Question

Customer service failure is an avoidable circumstance in business operations, especially in the service business. However, business failure can be minimized if not eradicated in some ways. It's okay to make mistakes after all we are all human. However, when the business messes up make sure to apologize for the rare event. Always remember to own the mistakes instead of blaming elsewhere, and make sure not to do it again.

Answer 1

Business failure can occur due to poor management, unproductive workers, or strong competition. Changes in market demand and supply can also impact business operations, leading to failures. Although challenging for those affected, such exits are considered necessary for a dynamic market economy.

Step-by-step explanation:

Business failure is a multifaceted issue that can stem from various factors such as poor management, unproductive workers, and intense competition both domestically and internationally.

In the context of a market economy, businesses are subject to the conditions of demand and supply, which can lead to price fluctuations for inputs and outputs. These economic pressures can provoke a business's exit from the market, affecting employees, investors, and managers significantly.

The U.S. Small Business Administration's statistics from 2011 highlight the cyclical nature of business entries and exits within the economy. While these exits can be devastating for those directly involved, they are often seen as a necessary element for a competitive market to adapt, thrive, and remain customer-oriented with low costs and innovative products.