21st century is not a time to ‘batten down the hatches’. Instead one needs to embrace the changes and manage the business through these times of unprecedented business uncertainty. It is suggested that managers revisit their business plans, undertake some scenario planning and also look for new opportunities as competitors scale back. It is important to assess the businesses vulnerabilities as well as ensuring that all aspects of the credit control system are functioning effectively.
September 2008 has witnessed a period of unprecedented economic turbulence and instability. This uncertainty is affecting the entire globalized economy; it is affecting people all across the world. Years of consistent economic growth in the 21st century have given way to rising unemployment, increased costs, reduced disposable income and a greater number of risks. There is a sense of helplessness businesses are currently experiencing.
The Critical Business Factors are:
• Product
• Service
• Pricing
• Market
• Competition
• Environment
Based on these factors in the value chain activities, following steps can be taken to survive in the uncertainty and unpredictability of the business in this tumultuous 21st century.
Value Chain Analysis in brief:
The value chain is a systematic approach to examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980). The chain consists of a series of activities that create and build value. The value chain framework quickly made its way to the forefront of management thought as a powerful analysis tool for strategic planning. Its ultimate goal is to ma ...