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The scenario in the business world is changing at a great speed, where organisations will find difficulties to scope.
10 important points when considering business transitionClearly define your goals, objectives and timeframes. It is critical you understand 1. what your priorities are as it will influence any subsequent plans.Consider what you will do ‘post transition’. Do you want to stay with the business, 2. make an immediate departure, or somewhere in-between? Is retirement really for you? Many ex-business owners feel stranded post sale.Have up-to-date information. Robust financial information should be available for the 3. previous three to five years, as well as your ‘year to date’ management accounts. A detailed business plan and quality budgets or forecasts will assist you and your advisors gain an accurate view of your business prospects and range of values.How do I kick-start the process? Start by engaging a qualified and professional advisor 4. to help guide you through this complex process - a small investment in advice at the outset makes for a much smoother process. A specialist advisor can form a team working alongside your existing advisors (lawyers, accountants etc) and will provide the specialist advisory and transactional services required to achieve an optimal outcome.Develop a tailored transition plan. A specialist advisor can help match your objectives 5. with a tailored transition plan to get the job done and help you to achieve your goals.Who is going to buy my business? You may have some ideas already and your transition 6. advisor should have a network of qualified buyers – national and/or international - actively seeking quality business opportunities.How do I get the best price? It is essential you have realistic expectations of the value of 7. your business – your advisor should have access to data on current relevant transactions and an understanding of the factors that will drive value. With your advisor, you can work out what practical actions you can take to maximise value – e.g. mitigating business risks (IP protected, systems documented, managing key person risk, key supplier and customer contracts etc) and how to communicate value to prospective purchasers. Use of different deal structures can bridge value gaps.How will I protect confidentiality? Remember confidentiality can never be guaranteed 8. – your best protection is agreeing a suitable approach to releasing confidential information with your transition advisor especially where information may be released to competitors who are often potential buyers. At a minimum, always use a comprehensive confidentiality agreement for all prospective buyers.Prepare yourself for a process that can take 6 months or more. The sale process can 9. often be stressful and time consuming. Your transition advisor should support and guide you through the process to ensure that you are not distracted from running the business in the meantime.Who will help you with your financial affairs, both during and post transition? 10. This may be your existing advisors – you will need to consider what the most tax-efficient structure is to maximise sale proceeds and how you will subsequently invest them.
Whether an organisation markets its goods and services domestically or internationally, the definition of marketing still applies. However, the scope of marketing is broadened when the organisation decides to sell across international boundaries, this being primarily due to the numerous other dimensions which the organisation has to account for.
S. Carter defines marketing as:
"The process of building lasting relationships through planning, executing and controlling the conception, pricing, promotion and distribution of ideas, goods and services to create mutual exchange that satisfy individual and organisational needs and objectives".
The long held tenants of marketing are "customer value", "competitive advantage" and "focus". This means that organisations have to study the market, develop products or services that satisfy customer needs and wants, develop the "correct" marketing mix and satisfy its own objectives as well as giving customer satisfaction on a continuing basis.
"Strategic Marketing" was born. The focus was shifted from knowing everything about the customer, to knowing the customer in a context which includes the competition, government policy and regulations, and the broader economic, social and political macro forces that shape the evolution of markets. In global marketing terms this means forging alliances (relationships) or developing networks, working closely with home country government officials and industry competitors to gain access to a target market. Also the marketing objective has changed from one of satisfying organisational objectives to one of "stakeholder" benefits - including employees, society, government and so on. Profit is still essential but not an end in itself.
Strategic marketing according to Wensley (1982) has been defined as:
"Initiating, negotiating and managing acceptable exchange relationships with key interest groups or constituencies, in the pursuit of sustainable competitive advantage within specific markets, on the basis of long run consumer, channel and other stakeholder franchise".
Whether one takes the definition of "marketing" or "strategic marketing", "marketing" must still be regarded as both a philosophy and a set of functional activities. As a philosophy embracing customer value (or satisfaction), planning and organising activities to meet individual and organisational objectives, marketing must be internalised by all members of an organisation, because without satisfied customers the organisation will eventually die.
The big change in labor markets and production inputs and high cost and means of production will lead to difficulty keeping up companies to these rapid changes so companies must change their strategies, plans and objectives - flexible and realistic plans - in order to continue to provide products and services under these big changes
Business cycles have four phases: booms, downturns, recessions, and recoveries. During booms; economic output increases quickly and businesses tend to prosper. Eventually, a booming economy reaches a peak point where economic growth rates start to fall, leading to an economic downturn. Downturns lead to periods of economic stagnation or decline called recessions. Also, the point at which economic growth rates begin to increase again is called the trough of the business cycle; a period of economic recovery follows the trough and leads back into an economic boom.
The downturns start with as turning point from Prosperity to Depression is termed as Recession Phase. During a Recession period, the economic activities slow down. There is a steady decline in the output, income, employment, prices and profits. Business loses confidence and become pessimistic… reduces investment, business expansion stops, stock market falls. Typically, an increase in unemployment that causes a sharp decline in income and aggregate demand. Recession, generally, lasts for a short period.
Depression Phase: There is a continuous decrease of output, employment, income, prices, profits, and fall in standard of living… The features of Depression are: Fall in volume of output and trade. Fall in income and rise in unemployment. Decline in consumption and demand. Fall in interest rate. Deflation. Contraction of bank credit…The aggregate economic activity is at the lowest, causing a decline in prices and profits until the economy reaches its Trough (low point).
In modern macro-economic models, since ‘cycles’ are nothing like waves. A ‘boom’ does not make a ‘bust’ more likely, or vice versa. Modern macro-economic models assume that what may looks like ‘cycle’ is actually ‘trend’… Some economists argue that the business cycle is an essential part of an economy. Even downturns have their role to play– they tends to ‘shakeup’ the economy and weed-out weak firms– creating greater incentives to cut costs and more efficiency. However, this view is controversial and other economists argue that in recession, even ‘good’ firms can fail– leading to permanent loss of productive capacity…
Thank brilliant Miss Ghada Owaida agreed to answer them
Mr. Achmad Surjani has explained it in a crisp yet effective manner.
full agree with all expert answers above
Agree with most of the expert answers here
Became the business world, a quick transition between the countries of the world as a result of the phenomenon of globalization, becoming a money and manpower capital an easy transition and without barriers as a result of free trade law between states, there are no barriers in the business world today and the guide number of multinational companies today more Adeddamn local companies as well as wider and their capital became more than the budgets of states
Such transition is affected by:
1. Globalization and international financial shift
2. Involvement of technology and new trades
3. Gap between needs and resources
4. Crisis and politics
5. New needs
For businesses, if they are not able to adopt new system and techniques, they will be left behind !
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