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Every day, there are companies closing down, firing people, cost-cutting. Is the business market in the UAE failing? Definitely not. There are a number of very important elements that cause a business to stop growing and eventually play.

Amongst the reasons, these four are common ones that come up in many cases.

  1. Lack of A Strategic Business Plan

The market across all industries these days are obviously very competitive and requires an excellent strategy for a company to stand out and thrive. Unfortunately, many companies lack this perspective and mistakenly go on with business operations without a clear Strategic Business Plan. Without a strategy and/or business plan, there is no focus among the leaders on how to position themselves in the market. Without it, the stakeholders won’t know how to stand out from competition and what to offer differently to stay relevant. There will be a confusion on which area to focus on.

And most of all, there will be no backup plan on how to respond to unexpected fallbacks. Instead of ‘solving’, there will only be ‘fixes’ into the problems that arise.

A Strategic Business plan leads the direction of the company. The gameplayers will have a roadmap towards achieving their long-term goals. They will also be prepared to respond on setbacks.

If your company is experiencing stagnation, looking at your long-term strategic plan is  very important step.

  1. Ineffective Company Management

More than a plan, execution plays the biggest part in implementing a strategy. Inefficiency in managing the people can have big impacts on their performance in working towards the goals of the company. For instance, these days, there is a high demand in digital knowledge among employees to keep up with the transition of the market from traditional to digital. If the employees are not given a proper training to acquire the necessary skills and training, they’ll have a hard time competing against other companies’ performance.

Employees have to be nurtured to consistently grow skills and knowledge. This is a boomerang that goes back to efficiently managing the needs of the company. In most cases, companies let people be for a long time. In return, they end up redoing the same things over and again. This type of system doesn’t allow the team to rise above what they usually achieve. Not to mention, it shortens their motivation to do better.

  1. Lack of Control System

Many companies neglect the need for an efficient control system. When companies are faced by problems, managers tend to have their lens focused on problem solving month by month. This takes their perspective of the big picture out. Without a control system, companies tend to deviate in buying, inventory, scrap, and deliverables.


  1. Undercapitalization

This must be on top of the reasons why businesses fail. Because of the above 3 reasons, companies find it difficult to generate profile to roll on the business. The inability to fund equipment, additional resources, marketing campaigns, needed to expand will stop the company from growing.


When a company is in a critical situation like stagnation, it is important to call in help of experts before more financial loss occurs. Expert advice, creation and implementation of an efficient strategy can pull a company from crashing into eventually being profitable.

If your company is experiencing these, speak to our expert consultants for a complimentary assessement. SDAC Consulting DMCC has been helping businesses with Corporate Strategy and Tailor-made Business Solutions for almost 10 years.

Click HERE to book a consultancy session or email us at commercial@sdacconsulting.com