Failure In Small Business Essay Example for Free

Failure In Small Business Essay It is actually a fact that only about 53% of small businesses are not able to keep on trading after three years after their preliminary set up. Some of the businesses fail within their first year of operation. There are so many reasons why this tends to happen. However, business failure does not only happen with the new businesses but it also happen to those businesses which have been in operation for quite some time regardless of how successful they tend to be. Even if business failure happens to all sizes of businesses, the small businesses are very much affected by larger threats for the reason that they do not have the support of additional money as well as resources that the big companies have. Business failure does not only come about through the problems experienced in your own company, they can as well be achieved as a subsidiary effect from dealings made by other businesses, clients and suppliers. It is very necessary for one to identify the premature signs of business failure in order to solve the problem before it is too late (Dwight, 1993). Finally, the business failure comes about when the business has gone beyond a point where it can not continue operating in business any long without encountering supplementary troubles. These troubles might not offer any feasible solutions and for one to go ahead in trading, he or she has to put him or her self in even deeper problems. When the business has reached this point, it is very important for one to acknowledge the business failure early or else he or she will face increased financial as well as legal troubles when trying to save his or her business or he can even go further and put his business to rest. There so many causes of business failure. So many businesses fail because several managers do not incorporate accounting as well as accounting practices to a practical level in their business. Despite the fact that they don’t posses all the accounting knowledge, they really suffer from the lack of financial control together with the problems concerning the cash flow which leads to business failure. If one has a weak accountancy expertise, he is likely to employ a very knowledgeable bookkeeper to manage the financial records on a regular basis. It is very important for one to have somebody who can comprehend the monetary accounts plus the management accounts. Before starting up the business one is supposed to find some time to learn the financial management skills (Claire, 1998). Lack of funds is also another cause of business failure. If one finds out that he does not have enough capital to start up the business, he is supposed to wait until the time when he has saved enough money he needs before starting up a business. If one risks and starts up a business without enough capital then the fellow is destined for business failure. Lack of funds usually leads to too much borrowing and as a result, the business becomes insolvent for the reason that the liabilities becomes too high than the assets. Bankruptcy is a very common result as in it has a cycle of poor management. Lack of funds can also come through competition. As much as the business is offering competitive prices, the business will end up making little profit margin hence it will be too difficult to fund other areas within the business. High costs of finance is another cause of business failure because it can be so disastrous as soaring interest rates as well as unfavorable compensation schedules are so much ignored due to the difficulty of financing the business (John, 1994). As a matter of fact, it is very necessary for one to manage his or her finance with a very keen concern towards interest as well as repayment schedules in order to avoid the business becoming insolvent in the early moments. The collection of data is rather a frustrating process. One needs to persuade the potential data providers to take part. One has to convince them about the value of the information to the business. I provided the incentives for sources to participate such as the clean copy of the eventual database of the relative data to the rest of the database. Eventually I drew a data table in the business notebook to help during the collection of data. A data table ensured that the business is consistent in recording data and it makes it easier to analyze the results of the business. The techniques which were used during the collection of data are data mining techniques. I sorted from large amounts of data and picked out the information because it is the analytic process which is desired to discover data (Claire, 1998). It is expected that all the business persons must have a clear understanding of the failure points in future. Another outcome is that all the business persons must stay in business successfully by not selling cheap products or service. He is not intending to impress the customers but all business persons are supposed to make people feel that they are not getting ripped off. In future all business persons must learn to begin businesses with enough capital. The business person must always learn to hire more staff when there is too much work to be done. They are not supposed to get behind on the work or else the clients will not feel happy. The business is intending to get sufficient operating funds. The business will require the costs of starting and the costs of staying the business in operation. Enough funds are needed in order to cover all the costs until sales can finally pay for these costs. However, all the funds will be borrowed from the bank which will be repayable after the business picks up. References Claire, W. (1998). Risky Business: The Personal and Financial Costs of Small Business Failure. California: Policy Studies Institute. Dwight, R. (1993). Failure and Progress. New Mexico: Cato Institute. John, L. (1984). Success and Failure in Small Business. New York: Gower Publishing Company. John, H. (1991). Measurement of Success and Failure in Small Business. Washington: Curtin University of Technology. John, E. (1963). Small Business Instability and Failure. Alabama: Bureau of Business Research.

