Key questions for dealing with dynamic competition
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UNDER the dynamic market situation resulting from the economic slowdown and higher competition from new players, companies have to struggle to survive and pass the difficult time.
We may see some companies disappear from the market through acquisition by others. Or some companies might have to scale down to maintain their competitiveness in core businesses.
To cope with relentless challenges, companies have to continue exploring strategically critical areas that need high attention and look for new opportunities that can help contribute to business growth.
The following are key questions that need clear answers from management when companies have to deal with an unexpected crisis.
What are our top priorities?
With limited time and resources, companies need to focus on the most important things first.
To prioritise issues, management needs input from all concerned so that the right priority can be identified. Each function within an organisation may have a list of its own priority. The companies have to identify the high-impact ones that really need to be dealt with before an implementation plan can be developed and executed accordingly.
What do we need to stop doing?
Besides the to-do list, there are some things that need to be stopped. Some practices hinder the team from moving forward, and can cause inefficiency or even de-motivate people.
Eliminating operating waste is crucial in improving the performance of the business. It is necessary to identify all these items through open-minded discussion and with real support from top management. Decisive actions then need to be taken to get rid of all the unwanted practices.
What are our long-term projects?
Companies need to allocate sufficient resources regularly in developing and making progress on long-term projects. They can be investment in a new sales distribution channel, installation of new systems, new training programmes, and a succession plan for key management.
It is necessary for companies to keep on investing on important projects followed by proper review, modification or adjustment.
What are the action plans for the above?
To ensure that all issues get attention and are implemented until the result is delivered, a clear action plan needs to be developed and approved. Many great ideas cannot make a positive impact on the companies’ performance in time because they take too long to be materialised.
Persistent follow-up and monitoring are important to the success of the action plan.
Obviously it is very hard to forecast the economic situation. The only solution companies may have is to look into their own organisation and try to make sure that everything is in good shape.
There can be some things to do and not to do within the organisation. Employees at lower levels working on details can see those things clearly, but management may not.
Therefore, it is worth questioning the strategic directions to deal with the dynamic competitive challenges before it is too late.
Yanyong Thammatucharee, the writer, is head of international finance and operation at Central Marketing Group. He can be reached at [email protected].
