Why Businesses Fail

Question

Description

There are many reasons why businesses fail. Failure can be rooted in bad management, misguided leadership, strategic failings, market changes, or just bad luck. Or, often, a combination of all these…

David Chancellor, guest blogger

A recent study published in the Journal of Financial and Quantitative Analysis (a rip-roaring read!) suggests that more than 50% of companies won’t survive to age 16, with the highest corporate mortality occurring in the fourth year.

The Boston Consulting Group’s 2015 report, Die Another Day: What Leaders Can Do About the Shrinking Life Expectancy of Corporations (Links to an external site.), involving 35,000 companies publicly listed in the US since 1950, claims that today almost one-tenth of all public companies fail each year, a fourfold increase since 1965. The “five-year exit risk” for public companies traded in the US now stands at 32%, compared with a five percent risk 50 years ago.

Since this one-in-three chance of not surviving the next five years falls within typical CEO tenures and investor time horizons, we decided to analyze four companies that suffered early demise to learn why they “prematurely” failed

In this essay, you will be looking up a company that failed because of cost control and budgeting. Your choice of company. Do the history on the company, why it failed, how long it was in business, and find out what they could have done to save that company?

Requirement

Two pages of content (300 words per page, minimum)

Two APA Citation (minimum)

Reference Material

https://www.bcg.com/publications/2015/strategy-die-another-day-what-leaders-can-do-about-the-shrinking-life-expectancy-of-corporations

Food and Beverage Service Decision Making and Cost Control.docx

https://www.7shifts.com/blog/restaurant-costs/

Cost Control PowerPoint.pptx

Cost Control Measures for Food Service Operations.ppt