Courts Essays -- essays research papers

The jurisdiction of the federal courts is defined in Article III, Section 2, of the Constitution, as extending in law and equity to all cases arising under the Constitution and federal legislation; to controversies to which the U.S. shall be a party, including those arising from treaties with other governments; to admiralty and maritime cases; to controversies between states; to controversies between a state, or its citizens, and foreign governments or their subjects; and to controversies between the citizens of one state and citizens of another state. The federal courts were also originally invested with jurisdiction over controversies between citizens of one state and the government of another state; the 11th Amendment (ratified February 7, 1795), however, removed from federal jurisdiction those cases in which the citizens of one state were plaintiffs and the government of another state was the defendant. The amendment did not disturb the jurisdiction of the federal courts in case s in which a state government is a plaintiff and a citizen of another state, the defendant. Federal courts have exclusive jurisdiction in patent and copyright cases; and by congressional enactment in 1898, federal courts were vested with original jurisdiction in bankruptcy cases. The courts established under the powers granted by Article III, Sections 1 and 2, of the Constitution are known as constitutional courts. Judges of constitutional courts are appointed for life by the president with the approval of the Senate. These courts are the district courts, tribunals of general original jurisdiction; the courts of appeals (before 1948, circuit courts of appeals), exercising appellate jurisdiction over the district courts; and the Supreme Court.   Ã‚  Ã‚  Ã‚  Ã‚  A district court functions in each of the more than 90 federal judicial districts and in the District of Columbia. A court of appeals functions in each of the 11 federal judicial circuits and in the District of Columbia; there is also a more specialized court with nationwide jurisdiction known as the court of appeals for the federal circuit. The federal district court and the court of appeals of the District of Columbia perform functions discharged in the states by state courts. All lower federal cour ts operate under uniform rules of procedure promulgated by the Supreme Court. The Supreme Court is the highest ap... ...tes, the same courts of original jurisdiction deal with both civil and criminal cases; these courts usually have two levels, one handling misdemeanors and civil claims under $5000, the other handling felonies and civil claims over $5000. Between the lower courts and the supreme appellate courts, in a number of states, are intermediate appellate courts which, like the federal courts of appeals, provide speedier justice for litigants by disposing of a large number of cases that otherwise would be added to the overcrowded calendars of the higher courts. Courts of last resort, the highest appellate tribunals of the states in criminal and civil cases and in law and equity, are generally called supreme courts. In New York state, however, the Supreme Court is a trial court; the highest appellate court of New York, as well as of Maryland, is called the Court of Appeals. The state court systems also include a number of minor courts with limited jurisdiction. These courts dispose of minor offenses and relatively small civil actions. Included in this classification are police and municipal courts in cities and larger towns and the courts presided over by justices of the peace in rural areas.

Howard Schultz Strategy with Starbucks

When Howard Schultz first experienced Starbucks Coffee, Tea and Spice he was immediately smitten by the operations and business culture, and actively pursued a job with them. At that time, Starbucks Coffee, Tea and Spice was an 11 year old coffee shop with six stores in Seattle specializing in high-quality coffee beans. Starbucks Coffee, Tea and Spice desired to bring fine coffee to their customers, so to that end, they imported quality coffee beans, roasted them to their own exacting specifications and sold the beans and high-end coffeemakers to their customers, so customers could make superb coffee at home.The only coffee brewed onsite was the sampling of a roast, in order for a customer to determine if they wanted to buy that flavor, and as part of the education of their customers base to appreciate, and presumable buy more, quality coffee over the common variety available at the grocery store. Schultz, after a company trip to Italy where he accidently discovered the espresso bars of Milan, came back home with an idea of how to transform the business. His excitement was not shared by the owners, and when little changed over the next two years, Schultz left Starbucks Coffee, Tea and Spice to start his own company Il Giornale.At Il Giornale he did what he wanted to do at Starbucks Coffee, Tea and Spice – create the energy, ambience and community of the Italian coffeehouses in Seattle. Within two years the owners of Starbucks Coffee, Tea and Spice wanted to sell their business and Schultz happily purchased and combined both businesses, calling them Starbucks Corporation (SBUX). Schutlz, now in possession of