What will Strategic Adjustments do for your business success (and why you should really think about it)

We need to address the elephant in the room. And in a business sense, this has everything to do with your current business strategy operating in the external environment.

Why? This is because at the heart of every business success it is driven by its own strategy. What your strategy goals is (Objectives), where you choose to compete (Scope) and how you will compete (Advantage) has been predetermined by you AND IT WILL DEFINE YOUR BUSINESS FUTURE.

The key question is; how is your business strategy getting on? If it is going on very well (congratulations!), but if not (be encouraged!), do read on…..

Business strategy is the strategic initiatives and thought-through plan of a company to create value for the organization and its stakeholders.

The reality is that at times, Strategic Adjustment(s) is required by the business to remain focus and continuously gain a competitive advantage in the market.

So, when your business is stuck, it is important to consider if any strategic adjustment is needed.

The following highlight some of the key areas where strategic adjustments can be a breakthrough to your business success.

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1.??Revenue – Is your revenue model still effective and relevant to your current business environment? Many businesses have been operating under the same business model ?despite changes in the marketplace and at times they wonder why their revenue is reducing from period-to-period or not increasing as hoped for at all. A robust revenue model provides insights to how to booster revenue and suggest additional or alternative revenue models as well.

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2.??Cost – Is your cost well managed especially under the present inflationary conditions? How does your cost curve look like? Many businesses are being impacted by the escalating cost and some have very little choice to manage it. This can post serious consequences to the business. But if you have a dynamic strategic cost management model it will not only gives you the insight of your cost change but also anticipate future cost changes.

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3.??Profitability – Is your business profitability stagnant or even worse, declining? A decline in profitability can be due to either there is a reduction in revenue or increase in cost of goods/services, or both. If it is not due to your revenue model, perhaps your cost is going the other way, or vice-versa. But beyond this, profitability management should also be reviewed from the perspective of product lines, customers segment and geographical demand. Each can provide additional insights to profitability management adjustments.

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4.??Markets – What kind of market does your business operates in? Has it change in the last 3-5 years and does the changes affect your normal profit line? Were you observant to these changes and what is the marketplace is telling you? Many businesses know something is going on but not deep enough to know what it means, till a bit too late. Today marketplace change faster than before. And if you have built internal intelligence that monitors your marketplace, there should be the initial signals that warrants your attention.

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5.??Customers – Is your customers’ base still strong and relevant? Do you see any concerning alarm bells? Many businesses are so fixated to their current customers base that it fails to react to potential market threat and slow to expand into other segments. It is important to have constant short and mid-term business review to gauge both existing and potential customers’ base. Be ready to adjust and explore new sources of customers. ?

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6.??Sources of advantages – What are your sources of competitive advantage? Is this advantage still relevant and providing your business the edge that you require? Have many competitors caught up with you? Or is technology threatening your business continuity? Perhaps it is time to conduct a competitive analysis to understand the relevancy of your present competitiveness and consider if it needs some tweaking to remain robust. When was the last time you did a review on your source of advantage?

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Finally, Strategic Adjustments is a deliberate strategic step which is a necessary exercise to stay ahead of your present game. No business can remain the same for long and only the paranoid will survive. Businesses that are too complacent due to past successes will soon find itself out of place very soon.

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