The internal factors to cause the failure of the company: Take China Evergrande Group as an example

Abstract

This thesis explores the internal factors contributing to the failure of large enterprises, taking China Evergrande Group as a case study. Founded in 1996 and once a leading comprehensive enterprise integrating real estate, finance, and other sectors with an annual sales scale exceeding 400 billion yuan, Evergrande collapsed dramatically, prompting an investigation into its failure beyond mere capital chain issues. The study identifies critical internal problems at Evergrande: severe financial fraud, chaotic internal management (redundant departments, low efficiency, and top management team deficiencies forming a “decline-deterioration” loop), and a massive debt crisis . Root causes include over-reliance on high-leverage expansion and failed diversification. Key factors for healthy enterprise development are proposed, such as clear strategic positioning and customer-centric product/service innovation. Corresponding suggestions for Evergrande include transparent information disclosure, business layout adjustment, and lean internal management. Limitations exist, including over-reliance on public data and limited generalizability beyond the case