Business Paper

725 Words3 Pages
Business Failure Business failure is increasing in today’s economy. Some business fail early on and others have an extensive success record; however, business failure is due to poor management and leadership skills. Some organizations tend to lose track of their competitors and lack the marketing skills to remain competitive. Remaining competitive is challenging, however, organizations must evaluate their mistakes and learn from them and attempt again with a successful strategy. Organizations must be persistent and continue focusing on the success of the organizations. Most organizations give up before they fail. As an organization in the automotive industry, Daewoo back in the beginning of 2000-2001 was entering into challenging times within the industry. In considering the high levels and large numbers of competitive organizations, the automotive aspect of the business is a common concern to date not only the financial instability, but also the global economic concerns. In the beginning to the 21st century in contrast, the economy was booming. Today, however, organizations maintain a less stable level of financial security. Moreover, Daewoo “creditors formally declared the South Korean car maker bankrupt in 2000” (Mortishead, C. 2000). The automotive industry was securing itself within the time frame of identifying the majority products of larger/SUV type vehicles. Daewoo, the South Korean car maker, still was operating in an attempt for potential buyers in General Motors and Ford. Regardless of searching out for a recovery from an outside organization, Daewoo continued to “impose a debt work-out program but the company continued to hemorrhage cash” (Mortishead, C. 2000). Daewoo management made in active approach to save the organization from furthering any potential loss, however, the product in the market was unsuccessful in challenging the any of the

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