NAME: ADEYEMI ADEBIYI OLUSEUN

MATRIC NUMBER: 089074007

SCHOOL: SCHOOL OF POSTGRADUATE STUDIES

UNIVERSITY OF LAGOS
AKOKA
LAGOS.

PROGRAMME: MASTER IN INFORMATION TECHNOLOGY

COURSE CODE: MIT 821

COURSE TITLE: SOFTWARE SYSTEMS

ADDRESS: APIN/PEPFAR UNIT, Sacred Heart Hospital,

Lantoro. Abeokuta. Nigeria

GSM: 08035708574

E-mail: adeyemiadebiyi@yahoo.com

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Question: There is a common saying that business failures are due to health failure, vice versa.
Discuss and support your discussion with a verifiable statistics.
What should be put in place to avert these problems in this technological era or what
should be put in place to salvage companies / individual who are currently in this
situation.

ABSTRACT

The purpose of this paper is to examine the most common internal and external causes of
business failure for Enterprises due to health failures; look at the effects of failure for the
business and its stakeholders; provide practical guidance to entrepreneurs of Enterprises by
analyzing the most appropriate preventive measures to avoid business failure; and be of interest
to the advisors of Enterprises, especially those who do not specialize in business failure and
recovery. It also elaborates clearly the businesses that have failed mostly due to health failures.

INTRODUCTION

A business is always started with the purpose and intent of success. Individuals place their lives
on hold, their finances on the line, and their time into ensuring success when it comes to starting
up a business that they feel will succeed. Unfortunately, even with all of these efforts, many
businesses that start with the best intentions can experience failure which eventually leads to
health failures and vice versa.. As business progresses, it is important to know and understand
what it takes to avoid failure. In order to truly grasp what it takes to succeed, it is important to
consider what has caused the failures of many businesses in the past. Here, we take the mistakes
that have been made to identify those things that need to be avoided when it comes to business.

1.0 Business failures

Business failure can be defined as a business that has terminated operations with a loss to
creditors. Closure or cessation of business activity that results in a loss to its creditors. business
failure appears in the definitions of the following terms: illiquid, bankruptcy, winding up, panic
and inventory management. There are many reasons why business fails and they are stated
below:

1.1 Poor Location

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 Some of the reasons why start-up fail is the inability to situate in a good area for business.
Sometimes some organizations are located far away from raw materials and factors of production
like labour. If a fast food is located close to a bank, the business will thrive and if a boat
manufacturer is located in the neighbourhood there will hardly be sales because it is not a
riverine area.

1.2 Misuse Of Funds

Mismanagement of business of business fund is a big problem that causes stunted growth. If a
business begins to make profit, part of it should be reserved for the future plan and continous
existence. Atleast 40% should be added back to the capital and not misused by the business
owner for luxurious spending.

1.3 Lack Of Sufficient Capital

So many small businesses have this problem as there number one, because it is the capital that
will make provision for office and equipment, staffing, cost of production and advertising.
Sometimes start-ups need good capital depending on the plan of the business for instance, you
cannot run a cyber cafe with as low as a hundred thousand naira. You would have to consider the
cost of getting an office that is the rent, then the computers, printers, ISP(Internet service
provider), furniture etc.

1.4 Lack Of Experience

Where a business owner fails to make a good plan there would be failure in the long run of the
business and this is as a result of inexperience,also if a businessman does not understand the kind
of business to do and how to manage people very well there would be problems.Inability to
convince investors with a good business plan and a proposal is going to be a big problem,a
business person should enjoy and be passionate about his or her business.

1.5 Over-Investment In Fixed Assets

Sometimes some companies have made mistakes in the area of acquiring gadgets, machinery
and buildings. If an upcoming business should have over sufficient space and they paying for the
rent, it affects the size of their capital because such space is not used to give them extra income.
It is dangerous to have excessive working equipment and over staffing.

1.6 Competition
Some business cannot cope with the rising effects of competition in their area of specification,
because of lack of good planning strategy which could sometimes be as a result of piggy-
backing. Piggybacking means depending on a bigger business for survival, some businesses find
it difficult to build their brand and differentiate themselves from the crowd which a problem and
one of the biggest reasons small businesses fail.

