mps group 3

8/2/2019 MPS Group 3

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An entrepreneur is a person who has

possession of a new enterprise, venture or

idea andis accountable for the inherentrisks and the outcome.

Failure isn't about crashing his company,

failure isn't about quitting his job or layingoff because the company didn't make any

benefits this year.


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1. Poor Execution

2. No Viable Market

3. To Much Leverage4. Undercapitalizing the Business

5. Lack of Competitive Advantage

6. Competing Head to Head with Industry Leader

7. Picking a Niche That is too Small


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8. Breakup of the Founding Team

9. Poor Pricing Strategy

10.Growing too Fas

11.others


6/18

Launched in India in the late 90s

Came up with three products Cielo, Matiz &

Nexia Had 50 dealers in the country & its production

plant was situated in Ghaziabad ,UP

Its product Cielo was a major hit in first sixmonths of its launch later the demand for it

declined


7/18

Improper managementImproper management

No adequate returns from investmentNo adequate returns from investment

mademade

Sharp decline in demand due to wrongSharp decline in demand due to wrong

product positioning & pricingproduct positioning & pricing

No proper after sales serviceNo proper after sales service

Competition fromCompetition from MarutiMaruti ,GM motors ,,GM motors ,

FordFord


8/18

Formed in 1985 by Kenneth Lay by merging

two natural gas companies

The company developed, built, and operatedpower plants & pipelines across the globe

Became the largest seller of natural gas in

North America by 1992

Enron had 70 times earnings and six

times book value


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In 1992 Jeffrey Skilling (former CEO)

was hired who developed a staff of executives

that were responsible for accounting

loopholes and all the debts

Created offshore entities, avoidance of

taxes & allowed the company to hide losses

Financial statements did not clearly depict

its operations and finances with shareholders & analysts


10/18

CFO Andrew Fastow & other executives not only misled

Enron's board of directors and audit committee on high-risk

accounting practices, but also pressured Arthur Andersen(theauditor)to ignore the issues

Later discovered, many of Enron's recorded assets and profits

were inflated or even wholly fraudulent and non-existent

In 2001, after a series of revelations involving irregular

accounting procedures bordering on fraud perpetrated

throughout the 1990s involving Enron and its accounting

firm Arthur Andersen, Enron suffered the largest bankruptcy in

American history

Absence of corporate culture, clear accountability and

transparency of the company


11/18

A retail value chain started in India in 1997A retail value chain started in India in 1997

Chennai based grocery and pharmaceuticalChennai based grocery and pharmaceutical

store founded by R Subramanianstore founded by R Subramanian

From150 stores in Sept 2006 all of whichFrom150 stores in Sept 2006 all of which

were in Tamil Nadu, the company grewwere in Tamil Nadu, the company grew

rapidly toover 1600 stores by Sept 2008rapidly toover 1600 stores by Sept 2008

across the countryacross the country


12/18

Expanding rapidly without sufficient funds

Over expenditure on advertising

Inadequate system control and IT support

Government control

Lackof HR policy andstaff

Huge rentals and lease bills

Strong competition


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14/18

MOTOROLA INC IS AN AMERICAN BASED

TELECOM COMPANY

ITS

WASSTARTED IN CHICAG

OASGalvin

Manufacturing Corporation IN 1928

IN 1947 IT WENT PUBLIC AND ITS NAME WAS

CHANGED

IN 1952 IT OPENED ITSFIRST INTERNATIONAL

SUBSIDARY IN CANADA


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17/18

NO INNOVATION

NO RESELL VALUE

NOT USER FRIENDLY

PRODUCTS LAUNCHED WERE NOTFREQUENT


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mps group 3

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