If a manufacturer selling to large retail chains has two customers who represent 60 percent of the business, the company is obviously vulnerable. The loss of just one customer could put hundreds out of work and send the business into bankruptcy. For example, managing engineering operations for a company with two plants is much different than managing it for a 12-plant company. The same challenge applies to others in key positions in marketing, sales, operations and manufacturing. A company can overrun its ability to manage.
Some companies develop an adversary relationship with their financial lending institution.
Fearing that their loan or loans may be in jeopardy, they attempt to hide financial information from the bank. Phone calls are not returned. Reports stop being filed. Since money is the lifeblood of almost any business, this kind of lender relationship only leads to more trouble. Their egos tell them they can still pull the company out of its nose-dive.