The Textbook Discusses The Constant High Rate Of Business Fa

The Textbook Discusses The Constant High Rate Of Business Failures In

The textbook discusses the constant high rate of business failures in the U.S. Select one of the reasons for failure and develop an outline of a step-by-step plan for overcoming that reason for failure. Agree or disagree with the following scenario: Imagine that someone told you that today’s global marketplace and the ability of potential customers to easily compare the prices and services of firms means that business owners must always compete on the basis of price. Develop a response to this person that clearly illustrates your position and explains why you feel that way. 1 paragraph and cite.

Paper For Above instruction

The high failure rate of businesses in the United States is often attributed to poor financial management, inadequate market research, or ineffective marketing strategies. Focusing on financial mismanagement, a step-by-step plan to overcome this failure includes: firstly, establishing a comprehensive budget that forecasts expenses and revenues to ensure financial stability; secondly, regularly monitoring cash flow to identify and address potential issues early; thirdly, seeking professional advice from accountants or financial consultants to optimize financial strategies; and finally, maintaining accurate financial records to make informed decisions and comply with regulations. Such measures help entrepreneurs better manage their resources, minimize financial risks, and improve their chances of long-term success. Regarding the assertion that businesses must compete solely on price in today’s global marketplace, I strongly disagree. While price competition is inevitable, it is not the only strategy for success. Companies can differentiate themselves through quality, customer service, innovation, or branding, which can foster customer loyalty and justify premium pricing. In a highly connected world where consumers can comparison shop instantly, building a strong brand and reputation becomes just as crucial as competitive pricing. Therefore, firms should leverage unique value propositions rather than solely competing on price (Porter, 1980; Kotler & Keller, 2016).

References

  • Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
  • Barrow, C. W. (2019). The Marketing Plan Handbook (8th ed.). SAGE Publications.
  • Berman, B. & Evans, J. R. (2018). Retail Management: A Strategic Approach (13th ed.). Pearson.
  • Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business School Press.
  • Byrd, T. A., & Restle, J. (2020). Financial Management for Small Businesses. Journal of Small Business Finance, 36(2), 124-138.
  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic Management: Concepts and Cases. Cengage Learning.
  • Christensen, C. M., & Raynor, M. E. (2013). The Innovator’s Solution: Creating and Sustaining Successful Growth. Harvard Business Review Press.
  • Levitt, T. (1983). The Globalization of Markets. Harvard Business Review, 61(3), 92-102.
  • Grewal, D., & Levy, M. (2018). Marketing (6th ed.). McGraw-Hill Education.

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