the original stores, the roasting plant and his coffeehouses, was ready to fully explore his strategy.His plan was to create a place where his customer could enjoy premium coffee and feel pampered and relaxed, making the stop at his coffeehouse a part of the customers’ day – a 3rd place where they could go – an â€Å"urban oasisà ¢â‚¬  (Rumelt, 2011) (the 1st and 2nd place are home and work). This would be a treasured place, just for themselves or to meet with friends. Of course this unique experience was envisioned to expand nationally and create exponential sales as Starbucks became the place to be!To realize this ideal, Schultz needed to attract the right employees and engage his staff to behave so that â€Å"customers (had) a very positive experience in its stores. † (Thompson & Shah, 2010) He did this by a variety of methods, sourced from the six guiding principles the employee team came up with. He was able to achieve the 4th principle –â€Å"develop enthusiastically satisfied customers all of the time† – by having happy employees (1st principle), commitment to sourcing the best beans and standards to make the ‘perfect cup’ (3rd principle), and creating an emotional connection to his customers. Schultz firmly believed that Starbucks had to be a great place to w ork in order to provide the atmosphere and service that he envisioned. † (Brown, 2011) He realized that in order for his employees to be happy, he needed them to trust and feel they could communicate without retribution, and to feel valued. One of the ways he demonstrated their value to the company was to provide health care to even his part time baristas. Employees, now called ‘partners,’ were supported by extensive training in coffee knowledge, brewing, and how to â€Å"go out of their way †¦ to make sure customers were fully satisfied. (Thompson & Shah, 2010) Furthermore, they were rewarded by a recognition program which acknowledged excellence in brewing, customer service, leadership, savings, profits, and other activities that supported the company’s mission. Starbucks broadened their commitment to their staff by offering employee stock options to all employees, and later this would expand to include employee stock purchase programs. Schutzâ€⠄¢s plan created a new romance with coffee and the coffeehouse. His customers flocked to experience the ‘experience. Customers appreciated Starbucks dedication to fine coffee and the attention paid to them from the moment they walked into the store. Starbucks discovered that â€Å"the connections we make in communities create[d] a loyal following. † (starbucks. com) Customers spent afternoons at Starbucks. They brought their work to Starbucks. They dated at Starbucks. And they came back! Sometimes daily. Schultz’s strategy was a success. Starbucks became the number 1 retailer of specialty coffees. When Schultz took a break from everyday operations as CEO in 2000, Starbucks had grown to 3,501 stores.What a growth from a start of 11 stores and 100 employees in 1987. Two CEOs followed Schultz’s tenure and Jim Donald, the second one, put increasing the number of stores and store efficiencies as his strategy above customer service driving the business. â€Å"C omplaints surfaced that Starbucks felt more like a fast-food restaurant than a coffeehouse. † (New York Times ~ Business Day, 2012) This pursuit, along with the Great Recession, created havoc in Starbucks finances, driving stock price â€Å"from a high of $40 (5/1/2006) to $8 (11/17/2008). † (Living Economics) At that point, the Board usted Jim Donald and asked Schultz to come back as CEO and â€Å"lead a major restructuring and revitalization initiative. † (Thompson & Shah, 2010) Just like the first time he walked into Starbucks in 1981, Schultz wanted to be transported by the aromas and the ambience. He found the corporation he came back to missing those points. Making of breakfast sandwiches, added to compete with encroaching competitors, diffused the rich smell of coffee and distracted from the core product. Growth and appeasing Wall Street appeared to have become the product.His dream to â€Å"inspire and nurture the human spirit – one person, one cu p and one neighborhood at a time† (starbucks. com) would need a brutal review of what wasn’t working and what needed to change. â€Å"Mr. Schultz faced a difficult task: He had to slow down the company to make stores feel more like hip neighborhood coffeehouses while also delivering the steady growth that investors have come to expect from Starbucks. † (New York Times ~ Business Day, 2012) Schultz â€Å"concluded that growth had become a ‘carcinogen’ and that the company needed a transformation in its culture and operating approach. (McKinsey Quarterly, 2011) He halted the aggressive store openings and closed 900 underperforming stores. This in turn caused layoffs of 1,500 store employees nationally and 1,700 globally, and 700 corporate employees. He refocused the company back to its passion of obtaining the finest beans and creating the best brew. He recommitted to respect and pay to all – from the small coffee growers to the employees. And to devote Starbucks and their employees to the ‘human connection’ – from the customers seeking a good drink and a respite to meaningful contributions to the neighborhood where the store was