1.7 Poor Execution

Strong execution-rather than a clever idea- is crucial to the success of new businesses. It stands
to reason, therefore, that poor execution is the downfall of most startups that go bust. There are
several ways you can avoid execution failure. First, you should conduct an honest evaluation of
your skills and only pursue opportunities that are aligned with your strengths. Entrepreneurs who

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are blinded by greed or arrogance are more prone to getting in over their heads. It's also wise to
surround yourself with talented people who aren't afraid to speak up when you're headed off a
cliff.

Companies with inept leadership usually fail in the first year or two, but even established
companies can stumble badly when they outgrow the capabilities of the founding team. Bill
Gates led Microsoft from inception to its current position as one of the largest and most
successful companies in history, but this is seldom the case. As a founder, you need the
discipline to know when to hand over the reigns to a professional manager who can take your
business to the next level.

1.8 No Viable Market

Each day, entrepreneurs from the "build it and they will come" school of business invest their
money in a cool idea with the hopes that customers will magically appear once they open the
doors. All too frequently, these hopes turn out to be in vain. History is replete with ventures that
crashed and burned because the founders spent all of their time and money developing a product
without bothering to consider how to attract customers. Even worse, many did not really
understand what customers valued and were willing to pay for. It's imperative to research and
validate the market before you launch your business.

1.9 Undercapitalizing the Business

It's all too common for entrepreneurs to grossly underestimate the amount of time and capital
necessary to reach cash flow breakeven, causing many promising ventures to shut down
prematurely. Be conservative with your financial projections and plan on having adquate funds
when you launch to cover all sunk costs (including startup losses) until your company becomes
cash flow positive. If you don't have enough savings to cover the required investment, it may be
tempting to launch the business anyway under the assumption that you will be able to obtain
funding at a later date. Whle staging investment has its advantages (preserving the option to
abandon, higher valuation and-therefore-less dilution, etc.), this strategy can backfire and leave
you unable to get the money when you need it most or force you to negotiate with banks and
investors from a position of weakness. It's often better to change the business model to bring
required investment in line with available resources.

1.10 Too Much Leverage

Mature companies can predict revenues over the next few quarters with some degree of certainty.
These businesses can make prudent use of leverage, both financial (debt) and operating to
improve equity returns. Revenues projections for early-stage companies, on the other hand, can
be all over the map. In this environment, it is dangerous to take on more than a token amount of
debt or other fixed obligations (rent, salaries, etc.). With no margin for error, if revenues take
longer to ramp up than expected-as they nearly always do-you may find yourself handing the
keys of your business over to your creditors.

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2.0 Health failure
It is the failure of the state of being well in body and mind. It could also be related to the
deterioration of a person’s mental or physical condition.
In other words, business failures may result to health failures or vice versa. On that note, the
following are the illnesses associated with health failures.

2.1 Heart failure

Heart failure typically develops slowly and is a chronic, long-term condition, The term heart
failure comes from blood backing up into — or congesting — the liver, abdomen, lower
extremities and lungs. This may possibly result from high blood pressure which may result from
business failures. There are two types of heart failures; they are chronic heart failure and acute
heart failure.

Some of the signs and symptoms for chronic and acute heart failure are:

Type of heart failure Signs and symptoms

Chronic heart failure
• Fatigue and weakness
(A long-term condition with signs and
symptoms that persist.) • Rapid or irregular heartbeat
• Reduced ability to exercise
• Sudden weight gain from fluid retention
• Lack of appetite and nausea

Acute heart failure

• Signs and symptoms similar to those of
(An emergency situation that occurs when
chronic heart failure but more severe, and
something suddenly affects your heart's
start or worsen suddenly
ability to function.)
• Sudden fluid buildup
• Sudden, severe shortness of breath and
coughing up pink, foamy mucus
• Chest pain if caused by a heart attack

2.2 Coronary artery disease and heart attack.

Coronary artery disease is the most common form of heart disease and the most common cause
of heart failure. Over time, arteries that supply blood to your heart muscle narrow from a
buildup of fatty deposits, a process called atherosclerosis. Blood moves slowly through
narrowed arteries, leaving some areas of your heart muscle weak and chronically deprived of

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oxygen-rich blood. In many cases, the blood flow to the muscle is just enough to keep the
muscle alive but not functioning well. A business man with such symptoms will have no option
than to affect the business entirely and this will cause business failure.

2.3 High blood pressure (hypertension).

Blood pressure is the force of blood pumped by your heart through your arteries. If your blood
pressure is high, your heart has to work harder than it should to circulate blood throughout your
body. Over time, the heart muscle may become thicker to compensate for the extra work it
must perform, enlarging the heart. Eventually, your heart muscle may become either too stiff or
too weak to effectively pump blood.

