(1) The overall environment of the enterprise?
Enterprise is an open system, and it must consider the overall environment that may affect the enterprise. Enterprises should consider these environmental factors when formulating their own strategies. In the overall environment, the factor that may affect the performance of enterprises is the industry downturn. As a result, in such a period, newly established enterprises are facing great difficulties in survival because of decision-making mistakes. Enterprises don't have enough time to experience other events in a more general environment. ?
Due to the lack of flexibility after investment failure, the overall environment has a decisive impact on whether an enterprise can recover from failure. The failure of the expansion plan is not only the result of the overall environmental impact, but also the result of the inaccurate analysis of the management department. Other factors in the overall environment, such as the financial market in a bear market or the industry in recession, may accelerate the process of enterprise closure. ?
(2) Enterprise policy?
Since enterprise policies are formulated by managers, it is obvious that specific management mistakes will lead to typical mistakes in enterprise policies. Company policies include strategy, investment, business, operation, financial and administrative policies, human resource management and corporate governance. Different bankruptcy procedures are accompanied by specific management characteristics. Therefore, enterprises belonging to the same type of bankruptcy proceedings have many similarities. Common types of shutdown procedures include: start-ups, blindly growing enterprises (with excessive growth ambitions or extremely rapid expansion) and enterprises that are indifferent to environmental changes. ?
(3) Interaction between enterprises and their stakeholders?
Enterprises must consider the interaction between companies and stakeholders: customers and competitors are very important. However, other stakeholders (such as suppliers and banks) also have an impact on the company. Managers must predict and respond to environmental changes to improve efficiency. Most unsuccessful start-ups are faced with the problem of attracting and retaining customers. These enterprises have no unique sales methods, or the customer satisfaction is very low. Some blind growth companies failed because they overestimated the demand. At first, these companies faced the problem of resisting competition because they lacked the flexibility to adjust their business methods to adapt to environmental changes. Therefore, external factors, including disputes with competitors and competition from foreign companies, have become the direct cause of serious financial problems leading to the bankruptcy of companies. Different from other types of closure procedures, the closure procedures of blind growth enterprises are related to strategic advantages and intensified competition. Finally, for enterprises indifferent to environmental changes, the problem of attracting customers mainly stems from the fact that existing customers have turned to competitors, and these competitors have changed their business methods. ?
(4) Manager's attitude and negligence?
The main mistake of managers of unsuccessful startups lies in their recklessness in the process of establishing the company. Managers do not have enough ability and experience to adopt external suggestions and make predictions about possible problems and threats in the company. In addition, a few managers are the owners of the company. They have management experience but no industry experience, and their arbitrary behavior increases the rigidity of the company. Overestimation of turnover has led to the deterioration of blind growth enterprises, which should be attributed to managers' management skills and blindly optimistic personality characteristics. Managers' management skills and blindly optimistic personality characteristics affect their selection and absorption of expected turnover and investment plan information in the short and medium term. Managers also have some specific personality characteristics, such as professional knowledge, persuasion ability, risk-taking behavior, etc., which also have an impact on expansion decisions. ?
(5) The influence of managers and their management styles?
Managers are considered to be the most critical factor in the collapse of a company. First of all, the enthusiasm, quality and management skills of managers will affect the way managers manage companies. The lack of management skills and improper management methods of managers are the reasons for the bankruptcy of many companies. Many managers or entrepreneurs have limited professional knowledge in their fields. If managers are unwilling to accept professional advice, it will reduce the possibility of the company's medium-term survival. ?
(6) The industry in which the enterprise is located, the history and scale of the enterprise itself?
There is a strong connection between the characteristics of the company, the managers of the company and the policies of the company. In different types of companies, the management defects that lead to bankruptcy are different. Different types of companies have different management knowledge and financial management level. Old companies often go bankrupt because they can't adapt to changes in the environment.