Needed Action Based On The News!
Prices and Supply go Hand in Hand. These issues seem to be different, but they really are not. Inflation is caused by an increase in demand as consumers and businesses are motivated to buy now because they believe prices will continue to increase.
Current fuel prices are driven by changes in the global economy and the Russian invasion of Ukraine. The baby formula shortage is a result of a plant shutdown and government’s weak response.
How Do We Handle the Issues?
- Escalating Prices
- Shortages
You must assume these issues will not be a short-term phenomenon. What can we do to counter these issues and produce a profit for 2022?
- I recommend that it is time to call your “team together.” Your current business plan for 2022 is now obsolete.
- Re-open the SWOT (Strengths, Weakness, Opportunities, and Threats analysis) produced in December and review each detail.
- Determine how each updated CATEGORY – should change because of the current economic conditions.
- Develop a new set of goals and objectives based on the new SWOT to “steady the ship” and assure yourself that your organization will meet its profit goals.
- Now set the plan into action – A new Execution Plan for your New Strategic Plan for the balance of year.
This new plan may require you to change the product/service offering, staffing, hours of operation, and selling/closing of key real estate.
Amazon announced in the WSJ this week that they will be subleasing and renegotiating leases of 10 million sq. ft of warehouse space due to declining demand.
Locally, Lund’s and Byerly’s Grocery rethought their strategy of home delivery of groceries. They chose to outsource their home delivery offering by using “Shipt,” a delivery service owned by their competitor Target.
These huge companies have taken the “Needed Actions Steps to Assure Their Owners” that they will meet their profit goals for 2022.
Evaluation of the economic news is important to determine what steps you need to take to safeguard your profit.
Consider collaborating with Elanstrategic for the evaluation of that news and the implementation of the steps need to reach your success.