Always companies try all in their power to do their work perfectly, but falling into the error remains possible, in the business world, all mistakes you’ll pay for it, and sometimes it can cause these errors serious problems.
In this report, the Spanish magazine Negocios y Empresa reviewed the most common mistakes companies can make.
Mistakes 1: Not studying market trends
Simple dynamics of the market provide fertile ground for the emergence of many trends, so how can an investor ignore such an important thing?
Market behavior is more like a thermostat that alerts the investor to the opportunities available to him, and a compass to guide the decision-making process in the right direction to serve the good of the company.
In the business world, even if you are a leader in your field, neglecting market trends can make you make the worst mistakes, for example, technological innovation is a factor that determines the corporate environment, and Kodak was among the companies that ignored this.
Despite the fact that it patented the first digital camera, this market leader in photography decided to focus on analog cameras, and did not notice the huge consumer demand for digital technology, as a result of this error, the company declared bankruptcy by 2012.
Mistakes 2: Fear of change
Any change in the regulatory sphere-however insignificant it may seem – generates uncertainty, which makes sense; if not, decision-making and leadership will not be complicated; if a company aspires to be successful in an unstable and volatile context as it is today, it cannot fear change, and leveraging what can happen is a skill that only successful companies possess.
Mistakes 3: Underestimating the competition
Underestimating competitors is the most common business mistakes, where the company believes that other brands are persistent or unable to succeed and sweep the market, but competition is part of the external environment of the company and should be taken into account in any process, whether market analysis or decision-making and knowing how competitors work helps to anticipate the impact of their
Mistakes 4: Radical brand change
The process of brand redesigning is complex and can have sometimes positive results and sometimes disastrous consequences, and if something goes wrong it can be difficult to recover what the company has lost, and during this process, it is necessary to take into account the opinion of consumers to see if the change will produce positive feedback.
Mistakes 5: Making bad decisions
The decision-making process – which is crucial for companies-needs not only acumen and objectivity but also creativity, the results of the right decision are often success and development, while an ill-considered decision will only bring the company losses.
Mistakes 6: Vanity
There is no doubt that self-confidence is an attribute that any investor should have, but vanity can push its owner to make decisions that end with serious mistakes, and this Vanity usually leads to an overestimation of self-esteem that leaves the owner unable to admit his inability to achieve a certain goal or possess skills necessary for the success of his
Mistakes 7: Excessive self-confidence
Overconfidence and overconfidence in brand capabilities can lead business managers to make serious mistakes, for example, good intentions made Xerox reveal its secrets and concede the greatest technological invention of the 20th century, allowing Apple to visit its facilities in Palo Alto, California for a million dollars in stock.
Steve Jobs and his team were so fascinated by the new Xerox technology that they decided to completely redefine the Lisa project, and in jobs ‘ words, “Xerox could have dominated the computer industry, but its vision was limited to designing another printing machine.”
Mistakes 8: Narrow vision
Many managers do not worry about what will happen in the future, how it will affect their companies, and the company’s lack of a vision of the future limits its ability to create or accept new ideas.
Mistakes 9: Reduce costs without a clear plan
It’s important to control company expenses, but that doesn’t mean excessive austerity measures.
As quality is a necessary element to highlight the excellence of the company’s services, it is untouchable when thinking about controlling expenses, and the solution lies in determining which departments should reduce their expenses and which do not accept it so as not to damage the company’s business.
Mistakes 10: Not knowing how to manage the crisis
No company wants to be the victim of a crisis, but sometimes the company due to internal decisions or factors beyond its control may experience moments of instability, in which case it is incumbent on the company’s leadership to find a solution to get out of the crisis and get it to safety.