There can be many reasons for any business to go bankrupt. But before that, let me tell you why the case study of any business is read. According to harvard business school, Understand the business case for change and apply business models that create shared value. Those in the Harvard Business School Syllabus are only those 1st model case studies. Because case study prevents you from taking wrong steps in your business.
So let’s know which are the areas due to which some businesses go bankrupt. This is a case study, this is not a business but a case study of a country whose name is Sri Lanka. Let us know what was the mistake Sri Lanka did, due to which their entire country has gone bankrupt and at the same time, we will know which is the wrong step. Which we should not take into our business.
Reason for Bankrupt
Any large-scale relationship has a value of its own. If you do not have a good business relationship, then no one will help you in a pandemic situation. The same mistake was made in Sri Lanka with its neighboring country. In Sri Lanka, 28% people live from other countries. 7% is Christianity and 9% is Muslim and 12% Hindu Tamil live in Sri Lanka.
Sri Lanka had made its relations with these three countries very bad.
Christians: On Easter Day, more than 250 people would have died in the cathedral, of which 45 people were from abroad.Due to this the image of Sri Lanka had become very bad in the eyes of Christian people. Due to this people from abroad did not come to visit Sri Lanka. Due to the non-availability of visitors, the tourism business came to a standstill.
Muslim: Burqa was banned in Sri Lanka who were Muslim women.
Hindu Tamil: The Tamil people were subjected to very bad oppression due to which 4000 thousand people died. Because of this, India’s relationship with Sri Lanka had deteriorated.
Relationship can be a very good reason for any business to be bankrupt.
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If any businessman has any source of earning money then he thinks of the future and how much return it will give him in the future. But such is not the case with the Sri Lankan government. It is that due to the government being very illiterate, they never thought of the future. They had banned their imports, due to which Sri Lanka was not able to import from other countries. The people of Sri Lanka were suffering because of not taking the right decisions from the government.
Sri Lanka had a debt of 7 Billion Dollar due to not taking the right decision.
Any business is bankrupt only when its management is not good. Something similar happened with Sri Lanka. Sri Lanka’s government staff was managed by more than half the people of the same family. The Prime Minister of Sri Lanka used to take wrong advantage of his position, he used to give any post to his uncle’s son, which he did not disturb.
- Relationship: The internal policy should not be done in such a way that the external policy may face any problem. If this happens, then the image of the company gets spoiled at the international level, due to which no other company gives loan.
- Educated: Even after forgetting, do not sleep your company in the hands of a person who is not educated. Because one decision of that can ruin the fortune of your company.
- Management: Any person should give his position when he deserves.
I hope you have got all the information related to Bankrupt.
Thank you for your mints.