Answer to Question #245809 in Management for kish

Question

using relevant examples, explain the different types of failure you are likely to encounter in your operations process

Answer 1

1.Responding to competition

Starting a business is more feasible and achievable today than it has ever been. However, with so much readily available knowledge and guidance, there may theoretically be greater competition in the same industry. For example ,a competitor offers the same product/service at a lower price than you, taking a sizeable chunk of your customers with them.

2. Uncertainty

You never know exactly what is going to happen in the future, but you can prepare for customer and market trends with some canny forward planning. Most businesses will have some sort of goal for the future mapped out, but it’s surprising how many fail to plan for periods of uncertainty.

for example, the fluctuation of market trends in a changing economic climate can cause businesses to stifle themselves, creating discomfort among their employees.

3.Cash flow

Whether it’s outstanding bills, unexpected outgoings, or pending payments, money problems can be a major issue. With so much to balance, maintaining a healthy cash flow is key to surviving as a business.

For example, the business completes a job and gets paid after a month. However, you’ve got infrastructure costs, employee salary and your personal expenses to consider too