FAIL- Companies
There are many companies that have suffered closures this year, some bigger than others but what are the reasons behind this?
Woolworths PLC
Well as a former member of the group I must say that I know exactly why the company closed and part of it was indeed down to the poor fixed asset accounting that the company had been doing. Woolies (as the public knew them by) were a huge company and they failed because of the idiots running it. The directors knew fully well that they were a failing business and they had over a year to sort this out and they seemed to do nothing. This obviously failed and I must say a lot of this was to do with the thick headed directors not being able to manage their assetsThis obviously failed and I must say a lot of this was to do with the thick headed directors not being able to manage their assets.
XL
Although a lot of this was actually down to the rising fuel prices and the recession part of this was that XL just had too many planes for the amount of people flying with them. Planes were of course the major asset of the company and because of this they were clearly not managing their assets in the best way. The recession had stopped a lot of people from travelling abroad at that time of year which is another reason the company took a nosedive into to the heart of recession.
MFI
This again can be blamed on many different things. One of the big reasons is that they really couldn’t give a damn about the aftercare for their customer which turned out to be a big issue. The big problem is that most of the things that the company said were included in the offer werent at all and this was a big problem. The thing is MFI were way too up themselves to realise that IKEA as a real compeitior which is why they failed as a company.
So the advice here? Get some asset tracking in there and make sure your inventory management software is perfect!