The Difficulties of Having Poor Cashflow

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  • Created by: Rachel
  • Created on: 14-11-12 17:51
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  • Difficulties of Poor Cashflow
    • Lower the cost of supplies
      • Bad quality products
        • Worse reputation
          • Lower customer satisfaction
            • Lower chances of repeat purchases
    • Might have to make some employees redundant or reduce pay
      • Employees that are left will be unmotivated and worried about their own job security
        • Worse service to customers
          • Unhappy customers = lowered customer satisfaction
    • Some of the firms'stores might have to be closed down
      • Less competitive
        • Higher risk of takeover
    • Training of employees may have to be cancelled or delayed
      • Risk of employees doing things wrong or treating customers wrongly
        • Lower customer satisfaction
          • Lower chance of repeat purchases


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