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It’s been These were difficult yearsFor people who own or manage businesses. Lockdowns halted entire industrial sectors worldwide, making profitable businesses lose-making while many smaller businesses went under.
Many companies will be hoping for a return of some kind of normality following COVID. However, there are strong signals that a resumption of how things were isn’t on the cards any time soon. The world seems to have entered into an agreement. Age of accelerating great crises.
The climate crisis was already a major disruption of the world’s existence long before COVID. Extreme weather events. Just as some countries had declared war against COVID won, the invasion in Ukraine has not just reshuffled international geopolitics but also led to a dramatic uptake in energy and food prices. knock-on effectsThere are many other sectors.
One day, COVID, the Ukraine war and the climate crisis may all be over. But there’s unlikely to be a point of general stability any time soon. Humanity is Pushing environmental limits to breaking point, risking further crises – whether in terms of disease, conflict or natural disasters.
Businesses must change how they work. This includes responding to current crises, being more prepared for future crises, as well as addressing their role in creating these crises. These are three types business models that companies should consider adopting immediately.
1. Respond to crises
Reactive business models are needed that can react to crisis situations. This adaptability will naturally lead to a survival element in which organisations do whatever they can to minimize negative effects.
This means aligning management practices with the “new normal” after the crisis, instead of holding on to the old normal from before. If necessary, such models should also include a crisis mitigation element to address the wider negative consequences of the crisis.
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It seems that fossil fuel titans like BP, Shell, and BP may be beginning to do just this. Shell and BP have been long under attack. Contributing to it knowinglyThe climate crisis and Counteracting shiftsThey are now adapting to the crisis forces by implementing more sustainable energy systems. These forces include, but are not limited to, the global trend towards sustainability. The gradual elimination of fossil-fuel vehicles.
These companies have begun to transform key elements of their business. One example is repurposing existing assets. Petrol station operationsIncorporate an electric vehicle charging infrastructure. Expect them to make disruptive greening changes as they ride the waves caused by the climate crisis.
2. Be prepared for any future difficulties
Businesses need to accept that the current business reality is not one based on stability. These characteristics are characterized byUncertainty, volatility, complexity, and ambiguity are all possible.
Value propositions refer to the benefits a business can offer its customers, employees, or the community. To build business models for this new world, you need to establish value propositions that are sustainable over the long term and can be adapted to any crisis situation. It also requires being flexible and quick to adapt.
For example, a business could offer products and services that address fundamental, timeless needs like food and security and not short-term superficial desires like the latest technological fads or fast fashion.
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Haier, a Chinese electronic goods company, is a good example of such an entrepreneurial model. The company is Specifically tuned in to an ever-changing world, aiming to deliver “products that respond to the constantly changing needs of the modern home”. For instance Haier respondedTo Asia’s air pollution crisisBy integrating an air conditioner and purifier.
Alongside this, Haier employs its unique “RenDanHeYi” (or 人单合一, which freely translates to “one single person in unity”) way of working. Haier is essentially a group of smaller, semi-autonomous businesses. This gives individual freedom and collective responsibility for self-organised micro-entrepreneurs.
This makes Haier flexible, agile, and resilient. Haier can respond to customers’ changing needs and situations by operating as a network micro-enterprises. This allows the business to evolve as each crisis unfolds. These features have allowed Haier to succeed. It works exceptionally wellDuring and after COVID crises.
3. Help prevent future crises
Businesses can prepare for the future better by creating models that are specifically designed to prevent or mitigate future crises. Although COVID, climate change, and the Ukraine crisis are still problems, many business models are designed to prevent other crises from happening.
Some companies, for instance, are adopting business models that encourage Peace and reconciliationTo prevent future armed conflict, Ex-members of the Colombian guerrilla groups building adventure travel businessesThese documents reveal the hidden side of the conflict. Collaboration can help you reconcile.
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It is difficult to manage businesses in an era of rapidly accelerating crises. It is possible to transform business models and managerial methods in order to manage current and future crises and even mitigate future ones.
