Critical Business Issues

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Every business has to face multiple issues every day, ranging from simple replacements of burnt out light bulbs in the office to the design of attractive products. As you can understand from the aforementioned examples, certain issues are highly significant, since they can determine whether a business succeeds or fails. These are the so-called critical business issues, the top priorities of every company's agenda.

Critical Business Issues Defined

  • Critical business issues are the most important items of an organization's agenda and are directly connected to its success. For example, the creation of an attractive advertising campaign is a critical issue, as well as the elimination of a budget deficits. Another factor which distinguished critical issues from lesser ones is their urgency: A burnt lamp may remain for several hours without significant effects on productivity, but a budget deficit must be tackled immediately.

Lesser Issues Becoming Critical

  • Lesser business issues can become critical when they deteriorate and or start affecting the organization's productivity directly. For instance, a slightly annoying squeak coming from the wheels of a plumber's van is not a serious issue; he can still drive to his business appointments. However, when the squeak becomes a howl, it is critical for the plumber to get it fixed, so that his business activities are not affected by a faulty vehicle.

Source of Critical Issues

  • Business needs define most critical issues: Increased production costs make an expenses reduction plan a critical issue, while fierce market competition renders thorough marketing plans a necessity. However, external factors can affect the existing critical issues or even add new ones. For example, new legislation on waste disposal and green policy can demand organizations to change their habits and quickly devise new method to minimize their environmental footprint. In addition, a change in consumers' behavior, such as the end of customer loyalty -- as the AARM reports, introduces new critical issues for companies to tackle.

Recognizing Critical Business Issues

  • A key to an organization's success is the ability to analyze data of the market and identify critical business issues it is about to face. Ignoring critical issues by regarding them as unimportant can have serious effects on a business. For this reason, companies rely on the help of business consulting firms to ensure all issues are given the attention they deserve. A prominent example of such work is DT -- Global Business Consulting's reports on global business trends and critical business issues.

References

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