4. Scenario
You have set up a business of your own
either a restaurant or a clothes shop
What issues are you likely to face?
Why are you more likely to fail than an
established business?
5. Business failure
Businesses are not always successful.
Many new businesses fail within their first
one or two years.
Even long established businesses fail
6. Case study page 41
Pick one of the four case studies.
Working in small groups, identify the likely
reasons for failure of your chosen business.
7. Case study page 41
1time air failed because...
Zambezi air failed because...
Pacific Blue failed because...
Hungarian airlines failed because...
9. Common causes of business failure
Poor planning
Poor cash flow
Poor management skills
Lack of objectives
Failure to invest in new technologies
Lack of finance
Poor choice of location
Poor marketing
Strong competition
10.
11. Homework
Find an example of a business that has failed.
Tell me:
Its name
Its core business activities
Reasons for failure
If possible, one suggest of how they could have
survived.
