What's the major reason for a de-growing business?

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usually, the internal structure of the org does impact the business, if the org. has a shortage of sales , a marketing team that educates the customers and prospects about company products, definitely, will decrease the business.

Employees development, company has to have a proper career development plan for each and every employee.

Well there could be various reason depending on the type of business, the industry and market you are operating in.

How ever usually it has to do with customer or competitors or just the trend. If a business is not growing or expanding it could be that its not generating enough profit and declining financially.

If its a financial reason then its your customers you need to focus on, its could be the location you are operating in is not suited to the market, or there is a new competitor in the market who can satisfy customer needs better than you or the trend has changed so you need to change along with it.

I know lots of fashion boutique and retailers in UK whose businesses went bust because of poor business location, poor promotion and marketing strategy.

A business also may decline if your staffs are performing poor or their is a problem with your products and service.

If you are aware Apple recently lost market share and it has to do with their products and their CEO, from my point of view the problem is with Bad Decision making and competitors rivalry.

For quite a while Apple has been growing with increase of its sale and market share but recently they changed their products features but didn't gave customers a good deal on price so now other their rivals have acquire some of their market by satisfying customer needs.

So conclusion, its either the external factors that maybe the reason why your business is decline or its the internal factor that you needs to pay attention to.

Hope this was helpful.

Expansion is among any business owner's top priorities. However, rapid growth often brings its own unintended consequences. The commitment of pushing revenues to new levels can strain a company's resources to the breaking point. Management also faces the challenge of recruiting employees who can handle expanded responsibilities, without sacrificing the cost and quality controls needed to stay in business. Expansion also brings renewed scrutiny on chief executives, who often not survive the transition.

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Compromised Quality

Rapid growth can lead to declining quality. One example is Toyota, whose executives aimed to own percent of the global auto market by, according to "The New York Times." In doing so, Toyota would surpass General Motors as the largest automaker. However, two major recalls changed Toyota's projections. The company responded by halting production of eight models that accounted for half its domestic profits. To analysts, the results suggested that Toyota compromised its reputation for quality, which had been central to its corporate identity.

Employee Turnover

Training and hiring becomes increasingly crucial as companies expand, because many employees' skills do not grow with the organization, states University of Virginia business professor Edward D. Hess in an August interview in "Bloomberg Businessweek." After studying companies in states, Hess cited hiring errors as one likely outcome of rapid growth. For example, some companies needed two to five tries before finding the right chief financial officer. Failure to evaluate new hires properly increases employee turnover, while creating loyalty and morale issues.

Financial Challenges

Expansion requires major financial investments that can turn sour if a company cannot keep up with the resulting obligations. One example is the Boston Market franchise, which grew from to stores by, according to "Entrepreneur" magazine's December report. However, poor sales plagued many individual stores, which struggled to repay their loans. In, the company closed stores, bought back nearly all its franchises and sought Chapter bankruptcy protection. These measures were not enough to prevent McDonald's Corporation from absorbing Boston Market in.

Loss of Control

Chief executives often do not survive the transition once the company outgrows their original involvement. This scenario happened to Brian LeGette, co-founder and CEO ofs, a Baltimore-based sports apparel company, "Inc." magazine reported in November. After several years of spectacular growth, revenues stalled at $ million in. Needing short-term loans to shore up the company's finances, LeGette sought help from Patriarch Partners, a private equity investment firm specializing in distressed debt. In July, Patriarch ousted LeGette, and installed its own CEO to runs.