Smart investors are always looking for a business that is about to move forward, but in this highly competitive corporate world, it can be hard to know which business to rely upon. The fact is that a business is only as strong as its weakest component, and one mistake can prove hugely costly to a company’s profits and its share price. Having a great product or service is the cornerstone of a forward moving business, but there are three other areas of a business that should not be overlooked.
Logistics And Distribution
A superb product will have consumers coming back for more, which is the key to sustained growth and profitability. Once the demand has been established, however, it’s essential that the distribution of the product flows seamlessly, as recent problems at the United Kingdom arm of KFC shows. After switching the distributor used to bring supplies of chicken to their stores, they found that the new supplier was having initial problems meeting the demand, and the result was the closure of hundreds of their stores. They found the hard way that good logistics and distribution needs to be at the heart of any retail business, and failure to do so can lead to dissatisfied customers and long-lasting reputational damage.
Building a brand that differentiates a business from others in its sector is a crucial step to boosting sales and creating customer loyalty, which is why effective marketing has to be a prime concern for businesses in all sectors. Maintaining a brand is just as important as building one, however, which is why customer support is one of the most important areas of a company. In this social media age, unhappy customers can instantly spread their discontent to thousands of followers, and if the problem is not addressed quickly it can become viral. That’s why smart businesses are investing heavily in customer service and ensuring that they respond to all complaints in a timely and positive manner, especially those made on social media platforms.
Spreadsheets and share prices show the results of a business, but what makes a business is the contribution of every single person that works in it. Skilled, hard-working and highly motivated staff are the difference between a company that is struggling to make an impact and one that is growing and moving ever forwards. Having a clearly defined and effective human resources strategy helps businesses retain their key staff and attract new workers with the right attributes, so it’s little surprise that human resources administrators are so highly prized by leading corporations. Studying for a human resources degree online can be a convenient way to enter this vital business role, so click here to learn more.
A company that pays close attention to its distribution and logistics, customer service, and human resources will have the robust structure needed to deal with the fast-moving world of business today. These are companies that prize forward planning above quick profits, and they are, therefore, in the best possible position to achieve substantial and continued growth, making them worthy of consideration for long-term investments.