Every business organization small or big operate in an environment of competitors suppliers and governing agencies. Business organizations should be flexible to any changes in currency fluctuation, interest rates and economic slowdowns in the market.
Revenue of small business organizations depend upon several factors including price of products competition in the market and quality of products. A stable business owner will be having pricing power in order to maintain the production and selling even after increase in raw material cost and wages. At the same time in a highly competitive market business organizations will not be able to increase the product price. In order to increase the product price business organizations then rely on change in design of products for meeting the competition.
During a stronger economic growth phase, the cost of raw materials and salaries to employees will increase which will result in higher input cost. In the times of economic slowdown companies can lay off employees to meet the expenses while maintaining quality workers. Cost of the items from suppliers can also be negotiated during such times to avail discounts and operating costs.
Business organizations which anticipate and adapt to change usually become successful in all time. Thinking strategically with long-term goals help such companies to find balance in day to day operations. During times where there are uncertainty successful business organizations communicate effectively with stakeholders about the status of the business.