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How to Find Difference Between Good and Bad Company?


It is not easy to find difference between a good company and a bad company. The definition of good is different for different people. For example, from a consumer’s prospective, a company which provides excellent products and services is a good company but in the same company where the employees are treated 24*7 is a bad company for them.

To be a successful company, it should be motivated by something beyond success. It should focus on its plans and procedures even when they are planning to expand. The love for the business or love for the product is not enough to make them continue with their company through the bad times.

The business owners should be passionate about taking risks and make the company self supportive. A bad company ruins the morals of the people working in it. There are some list of areas where you can find differences between a good company and a bad company:

Good Bad Company DifferenceTop 17 Differences Between Good and Bad Companies:

1. Infrastructure of the company:

The infrastructure of the company defines the ideas and thoughts of the management and the aim of the company. A company is defined by the quality of infrastructure he has built up on his funds and for the development of his society and country ahead.

A company should have sound infrastructure base by fulfilling all the basic necessities of the users and third parties. Any basic thing like electricity or proper sitting arrangements or locality, being devoid will create a bad impression about the company to its existing as well as potential users.

A well established office predicts that the employer wants to run the organization well and for long run. A not so arranged infrastructure gives a bad impression about the longevity of the company.

2. Nature of the employees of the company:

The nature of the employees to the outsiders reveals the nature of the company and its policies. The employees who are happy with the work environment of the company will praise the company and its policies. But the employees who are not being able to cope up with the stringent work culture of the company might not give a good name to the company in front of the public.

The frustration level of the employees decides whether job satisfaction is there or not. An employee who is satisfied with his job conducts an impression that the company in which he is working is offering his equivalent to his efforts and thus it shows that the company looks after the welfare of the people working in it and for it also.

3. Marketing strategies:

Marketing strategies include better propositions and better sale promotion activities. Offering discounts and free products to improve sales and customer relationship creates a good impression of the company in front of the suppliers and customers.

Whereas, bad quality products and services and without customer care facilities, the customers are not happy with the product so it creates the impression that the company is bad.

4. Projected reports:

The projected reports of the company show the future prospects of the company. The rise in the income level shows that the company has some good projects in hand. The financial ratios of the company depict the financial aspects of the company.

It reflects whether the company has sound future planning ahead. Whether it has sufficient cash flows and working capital to carry on its business smoothly.

The third party user, mainly the banks find it easy to survey the projected reports and judge whether the company can be given loans and whether it has ample security to keep at bank for collateral purposes.

5. Time required completing projects:

Moreover, it is the duty of the company to finish the taken over projects in time. The delay in completing projects and lack of better facilities shows the immature prospects of the company. The company shall look forward to finish the in hand projects in the estimated time to show the efficiency of its members and management.

When the projects will complete in time and the management will start its actual production in time, the company and its employees will be said to be active but on the other hand if for unnecessary reasons, the projects get delayed and the upper pressure is constant, then the company is said to have been functioning badly and not according to its said objectives.

6. Net worth of the company:

Net worth of a company shows how much it is worth. People with substantial net worth are known as high net worth individual. Similarly, companies with a consistent net worth apart from their primary securities are considered accredited investors.

Other than those companies whose net worth is not consistent and may lead to fluctuations for unavoidable circumstances.

7. Plans and policies of a company:

Good companies and bad companies are decided upon their plans and policies they keep to their employees and clients. The policies which are not stringent and are easy to follow are being followed obediently.

But some policies kept by the company which are not easy to understand and not in the favour of the clients may be considered as bad policies. Policies which shall not assign any benefit to the employees will not be followed by them.

8. The employee turnover ratio:

The turnover ratio of the employees shows the willingness of the employees to work in the organization. The more turnover ratio means more employees want to leave the organization. This shows somehow that the employees do not find it compatible to work.

The adverse work culture makes the company bad. Whereas, if the turnover ratio is less, it shows that the company is full of employees who have years of experience working there. They have the hold in working and they are willing to work in the same conditions due to good and preferable working conditions.

9. The sales turnover ratio:

The more sales turnover ratio shows that the products and services of the company are being demanded by the outsiders. The higher the turnover rate, the more efficiently the company will be able to convert money into cash for purchasing good and turning them into profit.

The less turnover ratio reveals that he manufactured goods are just sitting on the shelves of the warehouse and are not willingly sold. The money is blocked in them and the functioning becomes difficult. These are the signs of a bad company.

10. The number of clients associated with the company:

The number of clients shows the amount of experience the company has in selling its products. The major clients list shows the expanding area of the company.

The more number of clients and more responsive clients reveal that the company is able to satisfy customer wants. The customers are happy with the quality and procedures. With this insight, it can be said that the company has achieved its goal.

11. The quality of clients:

The clients care more about quality of service and attitude rather than speed of the service. The marketing and sales executives do not want to get much involved in the customer service support. When the clients contact the company, they either complain for poor quality or rude services and that is the reason clients abandon the products.

The only reason being the executives provided fast services rather than good services. Timely services are very important to retain but in the long run due to remembrance, brand quality is also a very important factor.

12. Rapport and position in the market:

The rank a brand gets from the market is its position. The sales volume of the company in comparison to the sales volume of its competitors of the same industry tells us that the company is rising or stagnant. The market position of the product shows its future reference.

After ranking, the company and its management understand what it should do to create an image of the product to the targeted audience. When the buyer moves from gaining knowledge about the product, to buy them, the market rapport increases automatically.

13. Company management:

Good management explains the employees the need to do certain things and on the other hand, a bad management orders the employees to do certain things without any explanations. This shows management does not want to include the employees in decision makings and improvements.

Everywhere, there are top and down managers and similarly, command and control managers as well. An understanding of good management will make you breakthrough and then you can affect the changes in the performance of the company and its employees.

14. Financial of the company:

Company finances include annual income, balance sheets, cash flows statement and financial ratios. This published financial information provides the investors a thought to decide for the company.

The profit and loss statement shows the revenue and expenditure for the period concerned. The figures reflect the flow of smooth cash in the company.

When the monetary aspect is strong, the management is happy and the company can prosper, but when the figures are red, the management strives hard to improve them by putting pressure on the employees and clients.

15. Attendance in public seminars and arrangements:

The frequency of visits of the company in seminars and public gatherings lets itself include in the database along with million other companies. By interacting with other companies, the management feels that they should also develop a fully integrated and globalized profile.

These changes in the company shows that the company wants to grow and survive in the market. On the other hand, companies who are not interested in growth overseas or in house, reveals that the management does not have the fire in him to make it grow.

16. References:

The best example of reference shall be given by the employees. It is the employees who should be asked about the impact the reference of their company creates on people they meet.

A good impact means the company has a well-established position and its name can be referred for any work. When the employees of a certain company are not well treated, it is understood that the company position is not so good in the industry.

17. The top level management decisions:

Top-level management decisions affect the entire firm as they are responsible for the work performance of the whole organization. The company will survive in a good way where managers plan statistically and can utilize resources to develop unique goods and services.

In this system, every manager will be given rights to take their authority of decision. Where the top levels shall be busy with major crises, the middle-level management can handle the regular operation decisions. This shows that the company feels all the employees are a part of it.

Otherwise, the middle-level management will always complain of the waiting time they have to give to the top-level management and the harm it causes in the work.


Ultimately, Bad Company will deceive the good morals of the employees working in it. And when you have to start compromising your morals for your company, you will probably feel it’s time to change the company. Whereas, in good companies, you associate yourself with people of good quality and stay and prosper.

Good companies aim to fix the problem whereas bad companies warn to leave them. This is the only real difference between a good and a bad company.