The market
There are external factors that affect businesses and how CXOs are compelled to make decisions to avert any short- and medium-term effects. Market-related effects are impacted by many factors, and this list is by no means exhaustive but only a glimpse into some of those issues.
Uncertainty about the future
If we all had a crystal ball or the ability to have knowledge of the future, it would help to weather the storm of change, but more importantly, thrive under such conditions. Alas, those prophetic abilities are in short supply, but there is a serious point to the uncertain future. It remains a constant threat to organizations’ ability to deliver their services and products to market.
A business must determine ways in which to temper the constant flux in demand – changes in the market that can and do divert the organization’s focus and can be exhausting and exacerbating. As the world becomes more uncertain, those organizations that can thrive under such conditions will have an advantage.
Trends
If we look at the last 3 years, during COVID-19, we can clearly see a surge of activity in conducting meetings remotely, with little or no travel. If we look at the impact of global warming, it can be seen as one of the direct causes of the increase in energy prices. The point we are making is that any trend has a cause and an effect.
In a similar fashion, whatever the trend we see, whether induced by technological advancements, environmental factors, or global health-related, it forces a shift in demand and supply, which invariably impacts the organization’s ability to react.
Glocalization
According to Encyclopedia Britannica, the definition of glocalization has become more relevant than at any time before, where regional and global synergies are reflected at local levels. There has been a shift in developing global products and services at a global level that have local brand recognition, making them more relevant to the local market. For example, KFC is a global brand with common products available, but at the local level, you will find market-focused products.
If we look at this through the lens of an organization, it is acclimatizing its products and services created for the global market for its local market presence by adapting them to local cultures. For example, Frito-Lay, a division of PepsiCo, primarily uses the brand name “Lay’s” in the United States and uses other brand names in certain other countries: Walkers in the UK and Ireland and Smith’s in Australia.
The impact of localization is global and increases the challenges of ensuring the continuity of a brand, its quality, and the supply of its products and services.
The supply chain
There is a lack of supply chain diversity and the risk of multiple points of failure when relying on a globally distributed just-in-time supply chain. These are often broken, rigid, and have a myriad of regulations, increasing the threat of geo-political or climate-related disruption, with increased costs to sustain those supply chains, and making them less predictable. How do businesses protect their supply chain from becoming disrupted?
