HTD 500 Chapter Notes - Chapter 3: Marketing Strategy, Unnecessary Health Care, Convenience Sampling
Document Summary
Restaurant failures have been attributed to economic and social factors, to competition and legal restrictions, and even to government intervention. After seven years, the propensity for failure drops dramatically. Firm size: the larger firms are, more likely to remain in business, the smaller firms are, less likely to remain in business, both suppliers and bankers are prejudiced against smaller firms. They tend to take longer to act against a slow-paying . large enterprise than they do against a smaller firm, because they equate bigness with safety and security. Its ability to differentiate itself - fatal: location in its market, can benefit from close proximity to competition, often located in clusters to attract more traffic. Internal factors: management capabilities are of primary concern in preventing restaurant failure, managerial inadequacy, incompetence, inefficiency, inexperience, poor management. Inadequate accounting records: poor financial conditions, limited access to necessary information, lack of good managerial advice, others. Internal relationships: poor product, financial volatility, organizational culture.