Critically analyse why a business can fail during the early stages of Essay

Critically analyse why a business can fail during the early stages of operation in a context you are familiar with - Essay Example Below are a number of reasons why businesses may fail soon after inception. Before a business is started, proper planning should be done by the promoters of the business, who may also be the managers when the business has started operating. Prior planning is done using a business plan which looks into various aspects of the prospective business including the market, consumers, and the requirements of the business. A business plan should be prepared by a professional, and it should also show an extrapolated financial account of the business (Landstrom, 2007, p.57). Preparation of a business plan is essential because it gives the entrepreneur a feel of how the business will be. Most times when one is considering starting a business, the profit motive usually cloud a person’s judgment yet there could be telltale signs in the market which can show somebody that the business will actually not be prospective. Therefore, many businesses fail because the owners do not do a proper planning before they start operations, and some issues that would have been dis covered during business planning get the entrepreneur as a surprise. Another factor that may lead a business to fail within the initial stages of its operations is competition and barriers to entry. In well-established markets like the pharmaceutical industries and the hospitality sector in some countries, there is a stiff competition in the market and those who are already developed create barriers to entry for the upcoming businesses. A market example with barriers to entry in the hotel and hospitality sector is a market where Starbucks has a branch. Starbucks has been known to make market entrants face a difficult challenge which end up failing the business because of the competition practices it practices. Since the company is well established, with minimal operational costs due to its

TBA Research Paper Example | Topics and Well Written Essays - 2000 words

TBA - Research Paper Example This automotive racing world forwarded through the use of new technology and development. It is true that global environment is getting affected due to high consumption of fossil fuel and growing emission level of Carbon. The huge popularity of World Motorsport and negative impact on the environment forced the automotive industry, Energy department of United States of America and Environmental protection agency of the United States of America started to take the initiative to manufacture and design green racing vehicles. It is true that high sped and heavy racing vehicles need huge energy to perform effectively in a race. But, the automotive industry decided that the time has come to harness the creativity, innovation and efficiency to improve the effectiveness of the vehicles both on the track and off the track. Motorsport is considered as one of the popular sporting events that significantly contributed to the socio-cultural and economical development of a country. In addition to this, these specific events help to attract global visitors to experience the events. Looking into these aspects, several regulatory bodies, government of country and motorsport agency try to maintain sustainability of world motorsport events. It is clear from the introduction that the governmental bodies and motorsport agency is trying to introduce green motorsport racing in order to maintain environmental sustainability. Following discussion will help the readers to understand about its historical implication, economic and social issues and cultural perspective of this green motorsport racing event. Massive use of fossil fuel affects the environmental balance. High carbon emission level is the major consequence of the consumption of fossil fuel. It is known to all that motorsport vehicles consume high every fossil fuel as energy resources. In addition to this, consumption level of fuels is