 |
| Business First: Making Business Competitive in a Global Market Place |
|
For some reason, companies want to wishfully believe that it is all going to go back to normal; to the way it was. Let me break the news to you: it will not! Not in the short term, and not even in the long term. We will come out of this stronger, better and more resilient. We are witnessing a global change the is sweeping the world, and that will have many implications on the way we will do business; on how much the government will be involved in our business; and how the global business arena will develop and create opportunities nationally as well as cross-border transactions. The market will not adapt to your way of doing business. It is the time, RIGHT NOW that each and every company needs to restructure and implement swift change. This will be the only way to succeed in the new world economy. Let me ask you a question: If I show you new markets and sales channels – are you ready to take advantage? Are you ready to grow your business? So many companies are complaining about dropped sales; having to cut expenses, lay off employees, and other actions that the media has been so wonderful in reporting and creating the drama. So now what? You laid people off, you cut cost, what is your plan? Take a reality check, reform corporate mindset and embrace the new reality – it’s the only reality available. Then, map out a plan to incorporate new solutions for these new opportunities. Restructuring, New Markets & Growth By 2020, 80 percent of the world’s consumer base will reside outside U.S. boundaries. These are our/your future customers, future partners, and the future path toward growth. Harness the power of yesterday’s advances in technology and communication and connect, starting today, with this vibrant global market. 10 Ultimate Directives for Improving Business in a Troubled Global Economy: 1. The biggest risk is not doing anything. By doing nothing you move from the driver’s seat to the passenger’s seat. Has it ever worked for you before? 2. Priority no. 1 should be the focus on growth. Not just survival. A fixing solution to a sinking ship will just delay the end. Are you willing to give up now? 3. History lessons are not a platform to a sound operation, especially not in this economy. Focus on the business, not just the bottom-line. Analysis of profit & loss statements and balance sheets will give a historical lesson but does little to understand the dynamics of the business. 4. Decisions have to be data driven. Whether you decide to adopt a certain strategy, or just change and enhance a product-line, do your homework. Get the facts. 5. Envision and articulate the ultimate picture of where you want your company to be, and stick to it. Yes, you will have to deal with change and unexpected turns, but at least you would know where you are heading and be able to stir the business wheel in the right direction and get back on the highway. 6. Need an antidote for shrinking domestic markets? Consider international expansion. It’s a fact. International expansion offers unparalleled opportunity for growth, increased sales, diversified markets and increased profit. Companies should be globally aware, and not necessarily active. It may not be the right time for everyone, but knowing about what is happening in the global scene, who of your competitors is expanding into the US, and what your options are - is crucial. 7. Manage risk and embark on the opportunities. Remember what got you to run a company to begin with. Where is that entrepreneurial spirit? 8. Evaluate your team and your own set of skills while being cautious of confusing ego and personality with performance. As I said once to a client: this is not a date. If your employee is a high-performer, sometimes this is enough to make a decision, as long as it doesn’t get in the way of the team. 9. Look around you and understand what business you are in, who is your competition, what are your choices, what your reputation is and how you can better position you company in the market. Remember the basics of running a business. 10. Plan, Commit, Action! Plan Now: What are the missing pieces in your business? What stands in your way to making decisions and taking action? A few suggestions: You may want to implement and follow a Blue Ocean Strategy. Industries rampant with competition have become bloodied arenas, or ‘‘red oceans,’’ and making a profit competing in them is difficult. For example, it is almost an impossible mission to compete with China in manufacturing when it comes to price. On the other hand, companies finding niches or unserved markets, typically by developing a new business model, are said to be swimming in a ‘‘blue ocean’’ that has no competitors. Assess how the following can set your company apart: innovation, sustainability strategies including social and environmental, new products and marketing strategies. Commit: Ultimately, a successful global expansion, or any growth strategy, is completely dependent on organizational commitment and management expertise in developing and executing a winning strategy. In an increasingly complex and competitive global environment exceptional skill is needed to evaluate the options and execute the actionable steps necessary to succeed. Should an organization fail, it may not get a second chance. So how about doing it right the first time around? Some reasons for strategy failures include unanticipated market and competitive changes, insufficient resources budgeted, lack of alignment, and poorly conceived business models; effective implementation requires aligning execution with the strategy, monitoring progress and demanding accountability, and developing realistic budgets. Action: Yet, when global expansion is approached with careful deliberation, cross-border expansion can be a rewarding growth strategy for any business. Instead of gazing with fear at the process, focus with excitement and starry eyes at the opportunities and plan for success. This is the only road to take. |