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The dangerous vicious cycles

If a company is not handling their growth challenges they can face what we call a vicious cycle, which is a chain of negative events reinforcing themselves. The situation can spiral in a downward loop, becoming increasingly worse with time.

A vicious cycle can result in revenue and profit deterioration with limited value creation, due to i) outdated insights, methods and solutions, with inefficient operational processes, ineffective marketing and brand building, ii) Mediocre products and weak channel partnerships, iii) Demotivated employees and unhappy customers, or iv) Negative impact on the environment, society and communities.
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Companies experienced vicious cycles

Many great companies have had problems maintaining their growth due to mismanagement of one or several of their business functions. This has led to business failure or financial challenges for a period of time. The chart below shows a few examples of such cases, organized by the reason for the vicious cycle (relating to the reasons named in the tags)

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