The health status of a company, as well as its competitiveness in the market is reflected in the results achieved in terms of strategy and objectives, as well as the challenges in the internal and external environment in which it operates.
The competitive position is highly dependent on the level, perceived by the market, of the provision of “competitive features”, which focus on competition and investment in the sector.
In this context, the creation of a “business value” is the result of the ability to properly identify, and to pursue in a sustainable manner, a planned goal, not only financially, but also those related to intangible assets, in the view of all. stakeholders (customers, shareholders, employees, suppliers and partners, community organizations).
Financial results, however, if you want to set up a project to achieve and maintain company competitiveness, are indicators of late, as they are related to past operations, and support the company’s short-term behavior. Therefore, it can be argued that completeness and reliance alone on economic and financial measures can create a significant risk of sacrificing “value” in the medium / long term to achieve immediate results.
Therefore the need to disseminate to all members to raise awareness that the real thing and how to increase company value depends largely on the accurate definition of future financial results related to the intangible assets mentioned above.
The ability to identify and / or ensure the quality of the selected objectives, to maintain and / or to adjust the “correct” targets during the work cycles, hence the primary objective that the company should set. This can be achieved by defining a “developmental stage” or a “competitive level”, in which it seeks, or imposes, recognition, appropriate adjustment of objectives, strategies, resources and processes, on the basis of circumstances and opportunities. that nature gives directly. The development category describes the business model and the type of competitive position selected, that is the direction the company aims to follow to grow and create value, as well as the identification of direct competitors and potential competitors, the types of products that will be competitive with them. by what rules.
Competitive design in SMEs is required to ensure the feasibility of operating options and strategies in relation to the aspects of the industry sector of which the company is a part, as well as the features of the external system in which it operates.
You should, of course, consider the stage of development and the previous position in terms of “achievements” and the results achieved. You should also be able to take appropriate remedial action, if necessary, without having to wait for annual results.
You can consider expressing the expected competition results in the pursuit of “best practices” in corporate government, taking into account the economic situation in which it develops the business, leading to the formation of the company following previous elections, and the National Economic Policy.
The algorithm, which is also based on analysis analyzed as part of the World Economic Forum (M.E. Porter), allows you to better align the aforementioned features.
The author of this article is Gennaro Quatraro, (a degree in Chemical Engineering from Polythecnic University of Turin) who has experience in industrial business management, initially as an officer within a firm, and then as an external consultant (Technical and Production Procedures, Organization and Quality.).
Academic teaching and seminar work (Unione Industriale Torino, ISVOR), Publishing Strategic and Strategic Management (SADT Analysis, BSC, JIT, DOE, QFD, Lean Six Sigma) and Competition for SMEs.