Turning Business around in the 21st Century

 

 Many business today operate within complex and competitive environment and likely to suffer the crisis throughout their life cycle and this could lead to the failure or require recovery.Therefore it is very necessary to proffer solution in accordance with business structure, economic circumstance and financial availability.

   Business today may required turnaround  due to fundamental challenging such as lack of fund, ineffective personnel, poor products/services, and weak marketing strategy which may lead to business distress and therefore will require a recovery strategy.

• Management Diagnosis

  The success and failure of any business in the 21st century will depend on the management team capacity which is crucial for the good health of any business. Therefore management need to put together good business plan worthy of business growth, profitable and sustainable. A diagnosis of business performance and position should be regularly be review to determine the real state business affair.This may call for review of products/ services offer, internal and external factor. Hence, Customer satisfaction and attractiveness are the main objectives of such diagnosis

• Redefine business

   There is a need for  a continuous review of the business system and structure in an attempt to revive the entity.The business information should be made more relevant in line with current economic and social issues.A review of internal and external factors are critical at this stage.A valuable and necessary tool to be use will be SWOT analysis or PEST analysis.

• Financial Management and Restructure

     Funding is crucial to the survival of any business or else no business will not exist..For a business recovery strategy to succeed, management should have access to short term finance that will support daily business activities and maintain operation while the fortune of business being turnaround.Cash-flow, supplier and customer goodwill are also crucial for the business turn around.Management should adopt strategy to cut down irrelevant expenses and either outsource or eliminate non-value add activities,sale and credit policy should be review regularly to ensure adequate retention of cash flow.Another option that will unleash cash is to dispose off non-performing asset. The restructuring of business is necessary at this point, therefore a combination of financial and business restructuring will help turnaround  business successfully

• Human Resource Management and Productivity

   Recovery strategy require efficient and effective  skill labour workforce to enable its achieve is vision and mission. Every committed and dedicated workforce should be willing to exceed expectation during recovery period.Management should set goal, monitor individual performance, motivate and reward them accordingly.This will spur them to sacrifice for the higher  business productivity.Given each staff opportunity to own share in the company may motivate them to achieve greater financial results.
   

• Diversification and Technology

  There is increase change in consumer taste ,preferences and demand.It is therefore crucial for every business to monitor business trends and innovate in order to succeed in a competitive world.A marketing and market demand make a business, hence any negative change in the market demand will invariably affect the business operation.A shift in market demand and reduction in products/ services preferences are major factor that can plug the business into crisis.

  Technology have become major platform for business to reach the market at no cost.It has become necessary for business today to embrace technology as way of innovate their products and services. Most business have gone digital and have created online marketing and sale platform that enable them interact with their customer and transaction business online as well. .Internet has also change the way of doing business.

• Conclusion

     Although it might take longer period  to turn business around  and bring it back to its fit, this may due to the certain factor that need to be consider.The key issue necessary for considerations as most business recovery strategy are management, finance, marketing,general operation ,Human resource management and productivity.A strategic approach have to be follow in order to fulfill the business objective.

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2.                                                                                                               By: Akinola Taofeek
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