what leads to success in business essay

what leads to success in business essay

Factors Contributing to Success in Business

1. Introduction to Business Success

Many business owners or managers assert themselves on the strength of this long link and relationship with the shareholders, with the staff, with suppliers, and with the customers. There is no argument for advocating the virtues of a highly efficient and effective business, capable of surviving and prospering over long periods by meeting the varying circumstances and demands of its environment. Every application of the theory of business administration, whether in management, accountancy, marketing, operation, or any other segment of skill, is concerned fundamentally to give advice on how best to create, nourish, and protect this link. It is also true, however, that when one looks behind the statistics that measure size, growth, and success, one finds it easier to identify failures or gross mistakes, which are frequently part of the life of every business.

Business survival and growth have been the subjects of rigorous empirical studies for several decades. Governments, private sector organizations, and researchers have carried out studies to identify, inter alia, the factors contributing to successful establishment and growth, the nature and underlying causes of the life cycle of the business, and obstacles to development. Survival and growth are not synonymous. Records of long-established business organizations can be found in every nation. Indeed, ownership of and participation in business activities are frequently the focal points for any discussion of income generation and distribution. This is because an established business has developed good, reliable techniques for the production, marketing, or management of its products, and consequently has intimate and often long-lasting relationships within its community.

2. Key Factors for Achieving Success in Business

There are many reasons why some businesses fail and others succeed. However, there are some common factors that you can use to make sure that your business will be a success. Some of the factors that are most frequently associated with businesses that succeed have to do with planning: research, planning, and teamwork. Make sure that you have a well-organized approach before you start your new business; take the trouble to do the research and planning that it takes to succeed. Finally, give all the teamwork and organization that you can. Starting a new business is not easy, but it is worth all the effort; when you put careful planning and teamwork into your business, you will lay the foundation for a successful business.

Starting your own business is part of the American Dream. It is a big jump, but it can be done. In fact, thousands and thousands of Americans have already started their own businesses, and thousands more will start their own businesses this year. Many of these businesses will fail, but many of them will also succeed.

3. The Role of Leadership and Innovation

The role of leadership in developing an innovative culture and organization capable of consistently delivering new and unique goods and services will be studied in context with recent dyad research, which states that every interaction impacts both parties and the relationship, as does every outcome. Model type innovation champions will be discussed alongside exploratory case studies of successful organizations. Outcomes resulting from attitude, training, leadership style, and risk tolerance profiles, including compensation and reward systems, ability to communicate a vision, and a commitment to making innovation a strategic priority, will be examined to determine if it is possible to predict and even measure an organization’s innovation quotient.

Competitiveness in the global economy, combined with rapidly changing business environments, requires innovative thinking to be part of the corporate culture. However, very little is actually known about how firms accelerate their innovation process. One thing is clear – innovative companies gain a competitive advantage by not competing on price, but rather by delivering products and services that are different from everyone else’s. The ones that accomplish this over and over again are able to sustain their competitive advantage over time.

4. Building Strong Customer Relationships

Both parties form switching costs; the customer declines less attractive alternatives and the organization encourages loyalty by providing an attractive offer. The strategic management component of building relationships is setting out a perspective that allows possibilities to be assessed from a relationship context. Extra relationship-based behavior such as customers providing reports of satisfaction will give ample opportunity to adjust strategic actions. Interpersonal relationships with customers will provide networking information; market accessibility will use relationships to meet needs, promoting acceptance and the creation of influential customers who present the brand to others. Organizations should identify and develop prick points that are related to the customer perspective and to develop understanding of the issues that are significant to the customer.

Strong relationships with customers are thought to provide a business with a number of advantages. In an age when there is so much choice, a strong relationship can be the main thing that separates one business from another. Relationship-based behavior is becoming increasingly important since the price of many standard products or services has been commoditized. Attitudes and behaviors towards organization change as the relationship grows from the building to the retention of customers and finally to loyalty. Loyal customers engage with the organization, are committed to it, develop a symbiotic relationship – a partnership where both parties receive benefits, and will undertake many of the marketing tasks on behalf of the organization, such as spreading the good news, bringing in additional business, representing the organization within their own organization, in meetings with other stakeholders or possible detractors and stakeholders, and using word of mouth as a powerful communication tool.

5. Measuring and Sustaining Business Success

The real sizes or measures of changes in entities are not their absolute sizes – these sizes reach absolute limits of height, weight, image, or whatever – nor is the entity defined by its final state when it is truly complete or perfect. What is most important is the directional movement of the entity. It is their direction and their rate of movement, or their inertia, which best determine this program of size distribution of life. The above concepts are applied in the following sections – to measure and define success in a business. After noting why business success is multidimensional, we analyze fifteen specific measurements of that success and the relation of these dimensions of success to the objectives publicly and privately established for business.

Success needs to be measured, for if something cannot be measured, one knows no criteria for decisions. The mathematical or statistical data might not be precise, but a nominal or ordinal scale is necessary. The measurement of success is complex: it involves many different elements covering the social, psychological, economic, and philosophical. But regardless of the expanse of these elements or the final nature of the measurement, there has to be an incremental growth or transitional mode of measurement. For growth and expansion are essential. Mankind or organizations that are not growing or changing or innovating are really operating under a facade of existence – if, indeed, they are not in the process of dying.