Entrepreneurship

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Critical issues in Business Management.

Keller and Kotler (2012), describe critical issues as the key symptoms that are threatening an organisation’s competitive advantage. Every business manager should endeavor to have a list of the critical issues and determine the organisation’s options.Identifying and prioritizing the ‘critical issues set’ assists in resolving urgency, impact, relationships between (perhaps) multiple symptoms and Root Cause.

Nahrung, (2009) singles out profit making as one of the most important critical issue in determining the worthiness of an alternative action as most organisations go into business to make profit. Most decisions are directly or indirectly linked to profitability. Some of the profit oriented critical issues noted by research are: future costs and revenues, break-even points, opportunity costs, contribution margins, taxes, turnover, sales, and market share. Included should be how these critical issues impact workers, local economy, supply chain and things like the attitudes of customers.

Analysis of alternatives

Askew (2013) and Kohler and Keller (2012) concur that a section for analysis of alternatives is key to success. They say, a careful evaluation of advantages of each identified Strategic option should be listed, in relation to each critical issue.  These can be presented in form of a Table or a list. Nahrung, (2009) pins analysis to a careful evaluation of the pros and cons of each strategic option. The course of action for an organisation is determined by picking the alternative that stands out. This can be a demanding process when organisations are large and include financial considerations. Small business units can use their agility to increase their competitiveness against large organisations by quickly identifying the critical issues, find solutions and implement.

I hope this will help you thinking in this direction as you progress in your business ventures. Comments are welcome.

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