The Sunday Mail
IN today’s competitive world, every person who is doing business, be they be small or large, has an elementary idea about the customers they are dealing with.
Gone are the days when most of the customers were largely considered illiterate and foolish.
Nowadays consumers can easily judge between what is right or what is wrong and what is good or what is bad.
Businesses can no longer afford the luxury of obsessing for profit while ignoring the quality of the product that they will be selling; they run the risk of being the ultimate loser. Their product will not be purchased by anyone.
So, if one wants to excel in business, he has to respect the feeling of the consumer, while at the same time retaining an ethical inclination.
Today the success of a business is affected by several factors, and some of these factors include competition, global trends, politics and other social factors.
Typically, businessmen have to navigate all these and make a profit at the end of the day.
Well, one would hazard to say the business of business is still business but now there are several factors that have to be taken into consideration to make that business happen.
The world, which is now decidedly globalised, has become very competitive.
If a new investor enters the market and produce a better product, it means that more likely, the existing businesses will have to contend with losing their market share.
What has been happening in the fast food business in Zimbabwe over the last five years is one key example.
The emergence of new players has surely changed the dynamics of the game.
In some instances prices have been reduced, packaging has been changed and food outlets are increasingly being renovated like never before.
While the business remains that of selling chicken and chips, companies have had to innovate in order to withstand competing forces.
New players have inevitably had to prove their worth to consumers and existing players also had to prove that they are worth their name.
At the end, the ultimate goal is to make profits.
So, for businesses to remain relevant they must always ensure that they keep up with the competition.
International trends also have a bearing on how businesses operate. Most recently the slide in international prices of fuel has been changing both macro-economic and micro-economic dynamics for economies from across the world, Zimbabwe included.
Observably, different fuel stations have been retailing the commodity at different prices.
Local prices bottomed up to about $1,39 per litre. Consumers always go for the cheapest commodity.
Global trends play a significant role in business.
Businesses cannot afford to resist international trends; whenever prices are considered unreasonable by consumers, they naturally resist and the business naturally is prejudiced.
This is why local fuel stations had to eventually slash their prices.
But most often local businesses have been tempted to stray into politics. It is unhealthy. Businesses need to stick to business and leave politics to the politicians.
Dabbling into politics has its own unintended consequences for the business for it is not sustainable.
Well, while it might be true that there is an inextricable link between business and politics, it is wise to always resist the temptation of canvassing for business opportunities through politicians.
But in the normal business world, there might come situations were engaging politicians is unavoidable.
In such instances real businesspeople only discuss business within the strictest of parameters and tactically avoid sensitive political subjects. It’s that simple.
It’s definitely not easy being a politician, and dabbling in politics is really not an option.
Equally, environmental and other social factors also affect business. The business of mining is to extract minerals for sale.
However, one definitely needs to comply with certain environmental laws. You do not just wake up and start mining.
In Zimbabwe we have the Environmental Management Agency and many other statutory bodies that potential miners have to contend with for compliance.
As a business, the ultimate goal is to make a profit, but if mining activities can potentially affect the environment and communities, then it might not be possible to proceed.
On the overall, in every business there are always factors that affect operations, but successful firms usually focus on the fundamental principles of that business.
Some individuals try to be a “jack of all trades”.
If you are into farming and you are good at it, stick to farming and do not try to be in telecoms because that is not your trade.
You cannot make money in any industry. Just be obsessed by what you do, work hard and do it well.
At the end of the day the business of business is business.
Taurai Changwa is an Articled Accountant and ACCA finalist. He is managing director of SAFIC Consultancy. He writes in his personal capacity and can be contacted at [email protected] or visit our facebook page SAFIC Consultancy or whatsapp on 0772374784.
