Categories of the causes of failure | Type of problem | Decision-making level | ||
Strategic | Tactical or Competitive | Operational or Information Generation | ||
Problems selling | Reluctance to comply with customer preferences | ✓ | ||
poor customer orientation and service | ✓ | |||
bad location | ✓ | |||
lack of focus on precise market segments or niches | ✓ | |||
no formal marketing and sal | ||||
Thenot having systems in place to detect market opportunities | ✓ | |||
reluctance to invest in advertising and promotional activities | ✓ | |||
poor sales network training | ✓ | |||
market shortsightedness | ✓ | |||
ignorance of what is sold and to whom | ✓ | |||
ignore the customer | ✓ | |||
ignore the competition | ✓ | |||
ignorance of one’s competitive advantages | ✓ | |||
Problems with production and operation | Lack of technical capacity to manage production and operations | ✓ | ||
lack of knowledge of the sector in which we operate | ✓ | |||
negligence and lack of interest in the business | ✓ | |||
supply difficulties (raw materials and materials) | ✓ | |||
high operating costs | ✓ | |||
shoplifting | ✓ | |||
little previous experience with the products managed | ✓ | |||
lack of adequate information systems | ✓ | |||
serious shortcomings in internal processes | ✓ | |||
high levels of waste and misuse | ✓ | |||
time mismanagement | ✓ | |||
error in the calculation of the dead center or balance | ✓ | |||
operate in a sector with a very high dead center or balance | ✓ | |||
ignorance of the life cycles of each activity | ✓ | |||
Problems to control | improper handling of credits and collections | ✓ | ||
lack of knowledge of the company’s real financial status | ✓ | |||
unnecessary expenses | ✓ | |||
serious security errors | ✓ | |||
inventory mismanagement | ✓ | |||
serious internal control failures | ✓ | |||
shortcomings in budgetary and management control | ✓ |