located.Keeping coffee at the core, Schultz explored other revenue streams in order to grow the business. They could â€Å"seed and introduce new products and new brands inside [the] stores† (McKinsey Quarterly, 2011) and then license them for sale with diverse retailers. For example Starbucks developed VIA, an instant coffee that was superior to the basic fare that was available. They â€Å"integrate[ed] VIA into the emotional connection [they] had with [their] customers in [Starbucks] stores†¦[doing] that for six to eight months and succeeded well beyond expectations. (McKinsey Quarterly, 2011) With that track record, grocery and drug stores lined up to add this exciting product to their store lineup. Starbucks has added many similar products to distribution â⠂¬â€œ Frappuccino, a flavored iced coffee in glass bottles, now available just about everywhere. Starbucks has licensed Unilever Corporation to manufacture and distribute seven different flavors of super-premium coffee ice cream. Starbucks coffee beans are sold in various retail establishments, whether by the bag or in pods, for single cup dispensers like Keurig.All these items keep Starbucks in control of their brand and have significantly contributed to Starbucks’ financial good health. The stock has clearly responded to Schultz’s revamped strategy by rebounding from the $8. 26 (11/17/2008) to $51. 17 (9/7/12). Today, Starbucks has slowed down from Donald’s ambition of 40,000 stores with a controlled growth of 17,000 stores in 55 countries. As the market, competition and economies change and adjust throughout the coming years, Starbucks can be expected to refine their strategic vision.If they want to continue to grow, Schultz and his successor will need to kee p the same core vision that Schultz first had in 1987 and then again in 2008: passion for the best and commitment to customer service. Bibliography (n. d. ). Retrieved September 2012, from Living Economics: http://livingeconomics. org/article. asp? docId=182 McKinsey Quarterly. (2011, March). Retrieved from McKinsey & Company: http://www. mckinseyquarterly. com/Starbucks_quest_for_healthy_growth_An_interview_with_Howard_Schultz_2777 New York Times ~ Business Day. (2012, January 26).Retrieved from New York Times: http://topics. nytimes. com/top/news/business/companies/starbucks_corporation/index. html Brown, H. (2011, March). External Environmental Analysis of Starbucks and the Coffee Industry. Rumelt, R. (2011). Good Strategy Bad Strategy: The Difference and Why It Matters. Crown Business. starbucks. com. (n. d. ). Retrieved September 2012, from http://www. starbucks. com/about-us/company-information/mission-statement Thompson, A. A. , & Shah, A. J. (2010). Starbucks' Strategy and I nternal Initiatives to Return to Profitable Growth.

Industrial Revolution Essay - 1684 Words

Everyone goes to work every day to earn and support for their families. A lot of people go to school to aim higher and get a better job that suits them. People have their own reasons why they want to work or why they do not work. Those reasons are the drive that makes them do what they want to do. It’s what drives some people to do well in school and aim higher. The other people get their drive from not going to school but by doing something that makes helps them in the long run. Everyone worked, but when the Industrial Revolution began, it was the start of a new era for the working class of America. The Industrial Revolution was the start of the advancement in technology and the work life. Machines began to become an advancement that†¦show more content†¦He found that everything about the Industrial Revolution was unregulated. It created a whole new society and Marx believed it was not the way society and the work life was supposed to be. â€Å"We have proceeded f rom the premises of political economy. We have accepted its language and its law† (Marx 47). Marx knew that the society was conforming to capitalism. It became a problem for him to think that our society was going accept the way capitalism is going to change the society.Marx was afraid that economic system was going to become more politically involved. In accordance to that theory, it showed that the more politically involved it was, the more private owners that showed up or capitalist. Marx truly believed that capitalism was a forced progress and created more problems in society. With these problems being created, it created a divide of a two-class society. According to Marx, he explained â€Å"†¦whole of society must fall apart into the two classes—the property-owners and the propertyless workers† (Marx 47). When the industrial revolution began, he saw that the companies that formed treated their workers as commodities and nothing else. the two-class soci ety became as though the working class was there to be working and nothing else. The property owners, to Marx, stripped the workers of their identity and what makes them human. Work is supposed to give the worker a placeShow MoreRelatedEssay on Industrial Revolution1489 Words   |  6 Pagesenvironment. Industrial revolution was so fundamental that it’s often compared with the transition from farming to stock raising, which began several thousand years before the birth of Christ. Considering the uses of natural resources, can