Final Task

Insolvency Helpline

Follow this link from the Insolvency Helpline. It lists the 65 most common reasons for business failure. Print out a copy of the page and cut out the list. See if you can match the causes under the following headings:

• Change in demand
• Costs
• Planning
• Organisation
• Cash flow

Take one of these areas and write a short explanation of two ways that a business might adapt to deal with the problems.

B&Q

The DIY chain of stores, B&Q, is facing various problems. Read the BBC News article that outlines these - B&Q sales remain under pressure.

B&Q is a major DIY retailer but it is facing problems - what are the causes and how likely is it that they would 'go bust'? Copyright: Dirk Tacke, from stock.xchng.

1. What is the cause of the problems facing B&Q?
2. B&Q's profits have fallen over the past two years. How much of a concern do you think this will be to the Directors of the business?
3. Under what circumstances do you think B&Q might 'go bust'?
4. Explain how the strategies the company is adopting will help to solve its problems.