MGT211

Introduction to Business
Lecture 11
Causes of Failure in Business
 People are not capable of handling business.
 Some people are not capable enough to
know markets.
 People should try to learn the abilities to run
the business.
 People do not have experience required for a
business.
Causes of Failure in Business
 We need to have control over:
 Production Process
 Cost
 Wastage
 Complaint handling
 Quality
 Insufficient capital
 Bad Luck
 National Disaster
Reasons for Success in Business
 Hard work
 Dedication and Commitment
 Response of Market
 Competence – The ability to work
 Knowledge of Market
 Knowledge of Product
 Knowledge of Systems
Reasons for Success in Business
 Luck and Act of God
 Law of Government
 Law related to health
 Climate change
 Disaster
Joint Venture
 Two or more people or organizations join
hands and decide to do a business.
 Advantage of Joint Venture
 Combination of skills and abilities.
Strategic Alliance
 Two or more than two organizations
collaborate for mutual profit.
 Decision involved in Strategic Alliance
 Profit Sharing
 Client Handling
Merger
 Two or more organizations combine together
and form a new organization.
Acquisition
 One business acquires the other business.
 Advantages of Acquisition
 Expansion of size
 To reduce competition