Posted on January 22, 2012
European leaders have warned of a difficult year ahead, as many economists predict recession in 2012... so the BBC reports. They go on to say that growth in Europe has stalled as the debt crisis has forced governments to slash spending. The leaders' New Year messages came as leading economists polled by the BBC said they expected a return to recession in Europe in the first half of 2012.
However, it doesn't have to be all doom and gloom.
Whilst the inevitable chaos caused by recession has a tendency to push organisations into retreat this is not always the case. Did you know that iconic companies like:
Disney, CNN, MTV, Hyatt, Burger King, FedEx, Microsoft, Apple, Gillette, AT&T, Texas Instruments, 20th Century Fox, IBM, Merck, Hersheys, IHOP, Eli Lilly, Coors, Bristol-Meyers, Sun, Amgen, The Jim Henderson Company, LexiNexis, Autodesk, Adobe, Symantec, Electronic Arts, Fortune, GE, and Hewlett-Packard
were all founded during periods of economic recession.
One definition of chaos suggests that it is the uncertainty sparked by uncharted territory, economic recession, and bubbles of opportunity. We seem to phase in and out of this chaotic state... a state of randomness and disorder. The ebb and flow happens in an almost natural way, almost mimicking what occurs in the natural world. This system of natural governance that blends the characteristics of chaos and order is known as the chaordic state.
The good news is that we can use the significant power of these chaordic forces to help with generating revenue and growth, so important for our future economic survival.
One such way could be to embark upon a business transformation programme, another might be to merge with or acquire another company. All of these require change... something that we have to accept is a permanent feature of the world in which we all live.
So what is business transformation - well, it's all about aligning people, process and technology to achieve some previously agreed significant change. These three areas also feature as being important when considering an integrated approach to the associated areas of governance, risk and compliance within an organisation.
Our Business Transformation Consultant comments on the importance of making sure your desired significant change is relevant and appropriate ie is your business strategy "fit-for-purpose" and correctly aligned with what is going on in at the operational level? It could be that in order to achieve your strategic objectives you need to merge with and/or acquire another company... or it could be that organic growth is what is needed.
The conclusions from a recent Economist Intelligence Unit report on business transformation highlighted that the ability to manage change effectively is a great competitive advantage. It goes on to make the point that external crises such as what we are experiencing at present help to drive change in organisation and provide a "burning platform" for change, but emphasises the importance of the people-related challenges.
Several years ago, an earlier white paper from our own consultancy promoted the benefits of using a ten-step approach for generating prosperity from the deteriorating economic conditions at that time. It is encouraging to see that recently, the Kepner-Tregoe consultancy has been recommending a similar approach in their paper about coping with uncertainty in the business environment. The key message from both approaches is the importance of developing a clear business strategy and then maintaining strategic directions and integrity when times get tough.
Posted on January 17, 2012
A business plan is an objective plan that aims to move the company forward, allocates its resources, focus on key points and prepare it for opportunities. However, not all businesses realize this. A business plan should be always developed and followed to ensure competitiveness and growth.
What is a Start-Up Plan?
This type of plan usually contains a summary, mission statement, key point for success and marketing strategy. A start-up plan would initially look at the company's present condition and current resources to evaluate if the business is worth pursuing or not. The basic of a start-up plan can be developed to become a business plan later on.
Are there any Standards for a Business Plan?
A normal business plan would follow a set of elements as shown below. These elements may vary according to a company's priority or whatever element it is that they are developing. For instance, investors are keen in evaluating a company's management style while banks will look at the company's financial and credit history.
Company Description - The Company should have an officially authorized establishment (i.e. an office) with all the legal permits at hand. This is to authorize the company in doing its ventures. Company description also notes the history of the business by outlining its beginnings. This would be a good indicator on how the business performed in the past and how it can perform better in the future. Professionals for cost control ventures offer expense reduction franchise programs that help companies asses where their business is likely to go based on their past experiences.
Product (Service) and Market Analysis- Products and services will essentially be the centerpiece of the company's business because this will allow consumers to know what the company is selling. Marketing strategy pertains to customer needs and market climate. Expense reduction analysts franchise owners would tell companies to not solely focus on customer benefits but also to be sensitive to the costs of incurring losses and gains while doing business.
Management Team and Financial Plan - These two elements would comprise the "lifeblood" of the whole business. Management team would include the key positions and responsibilities of each company member from the highest to the lowest ranking employees. Financial plan covers all the losses and gains, cash flow balance and break-even analysis. Cost reduction franchise services can help companies account for every smallest detail in their financial analysis and make sure that every dollar is monitored. Such cost reduction strategies not only focus on lessening the impact of high expenditure but also adapt better practices for saving.
Posted on December 12, 2011
Choosing solar panels is something that should be done with a bit of forethought and though the price of solar panels will often be a factor in your choice, you should not base your decision to purchase a certain solar panel on this alone. Solar panels should be priced on size, brand, durability, longevity and the size in watts. Choosing on cost is not wise. In some cases, these panels may not have the necessary certificates to receive government dispensations, or may not last long enough to be a good investment.
Longevity of solar panels is very important. Solar panels have a certain lifespan and so if you are involved in the feed in tariff system you will want to ensure they last long enough, so you receive the cost of your investment back. Solar panels ideally should pay for themselves through the feed in tariff in 10 -15 years. However, some panels don't last this long meaning you lose money on the investment. Make sure you have panels with a warranty of 20-25 years so you can get your money back for domestic or business electricity.
Choosing a top-end brand with a healthy financial situation and years in the business means you are also ensuring the company will honour the warranty as they are in operation. Purchasing panels from companies who may go bankrupt over the next 20 years leaves you in a poor situation should anything go wrong. Choosing a good retailer and panel company means you are insulated from such problems and can produce domestic and business electricity.
Panels are priced in dollars per Watt, and so a 100W panel would be expected to be half the price of a 200W panel. A panel of 200 W would expect to produce that many Watts in an hour under ideal conditions. The larger the output of the panel - generally the larger the panel in size. Ensuring you have enough Watts for your businesses need is a necessity in this case. Read more...