The Business Can Survive Essay
There is no business in the world that does experience serious fluctuations in market forces, customer loyalty and investors’ interest that may warrant a reconsideration of its sustenance, and or a total reshuffle of the business ideals. The Nokia Company a former paper making company that now deals in productions of mobile phones is a good example of the importance of closing some chapters of business in order to open orders that of far more lucrative market value.
There are times in the natural history of a business venture that it becomes pertinent to reconsider the continuous production of some products that have reduced customer patronage. This is a very crucial time, and can be a stepping stone to greater heights for the Company.
At this point in the life of this business, that many reports have consistently revealed the non-profitability of this product. These have been confirmed by market survey and reduced customer loyalty with associated loss of profit from production. In essence, this business has not been yielding profit as it should because of multifaceted pellucid factors that have militated against such. It has therefore become pertinent for management to look into the matter so that necessary adjustments can be
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With these factors at hand, it is apparent that shutting down the non-profitable operation is the solution. But there is an inherent that has to be seriously considered in the chain of events that has warranted the loss of profit. And this includes the factors that are responsible for the crash in profit, the forces of demand and supply and how elements of measuring these things have contributed to the decline in profit generation. Management needs to examine analytical and critically, the sequence of activities that have led to this juncture. It would obviously be unwise to continue to operate at loss. This is time to reconsider the ideals of the Company and create a sustainable solution that would be both beneficial to customers and staff.
Really, it is no news that firms are making profits. The issue really is to create a platform where stakeholders can boldly and freely brainstorm to redefine an unstable ideal for the business venture. Moreover, it also affords an appraisal period to check the individual inputs of the staff, and the various units of the operation. Having duly considered the mission statement of the Company, its production process and distribution networks, the company needs to encourage diversity and also create a reward and appraisal system as incentives for hard working staff.
It is no time to run from the face of battles and business challenges; it is high the credibility of management is tested at rising up to this occasion. Instead of finding the cheapest and least lucrative way out, it should seek headlong to preplan, refocus and create better market strategies at emerging attractive to the market. It also needs to appeal to the values of staff, raising their courage and also possibly finding other deriving other aspects of business through which its service can become better acceptable to the final consumers. It is only when these have failed that a shutdown becomes a profitable escape.