Creating more resilience by adapting the business model and business development
The long-hoped recovery phase after the Covid-19 collapse in 2020, seems to be moving further away with each passing day. In addition to the aftermath of the pandemic, we have to get used to a new reality due to the war in Ukraine. German companies are severely affected by the consequences of the Russian war of aggression. The biggest problems are as follows:
1) rapidly rising energy prices;2) steadily increasing shortage of supply and complete supply failures;
3) burden of missing gas supplies and therefore a supply risk;
4) disappearing sales, production and supply markets.
Most companies in the EU have never experienced such a rapidly deteriorating economic situation. After overcoming the initial shock and taking immediate measures, the forward-looking management of affected companies will start thinking about long-term and sustainable strategic realignment. Because one thing is certain: we must expect further crises and only resilient companies will still be able to be successful in the medium and long term.
In the current situation, companies can create more resilience by adapting their business model and business development in good time. The daily new challenges can only be fought by saying goodbye to old habits and acknowledging reality. Sticking your head in the sand will not move the economy forward. Now is the time to "reinvent yourself" and relocalisation.
How can you mitigate the effects of crises on your own company and thereby secure a competitive advantage in the long term? Management must now turn the following adjusting screws in the right direction:
1) identify and expand flexible and redundant supply chains2) identify and develop new sales, production, and procurement markets
3) reduce dependencies and dare more cooperation
4) seek geographical proximity instead of distance
In order to re-establish some kind of continuity, action must be taken now. One thing is clear: in the medium and long term, these measures will significantly change the business world and our lives. The only certainty that remains is uncertainty. We have to deal with that.
