The Study On Enterprise Failure

It is an important topic for us to study the failure of enterprise. With the development of the China's market economic, there will be a lot of corporations, which will fail because of their poor operation. But this will creates the good opportunities for other corporations. All the departments of government should deeply recognize the nature of the enterprise and the market and the relationship between them, then, they can make a efficacious system for the development of economic and the synthetic strength of China.ZZBW Ltd is one of the famous corporations in Shanghai Exchange, which got the excellence performance from 1996 to 1997, but it operated poorly in 1998. This surprised everyone. What happened to ZZBW Ltd on earth during so short time? The author studies the finance of ZZBW Ltd to confirm that what happened in ZZBW Ltd from 1998 to 2000 belongs to enterprise failure at first in this dissertation. After the analysis of the operation of ZZBW Ltd, the author synthesize the five reasons for the failure of ZZBW Ltd, which are the structure of the corporation governess, the business strategy, the internal control system, the external macro-environment and the finance. Because of these reasons, the failure is not avoided.There will be the enterprise failure forever. The objective of studying the enterprise is how to delay the failure. The failure of ZZBW Ltd provides us a lot of implications.