Today, every organization is attempting to do more with less. Maximizing asset values have become the axiom of business in the short-term as no longer can executives go into the credit markets to find cash. Hence, what are the future prospects for business in 2010? Several fundamentals are emerging:
Are you planning for the same?
Many economists along with the latest economic indicators are showing more of the same with some forecasts not projecting any rebound until 2011. At the core of the issue is consumer demand. Consumers will remain hesitant given the jobs report and current foreclosure reports. This issue is further exacerbated by banks who continue to keep borrowing rates high to offset their debt losses.
Therefore, is your core business profitable?
With consumer optimism down can your business operate profitably at the current demand? Do you have sales plan to support your core customers? Does your operating model need to be changed? Do you need to divest yourself of customers with little or no short-term return?
Do you have a price advantage?
For the remainder of 2010 those that have a price advantage can leverage this advantage to gain key markets and customers. Any reduction in supply-chain expenses while maintaining quality will enable an organization to have a major competitive advantage this year.
Is your organization a good corporate citizen?
Today's tough economic times require a company to respond to emerging issues with a strategic approach that places corporate citizenship at the heart of business. Corporate citizenship is simply how the world views your organization in our new global economy. Good or bad. Those that have made corporate citizenship as a strategic initiative are clear winners especially with those who can control world opinions. Governments will continue to require greater adherence to expanded public policy from the private sector. Criteria for what is a good corporate citizen is promoted and maintained by: Corporate Responsibility Officer Magazine (www.thecro.com) in addition they also rank each year the top 100 corporations, www.thecro.com/files/CRO100BestCorporateCitizensList2009.pdf
Are your investors aligned for the long-term?
This is a sore subject and there has been an extensive analysis on the cause of the massive losses in the debt market. Now that you have this partnership, can you support the debt through operations? If yes, then what is the investor's exit strategy? If no, then can you both find an investment alternative.
How fast can your organization move?
Are you managing to a strategic plan? If yes, then how fast can you change tactics to achieve the milestones? Have you optimized all of your available assets? Do you have the team to accomplish your goal? Is the organization optimized? If you have a large war chest then a strategic acquisition strategy would be timely.
These are just some of major trends emerging for 2010 and organizations that are managing to these fundamental shifts will gain momentum as the economy improves later this year.
Peter Klinge, Jr. is a marketing and management executive, and Regional Managing Principal with OneAccord Partners, LLC based in Salt Lake City. A strategic marketing and communications executive, Mr. Klinge has more than 20 years experience with many of the top advertising/marketing services agencies, driving business success for major global brands and early stage companies, in technology and consumer categories. BIO
Contact: peter.klinge@oneaccordpartners.com