Research Of Business Failure Influencing Factors And Avoidance Strategies

In an open and free market economic environment, as the products life cycle, the business has its life cycle.There are huge uncertainties during the continuing operations of the enterprise. Whether a hundred years old or newly established businesses, there is a problem about success.The operation failed Unlike mismanagement. Mismanagement will lead to a decline in corporate performance, but business failure will lead to the end of the corporate life cycle. Business failure and mismanagement are in different areas.The research of business failure, is of great significance for the survival and development of enterprises themselves.There are many other types of performance when business failure is taking place. One of the most serious results, that is the end of the business life cycle. Meanwhile, the failure of inefficient enterprises operating effectively save social resources. In this sense, the warning factors research should can effectively reduce the cost of material and the human resource of the whole society, to promote the flow of resources to the more efficient and more valuable creative company.This paper focuses on the common reasons for business failure, and the common path of business failure, And trying to explore what early warning factors which the enterprises should focus on, to find the way throw which companies can upgrade their management level, and make the right management behavior and operating decisions. On the basis of the theory of crisis management, This paper presents the countermeasures enterprises to avoid business failure.