What are ultimate reasons of corporate failure?

It is quite interesting to know what are the ultimate reason of corporate failure. The are many reason which is indicators of business failure and those things might be happen in  your company daily basis but you may not recognize it.

Here is the list of ultimate factors or reason of corporate failure based on my study of performance management paper in ACCA.

The firs one poor business planning: If you note that your company does have the business planning or the business planning does prepare carefully which attached to the currently performance of the company, then this the the factors of failure. You company might perform in the wrong direction to you corporate objective.


The second one of corporate failure is the poor financial planning or it simply called budget. The budget is the tool use to measure the performance of the company or its might also use by BOD to authorize the expenses that allow the executive level for implement. Poor of financial planning mean that the budget doesn't has clear basis of calculation, no controlling purpose, improper link to the corporate planning or objective. The budget might to be easy to perform or too tight to implement.


The  third one is poor marketing: to let your costumer know your product or services, you have to have good marketing program. It might be through campaign or e-marketing. If you does't have good marketing program, your product or service probably soon become small and small in term of marketing share. Marketing program is quite importance in the market currently. Most of the big company now choice e marketing as the strategy for their market penetration. Market penetration refer to increase the marketing share of you existing product.

The last one and I think it is the very importance is poor management. Poor management here what I understand is not only refer to poor executive level, but also poor of BOD.

If the company have poor leadership management like CEO, CFO, or related director, the cost of staff turnover will be high. The company will also face the lost of key staff and remain only inactive staff.

This is very importance to the company success. From my expenses, no productive department have poor leadership manager and no success company have poor management team.

Poor BOD or inactive BOD will let executive run the company freely and carelessly.