2.4 Faulty heart valves

The four valves of your heart keep blood flowing in the proper direction through the heart. A
damaged valve forces your heart to work harder to keep blood flowing as it should. Over time,
this extra work can weaken your heart. Faulty heart valves, however, can be fixed if detected in
time.

2.5 Damage to the heart muscle (cardiomyopathy).

Some of the many causes of heart muscle damage, also called cardiomyopathy, include
infections, alcohol abuse, and the toxic effect of drugs such as cocaine or some drugs used for
chemotherapy. In addition, whole-body diseases, such as lupus, or thyroid problems also can
damage heart muscle. If a specific cause can't be found, it's referred to as idiopathic dilated
cardiomyopathy.

2.6 Myocarditis.
Myocarditis is an inflammation of the heart muscle. It's most commonly caused by a virus and
can lead to left-sided heart failure.

2.7 Heart defects present at birth (congenital heart defects).

If your heart and its chambers or valves haven't formed correctly, the healthy parts of your
heart have to work harder to compensate. Genetic defects contribute to the risk of certain types
of heart disease, which in turn may lead to heart failure.

2.8 Abnormal heart rhythms (heart arrhythmias).

Abnormal heart rhythms may cause your heart to beat too fast. This creates extra work for your
heart. Over time, your heart may weaken leading to heart failure. A slow heartbeat may prevent
your heart from getting enough blood out to the body and may also lead to heart failure.

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2.9 Other diseases.
Chronic diseases such as diabetes, severe anemia, hyperthyroidism, hypothyroidism,
emphysema, lupus, hemochromatosis and amyloidosis also may contribute to heart failure.
Causes of acute heart failure include viruses that attack the heart muscle, severe infections,
allergic reactions, blood clots in the lungs, the use of certain medications or any illness that
affects the whole body.

The following ideas are suppose to be put in mind to avoid these failures by some organisations

1. One of the leading causes of business failure is lack of strategic planning. Creating a
successful business is a very complex situation. This is basically because of the fact that
businesses, in their core nature, are very complex. Strategic planning provides you with a
clear road map to success. This plan is a document, that is written out, that describes the
business that you want to develop. It starts at the most current status, and then creates
goals for many years into the future. This plan should outline the "who", "what", "when",
"how" of the business that you are trying to develop into success. It should cover your
expectations, your purpose, your goals, and the ultimate place you want your business to
reach.
2. As the needs of consumers change, the needs of the business changes. This is something
that should be expected and dealt with appropriately. It will be necessary to occasionally
restructure your original business plan in order to ensure that the aim for success is kept
fresh and realistic.

3. As long as you remain consistent and headstrong in your goal, you will be able to avoid
the common mistake of losing sight of the purpose and intent of your business.

4. Lack of proper exposure for the business is the next common mistake that many
businesses experience. It is important that you create a marketing and promotional plan to
ensure that potential clients and customers know that you are out there, and ready for
their business! If you miss the mark when it comes to promoting your goods and services,
you will quickly discover that you miss the mark on your financial success too! Get your
fliers up, create that website, and pass the word around! If you do this, you will find a
level of success like you never imagined.

5. Many businesses experience the complication of losing sight of their growth and costs.
This is because these two areas are not properly managed and monitored. If you want
your business to succeed, it is absolutely vital that you keep these two areas under

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 control. You should know what you are spending money on, and why you are spending it.
You should ensure that you are running your business at the lowest cost possible. The
best way to accomplish this is to ensure that your plans are properly aligned with your
finances. If you can accomplish this, you can accomplish anything!

As for health failures, the following needs to be done:

