The success of any organization will depend on the existing business model or strategy. Companies can introduce effective leadership styles and produce goods or services that will compete efficiently in the global market. The concepts of success and failure are critical for managers who want to take their firms from point A to B. The purpose of this paper is to describe these processes and the most appropriate decisions that support them.
Success vs. Failure
Some business organizations will succeed while others will not. Oh, Hong and Hwang (2017) indicate that the presence of appropriate factors will ensure that a given firm remains in business for the longest time possible. Some of these attributes include the presence of a sustainable business model, the introduction of an effective organizational culture, proper leadership, and continuous employee empowerment.
Some firms will go further to meet the demands of all stakeholders and operate following the established guidelines by the government or other relevant agencies. Another unique aspect that can result in positive performance is the introduction of new changes depending on the emerging demands of the targeted customers (Leković & Marić, 2015). The concept of research and development (R&D) will ensure that firms pursue such initiatives effectively.
However, some companies will not succeed due to diverse factors. For instance, the absence of desirable culture, leadership, and a sustainable business model will deliver negative outcomes. Firms that ignore the drivers of change will maximize their chances of becoming obsolete or less profitable (Leković & Marić, 2015). Businesses that ignore the new demands of their customers, fail to attract new ones and underestimate the strengths of emerging firms might eventually run out of business.
Concept of Failure
Very few corporations will consider a scenario whereby they want to become obsolete. However, the existence of various conditions can take a given organization in that direction. For instance, managers who fail to monitor or predict emerging forces in the external and internal environments will have higher chances of failing. Some leaders can ignore the demands and expectations of their employees (Oh et al., 2017). This malpractice will result in disillusionment and unwillingness to support the established business model, thereby minimizing chances of success.
The concept of failure will become a reality in corporations that fail to transform their strategies depending on the issues recorded in the industry. For example, specific firms might fail to embrace the power of social media networks to market and attract more customers (Eweje & Bathurst, 2017). The absence of effective organizational culture, employee appraisal and performance management systems, and proper leadership will fail. Companies that lack contingency plans to address emerging challenges or obstacles will be at risk of becoming uncompetitive in the regional or global market.
Embracing Success and Avoiding Failure
Some companies consider the importance of embracing success and avoiding failure. They achieve this objective by designing and implementing powerful business models that are sustainable and informed by the changing demands of the targeted customers. The leaders of such firms tend to monitor the issues facing the industry and implement powerful strategies to tackle them. Their managers pursue the notion of change in an attempt to introduce superior practices, organizational cultures, procedures, and behaviors that have the potential to transform business performance (Eweje & Bathurst, 2017). The introduction and promotion of positive approaches to meet the demands of both the internal and external stakeholders will also ensure that the concept of success is taken seriously.
Successful companies tend to analyze and measure existing processes, products, structures, and cultures. They go further to examine the sustainability of resources and practices required to deliver positive results. Such firms avoid failure by remaining focused and considering possible trends that might disorient performance (Leković & Marić, 2015). They engage in career training procedures to ensure that their employees acquire additional competencies that can prepare them for additional tasks. Some firms will go further to pursue the idea of corporate social responsibility (CSR) as a way of identifying the needs of different stakeholders and conserving the natural environment.
This practice makes such companies sustainable and capable of attracting additional customers. The decision to improve each of these practices creates the best conditions for ensuring that more gains are recorded. Emerging issues tend to be addressed before they can affect performance. The result is that such organizations will embrace the concept of success and avoid potential failure.
Critical Decisions
Several critical decisions are essential since they have the potential to lead a given organization in the right direction and eventually make it successful. Firstly, companies that embrace the attributes of positive or desirable leadership style, effective organizational culture, and appropriate structure will eventually become successful. Some will go further to make evidence-based decisions and formulate befitting business models (Leković & Marić, 2015).
Organizational managers will consider the most appropriate strategies to produce high-quality goods and services without incurring numerous losses. They will also acquire modern technologies to streamline operations. The decision to introduce effective practices in a given firm will improve the nature of interpersonal communication, decision-making, problem-solving, and employee motivation (Son, Kim, Park, & Kim, 2018). The inclusion of employees in different business procedures will ensure that such stakeholders are willing to be involved in strategy formulation. They will go further to present additional insights for taking performance to the next level.
A tendency whereby companies focus on the external drivers of change and implement befitting practices will increase their odds of recording positive performance. Leaders who guide their firms to pursue different CSR initiatives will ensure that positive results are realized. The concept of continuous improvement is a powerful business decision that can support the success of any company and ensure that it remains in business for the longest time possible.
It will also continue to deliver high-quality products or services to the targeted customers (Son et al., 2018). Ignoring most of these approaches or decisions will make it impossible for more firms to remain competitive or capable of meeting the demands of their respective stakeholders. Consequently, such companies will be unable to record enough profits, thereby becoming unsustainable.
Conclusion
The above discussions have indicated that the introduction of superior practices and formulation of evidence-based decisions will guide more companies to succeed in their respective sectors. Some of the key issues to consider include the nature of leadership, existing organizational culture and structure, the promoted business model, and the continuous inclusion of all key stakeholders in strategy formulation. Firms that ignore these attributes will, therefore, be pursuing the concept of failure and will eventually become obsolete or fail to make adequate profits.
References
Eweje, G., & Bathurst, R. (Eds.). (2017). CSR, sustainability, and leadership. New York, NY: Taylor & Francis.
Leković, B., & Marić, S. (2015). Measures of small business success/performance – Importance, reliability, and usability. Industrija, 43(2), 7-26. Web.
Oh, S., Hong, A., & Hwang, J. (2017). An analysis of CSR on firm financial performance in stakeholder perspectives. Sustainability, 9(6), 1023-1034. Web.
Son, I., Kim, J., Park, G., & Kim, S. (2018). The impact of innovative technology exploration on firm value sustainability: The case of part supplier management. Sustainability, 10(10), 3632-3648. Web.