Business Failure

Hassam bin AyubWaqar Tufail

Sony Satellites Started in 1997 P.S.O Pump Swan Camp Islamabad Start-up Capital 100,000 Raw Material Lattened from one supplier Dishes supplied to whole-sellers and retailers Target Market was Gujranwala Business expansion to Lahore and other cities of

Punjab Employees 50

Causes of Sony Satellite Failure Lack of order fulfillment Lack of technology Lack of Capital High rent More Competitors More Workforce than needed Poor Management Lack of Supplier Relationship Stealing of Lattened Lack of Human management skills

Suggestions The Human resource managed properly to

reduce fixed and increase efficiency of operations.

If Business brought machine for production that reduce human element and increase productivity.

The production area(factory) outside city that reduce rent cost.

The business should have strong relation with supplier.

Unicom Started in 2007 Model town Humak Bazaar Cable Network Start-up Capital was 2,500,000 Target Market was Model town Business Expansion to nearby areas First two months profit was 20,000 increased

to 200,000 Employees Eight Ended on Jan 30,2014

CompetitorTeleman Cable NetworkOwner: Mr. Nazar HussainTactics Low Fee Free First Three Months Connection Cutting Offer More Channels

Causes of Unicom Failure Lack of Marketing Skills Poor Management High Licensing Fee Lack of I.T usage No Accountability No Planning Low Response to Complains No proper fee collection Banned Channels

Suggestions Complain Cell Outsource Marketing Employee salary on best effort system Innovation (Ad facility, New Channels) Fee Collection

Coal Started in 2003 Partnership Raw Material from Chakwal Customers was Brick Makers Profit was Rs.5000 per Truck

Causes of Coal Failure High Transport Cost Deceiving Partners High Decency CompetitionSuggestions Agreement Divided Work Cross Check Money Collector employee

Comparison Between Savour Food & Business Failures 1. Provide Quality food to

customer2. Innovation in products3. Less dependency on

employee4. Table vise duties of

employees5. High quality

management

6. Strong supplier relation

1. No quality provided to customers

2. No innovation3. Highly dependent on

employees4. No duties described

and schedule5. Poor management

(Stealing of Lattened)6. No strong relations only

one supplier.