1. Stop smoking
Smoking damages your blood vessels, reduces the amount of oxygen in your blood and
makes your heart beat faster. If you smoke, ask your doctor to recommend a program to help
you quit. You can't be considered for a heart transplant if you continue to smoke.
2. Weigh yourself daily
Do this each morning after you've urinated, but before you've had breakfast. Notify your
doctor if you have a weight gain of 3 or more pounds in a day. It may mean that you're
retaining fluids and need a change in your treatment plan. Record your weight every morning
and bring the record with you to your doctor's visits.
3. Restrict sodium
Sodium is a component of salt. Too much sodium contributes to water retention, which makes
your heart work harder and causes shortness of breath and swollen legs, ankles and feet. For
people with heart failure, the recommended sodium intake is no more than 2,000 milligrams a
day. Keep in mind that most of this salt is already added to prepared foods, and be careful when
using salt substitutes. Some substitutes or "lite" salts contain a mixture of salt and other
compounds. To get that familiar salty taste, you may use too much of the substitute and
actually not reduce your sodium intake. In addition, many salt substitutes contain potassium
chloride. Too much potassium can be harmful if you have kidney problems or if you're taking
certain medications for treatment of heart failure. A dietitian can help you outline a healthy,
low-salt diet, but it's up to you to stick to it without exception.
4. Maintain a healthy weight
If you're overweight, your dietitian will help you work toward your ideal weight.
5. Limit fats and cholesterol
In addition to avoiding high-sodium foods, limit your intake of saturated fat, trans fat and
cholesterol. A diet high in fat and cholesterol is a risk factor for coronary artery disease, which
often underlies or contributes to heart failure.
6. Limit alcohol and fluids
Excessive use of alcohol can directly weaken your heart muscle or increase your risk of
abnormal heart rhythms that may worsen existing heart failure. Alcohol may also interact with
some medications used to treat heart conditions. Your doctor likely will advise you to abstain

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 from alcohol if you have heart failure. If you have severe heart failure, your doctor may also
suggest you limit your total intake of fluids.
7. Exercise

Exercise was once forbidden for people with heart failure. But, moderate exercise helps keep
the rest of your body healthy and conditioned, reducing the demands on your heart muscle.
Before you start exercising though, talk to your doctor about an exercise program that's right
for you. Your doctor may suggest a walking program. Check with your local hospital to see if it
offers a cardiac rehabilitation program; if it does, talk to your doctor about enrolling in the
program.
8. Reduce stress

When you're anxious or upset, your heart beats faster and you breathe more heavily. This can
make heart failure worse, since your heart is already having trouble meeting the body's
demands. Find ways to reduce stress in your life. To give your heart a rest, try napping or
putting your feet up when possible.
9. Sleep easy
If you're having shortness of breath, especially at night, sleep with your head propped up at a
45-degree angle using a pillow or a wedge. If you snore or have had other symptoms of
disordered sleep, make sure you get tested for sleep apnea.

3.0 Companies that have faced such failures are:

3.1 Pfizer Incorporated

In 1996, an outbreak of measles, cholera, and bacterial meningitis occurred in Nigeria. Pfizer
representatives traveled to Kano, Nigeria to assist in treating the affected population. An
experimental antibiotic, trovafloxacin, was administered to approximately 200 children. Local
Kano officials report that more than 50 children died from infection, while many others
developed mental and physical deformities. In 2001, families of the children, as well as the
governments of Kano and Nigeria, filed lawsuits regarding the treatment. According to the
lawsuits, Pfizer administered the trovafloxacin (now marketed as Trovan) without parental
consent. The lawsuits also accuse Pfizer of using the outbreak to perform unapproved human
testing, as well as allegedly under-dosing a control group being treated with traditional
antibiotics in order to skew the results of the trial in favor of Trovan. Pfizer denied these
claims, and subsequently produced an approval letter for testing from the Nigerian Ethics
Committee; the Nigerian government claims it is a fake.

In 2007, Pfizer published a Statement of Defense letter. The letter makes several claims
which deserve mention: 18 million in Nigerian Naira (NGN) in donations.

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 According to the figures given by their own defense, 94.4% of patients receiving Trovan
survived, while only 89.3% of untreated Nigerians survived. This is not a statistically
significant difference, i.e. the success of the drug was negligible and possibly circumstantial.

In June 1999, the FDA released a public health statement warning against the use of Trovan
except in life-or-death situations, due to high risk of liver failure. In some cases, liver damage
occurred after only two days of treatment

Conclusion

As you can see, there are many ways that you can succeed with your business, and avoid failure.
If you want to ensure that your business is successful, it is absolutely essential that you avoid
those things mentioned above - not creating a business plan, lack of experience, misuse of fund
etc. If you implement these steps to avoid business failure, you will quickly reap the benefits of
success that you have sown for yourself!

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References
Revised and updated illustrated oxford dictionary

"Pfizer 4Q Profit Falls but Beats View". Forbes. January 23, 2009.
http://www.forbes.com/feeds/ap/2008/01/23/ap4565943.html. Retrieved on 2008-02-14.

"Company Profile for Pfizer Inc (PFE)". http://zenobank.com/index.php?

symbol=PFE&page=quotesearch. Retrieved on 2008-10-01.

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