Warning: 25 Key Factors Leading to Company Failure

Author: Ke Wei
Publisher:
Publish Date: 2005-07-01
Features: All large enterprises have once been weak; all small enterprises harbor a dream of soaring to great heights. However, according to surveys, the average lifespan of Chinese conglomerates is about 7-8 years, while that of small and medium-sized enterprises is roughly 3-4 years! The urgent task for Chinese enterprises is to extend their lifespan—only by "surviving" can we talk about "surviving better." The prerequisite for sustainable development is preservation. In a sense, as latecomers, we are fortunate because there is much experience from predecessors to draw upon, and many lessons to learn. Fools do not learn from lessons; wise people learn from their own mistakes; and the wise learn from others' mistakes. May our enterprises become wise and intelligent!
Today, the largest and strongest companies often have humble origins, while once-glorious enterprises are now hard to trace. We only see the brilliance of current successful figures but forget that behind almost every success, there are the footprints of many failures. We only see the brilliance of current successful figures but forget that behind almost every success, there are the footprints of many failures. With the collapse of the Delong Group stocks, the "Delong Kingdom" is no longer celebrated. Those once-mighty enterprises like Xusun, Chunda, and Aide are now almost historical terms. Even stars face such fates—how much more so others. This book warns us: Chinese enterprises must pay attention to the problem of "early demise" and seek an effective solution. The reasons for enterprise demise are complex and varied. This book starts from 25 critical factors—such as corporate vision, strategic planning, institutional management, and corporate culture—that determine a new company's survival—and summarizes corresponding solutions, making the problem clear and well-structured. Unlike other obscure and difficult-to-understand books in the same category, this one is written in plain and easy-to-understand language, with rich and insightful case studies, combining practicality and applicability. It is believed to provide timely and beneficial guidance for every aspiring entrepreneur and manager of a newly established company in its early stages.