human history be dived up into three pieces of varying length; hundreds of thousands years before â€Å"the agricultural revolution†, thousands of years between this and the Industrial revolution and the two hundreds years after the beginning of Industrial revolution. BeforeRead MoreIndustrial Revolution Essay766 Words   |  4 PagesAmerican Industrial Revolution In the 19th century, America became an industrial country, the powered machinery shifted the industry into mass production. The development of steam engines improved the transportation system, further, increased the production of iron and steel. The textile industries have begun to develop, and produce various products. The industrialization leads to accessible banking, further, deliver telegraph communication to many businesses through locomotive trains. This essayRead More Industrial Revolution Essay1623 Words   |  7 Pageshuman culture since the advent of agriculture eight or ten thousand years ago, was the industrial revolution of eighteenth century Europe. The consequences of this revolution would change irrevocably human labor, consumption, family structure, social structure, and even the very soul and thoughts of the individual. This revolution involved more than technology; to be sure, there had been industrial quot;revolutionsquot; throughout European history and non-Eu ropean history. In Europe, for instanceRead MoreEssay on Industrial Revolution1279 Words   |  6 PagesIndustrial Revolution Europe during the eighteenth century was at the height of the industrial revolution, none of which reached America. In New England the population was largely English, but America as a whole had more than 20 ethnic strains present, nowhere in Europe could such a heterogeneous mixture be found. America was unique in its political structure. Americans vested authority in personalities, rather than, as in England, in institutions of tradition. As a people they had been stripedRead MoreIndustrial Revolution Essay841 Words   |  4 Pages19th century, a period of industrial revolutions transformed the west as it is known and the people living there. The first and second industrial revolutions shaped the west as it is today through changes in manufacturing, labor, and the exchange of ideas and goods. Inventions and ideas of the time changed the way goods are made. Advances in manufacturing, whereas previously, families would work in their homes and rural farms with many workers, after the industrial revolutions, manufacturing was doneRead MoreIndustrial Revolution Essay734 Words   |  3 PagesDue to the Industrial Revolution, many changes started occurring in this new era such as the factories began to use more mechanics, limiting skill needed to produce products as well as hastening the harvesting of raw materials. Secondarily there was a huge standard of living and wage drop in cities due to urbanization which occurred after the factories created an abundance of jobs. Also, there was a huge shift in the population and there was a massive population growth due to the excess food andRead MoreEssay on The Industrial Revolution1366 Words   |  6 PagesThe Industrial Revolution Introduction to the Revolution The Industrial revolution was a time of drastic change marked by the general introduction of power-driven machinery. This change generally helped life, but it had its disadvantages as well. Pollution, such as Carbon Dioxide levels in the atmosphere rose, working conditions declined, and the number of women and children working increased. The government, the arts, literature, music, architecture and mans way of looking at life allRead MoreIndustrial Revolution Essay763 Words   |  4 Pagesï » ¿ The Industrial Revolution The Agriculture Revolution was a time when people worked the land by using simple hand tools. By the 1800’s, most people in Western Europe and the United States lived on farms. The nation’s economy was based on farming and the making of goods by hand and trading. They lived in rural areas in little cottages lit with firelight and candles. They made their own clothes and grew their own food. The system of making your own clothes was called the putting out systemRead MoreThe Industrial Revolution Essay972 Words   |  4 PagesConditions of laborers and the role of women in society has been constantly evolving over the course of history. However, these two major groups experienced the most drastic alterations during the Industrial Revolution. Between the 19th and early 20th centuries, laborers diversified in age, while labor conditions declined. During this same time period, the role of women was reinvented as females searched for work and changed their role within the family. To begin, industrialization was the instigatorRead MoreThe Industrial Revolution Essay847 Words   |  4 PagesThe Industrial Revolution During the 1800s, phenomenal changes took place in America. These changes would impact our society incredibly for years to come and even still in the present. The major changes that took place were in transportation and industry. American society expanded so much in the early 1800s that it very well could have been the only time in history where this happened in such a short amount of time. From steamboats to railroads and from textile mills to interchangeable parts