Right from big to small companies, all struggle at some point of time or other. The companies struggle because of various reasons. Companies make profit and at times runs into loss. All these depends on the various aspects of company’s governance. Running a company is a big task. This paves the way for a lot of processes. When these processes go wrong, in long run companies start struggling.
Some of the factors why company struggle I am mentioning as below:
1. Wrong product strategy: Now companies make products or offer services. When the product strategy goes wrong, the movement of product or services gets affected. It can be due to various reasons. At times, the quality of product goes down, at times the demand gets down, at times preference of customers for the product changes. So product strategy is a vital strategy for any business. Product makes a company. Generally, company makes a product and misses to rectify it. This makes the product strategy wrong. This affects the business in long and short run.
2. Wrong growth strategy: Every company plans for growth. Company has to grow to stay alive in the market. This makes to way for growth strategy. However, at times, the growth strategy turns wrong. This is one of the blunders a company faces. The wrong growth strategy leads to cash bleeding and cash loss. Hence leads to improper financial position. This makes the company struggle for a longer time.
3. Wrong operational strategy: Operations is the major process for a company. This makes the company run. Hence products are made, and services are offered. If there is no operation, product cannot be made and services cannot run. Hence, operation strategy need to be designed properly. At times operation strategy gets faulty leading to various business related problems. At times, the operation consumes a lot of cash, at times operation make sub-standard products, at times operation delays the products and services. These all strategies are degrading for a business. These make business struggle and suffer.
4. Wrong sales strategy: Sales is the backbone for any business. There is no revenue, if there is no sales. So sales is the real lifeline for the business. Sales strategy should be strong and dynamic. If the sales strategy goes wrong the lifeline for the business gets cut. Hence you should always remember under all circumstances your sales strategy should be proper and well designed.
5. Wrong HR strategy: Human resource is the most important resource for any company. They are the real pillars of business. Hence human resources policy of the company should be well defined and well followed. It starts from recruitment, goes to remuneration and employee engagement. In today’s world it is important to keep the employees motivated and well engaged. Here the role of HR comes across. So, the right HR strategy and policy on the key in this. So, one must take care of the human resources of the company using right HR strategies.
6. Wrong customer handling policy: The customer is king now a days. They have a lot of options. It is important to keep customers loyal for one’s business. This is not an easy task in the competition market. So, it is important to keep a good customer handling policy for a company. It is important to have a right policy in place, to handle the customer complaints and feedbacks. These are some of the important processes which make the customer attached with the company for long run. So right customer handling policy is another key for this.
7. Wrong financial processes: The finance is the real feeder for a company. Right control over financial processes are important. It is important that finance department should raise alarm when something wrong going across. It is important that the Finance Department should strictly follow the compliance and the policies laid down. if the financial processes or policies go wrong that will result in absolute disaster for a company. this will not only spoil the company but can also get into legal troubles. so right financial processes are important.