Assessing your business strategy in a changing world
Finding the right advisers is a key part of keeping a business strong, despite a changing marketplace.
“It is not the strongest of the species that survives, nor the most intelligent. It is the one that is most adaptable to change,” according to Charles Darwin. Although Darwin was referring to the evolution of mankind, this principle applies equally to many businesses that have managed to stay afloat through the financial difficulties of the last decade.
Managing change is vital to the success of a business at every stage of its lifecycle – from incorporation, to operations restructuring or transformation, to succession or exit. Finding adaptable business solutions and the right professional support are just as critical.
Shareholders and management teams around the world need to ask the same post-financial crisis questions: What’s the best direction for my company to take? How can we better adapt to a changing market? How can we improve operational efficiency? In order to improve a company’s competitive edge, the answers to these questions may lie in, for example, restructuring, business remodelling or acquisitions.
Assessing the status quo
Even if major change isn’t necessary or desired immediately, it’s critical to have an accurate assessment of the current situation, along with potential scenarios and prospects for the future.
The first step is to analyse the position of the business – and not just in terms of operations, finances, legal matters, HR or marketing. Business leaders should also be aware of the regulatory environment that may impact their operations and structure as part of their strategic planning, from both a local and international point of view. Business leaders need to have a complete, holistic view of their business if they are to successfully devise a strategic plan that will serve their specific interests over the long term.
Finding the right strategic partner
The ideal adviser will be a specialist who can work collaboratively with management and help with decision-making. It’s important to have an unbiased picture of the company’s current position as well as an achievable vision for the future. So it’s critical to carefully consider the best person for the job of creating a future strategy. People within the business will tend to view it with ‘insider’ eyes, so they may not be in the best position to do this.
Beyond having the right skills, an adviser should be able to identify and develop the optimal solution from a range of possible scenarios, choosing the one that best suits and serves both the interests of the shareholders and the market environment.
The adviser should be adept at using diagnostic tools as the basis of a strategic assessment and at getting feedback from each of the key areas of the business. A business valuation is often helpful for business leaders to position themselves in their market and gain an objective view of their status.
Although we live in an uncertain world, proper planning and having the right team in place can make all the difference in preparing for change.
For more information, contact:
VGD Ferencz & Partner Kft., Hungary
T: +36 1 225 7575