Background:

In addition to your module readings exploring the models of communication, Chapters 1-4 in Business Essentials provided some insight as to how:

external trends create and influence businesses
supply/demand and growth/stability influence the economics of business
a company’s ethics and commitment to social responsibility influence external perception
companies cultivate responsibility toward customers, employees, investors, and government interactions
entrepreneurial innovation is critical to the modern business environment
start-ups and other ventures find funding opportunities
companies select an appropriate legal structure to a business venture and how that can evolve over time
companies face many challenges of corporate ownership and how overcoming those challenges translates to business success
global business and associated norms influence the world’s marketplace

In Chapter 3: Entrepreneurship, New Ventures, and Business Ownership there are four reasons noted as contributors to the failure of a business over the long-term. These four general factors related to failure include:

Managerial incompetence or inexperience
Neglect
Weak control systems
Insufficient capital

The authors also cite four reasons for success:

Hard work, drive, and dedication
Market demand for the products or services being provided
Managerial competence
Luck

Assignment:

Using the reasons referenced by the authors in Chapter 3 as contributors to a company’s likelihood of failure or success, select two companies that you feel represent the accuracy of the reasons given by the authors. Describe why you selected each of the companies and why you feel they best fit the profile of failure or success within the context of the reasons given. If the company failed, what do you think they could have done to prevent failure? If the company is successful, what do you feel they can continue to do to remain that way? Keep in mind that companies can fail or be successful because of just one or all of the reasons in the short-term just as they can in the long-term. Flexibility, innovation, adaptability all play into this as well.

Select one company that has had a major public failure as a result of:

Managerial incompetence or inexperience
Neglect
Weak control systems
Insufficient capital

examples: Enron, Pets.com, Betamax, Swiss Air, Polaroid, DeLorean Motors

and select one company that has had major success as a result of:

Hard work, drive, and dedication
Market demand for the products or services being provided
Managerial competence
Luck

examples: Apple, Netflix, Amazon, Wal-Mart

Submission Requirements:

Please submit a two-page paper, double-spaced, in 12 point Times New Roman font formatted in MLA style (click HEREPreview the document for a sample paper formatted in MLA style). Be sure to address:

Why you selected each of the companies
Why you feel they best fit the profile of failure or success within the context of the reasons given.
If the company failed, what do you think they could have done to prevent failure?
If the company is successful, what do you feel they can continue to do to remain that way?
Why you feel additional factors such as flexibility, innovation, or adaptability to market demands also contribute to company success or failure.
In what ways do you think the reasons for failure and success are attributed to the models of communication?

Why Companies Fail