Known as an internationally successful philanthropist, Warren Buffet has a great understanding of how a business works. For this reason, he has written several essays that discuss much of the responsibilities of owning a business. Growing up in a family involved in local business ownership, I can identify with Buffet's concerns about business failure that he talks about in his essay, The Anxieties of Corporate Change. I saw two companies with similar functions achieve two completely different results in terms of profits, but I couldn't understand the reasoning. After reading Buffet's essay, which discussed the reasons for a company's economic loss, I support his thesis. He argues that a company's success, measured in terms of economic performance, ultimately depends on the type of business it undertakes. If a company is not in demand, no matter how hard you work to make a company financially successful in that field of business, you will not achieve your goal. Buffett's essay mainly discusses the decline his textile company had over the years due to lack of demand and how it eventually had to be shut down due to declining profits. He first supports his claim that lack of demand will cause failure when he claims that even when his company had well-qualified and successful employees in management, it was still not enough to be successful in terms of economic revenue. He states: “When the underlying economic conditions of an industry are crumbling, talented management can slow the rate of decline. Ultimately, however, the erosion of fundamentals will eventually overwhelm managerial brilliance” (56). Buffet claims that good management will not save a company from failure, it can only slow down the process of decline of the company... middle of paper... his statements with personal data experience, some might argue that every company is different. He lacks the evidence he would get by examining more than just two types of activity to support his thesis. Even though Buffet's claims are most of the time true, the data that can fully support him was not provided in his essay because he did not examine every business that has ever existed. Having had great financial success throughout his life, Buffet strives to share his wisdom throughout his essay. Some find Buffet's claims unreasonable and others agree with him. Experiencing similar concerns of business failure as Buffett once experienced, I have come to conclude, like Buffett, that a company's financial success is much more a function of the type of business it enters into, than how it tries to to do it. manage the business.