We Know and Used To Handle The Issues

Supply Chain Shift: Unbalanced Export & Import Impacts

In current fast-changing trade environment, the shift of supply chain has been creating numerous uncertainties to the businesses where they have to deal with different stakeholders whom they are not familiar with. The relatively low efficiencies and underperformance faced during the new era are risking the businesses to handle its both short-term disruptions and long-term goals for sustainable growth.

The new business cycles of sales and procurement become more challenging as cross-border business cooperation is widely required. It is generating unexpected deficit and uncontrollable issues of export and import between the businesses at different countries if there is improper strategic plan takes place, particularly during the existing geopolitical tension era.

Transformation Challenges: Changes of Business Model, Location and Cultural Differences

The new business cooperation into a new international market would generate unfamiliarity and transitional needs towards the current business operation, be it cultural barriers, business approaches or linguistic issues. Moreover, the unexpected financial hurdles of the business processes are challenging where resilience is vital. The potential partner & market insights are the most important elements to business success. Finding an appropriate partner with significant local market insights and dynamics is fundamental to cross-border business cooperation which could be more useful than standalone marketing research and analysis, particularly for sales and distribution channels, and logistic condition and potential arrangement at the new land.

There are questions of the value of products and services offered and how these would contribute positively to the culture and the country. The business shall understand the customs, culture and due respect of the new market.

Capital, Liquidity and Human Capital Issues

Some businesses are in turmoil as purchasing power continues to deteriorate due to drop in sales and payment collection, raising concerns that its liquidity issues may spread further to devastating extent. Further, the changes of specific stimulus initiatives and measures by government and financial institutions (including the tightened requirements) have further jeopardizing the liquidity position of businesses.

Following the global pandemic and overwhelming development of AI, the wave of resignation, retrenchment rise of human capital costs, remote work and technological disruption, have became the critical management issue to how the companies create and preserve its long-term value. Most of the businesses are currently facing the skill shortages, succession and retention planning, and sustainable human capital costs while assessing the trend as AI, quantum computing and geopolitical risks, as the human capital is the vital element for business strategy formulation, business judgment and decision making in achieving business successes.

Business Defaults & Special Situation

Strained operations and high refinancing costs were among the key factors for business default. The business operations and assets funded by the businesses are in stake to meet its expected return or recovery. For instance, the sizeable infrastructure, plantation and natural resources related investments in developing countries are facing the relevant issues. Last but not the least, the global defaults are widely soaring which are creating domino impacts to the regional economies.

Compliance, Feasibility & Sustainability: ESG

Both the importance and costs to champion the compliance, sustainability and ESG needs are high. There are businesses seeking for increased disclosure of factors which would contribute to its long-term success while considering and quantifying the related costs involved. The global trade relations and supply chains are inevitably linked with the geopolitical tension reshape, where the businesses are pledging substantial efforts in initiating its compliance, sustainability and ESG strategies with respect to safeguard its businesses and optimize its investment.

TRUST

Trust building requires significant time and efforts with solid actions and proofs, it might take tremendous efforts on resilience and competence to rebuild or recover it. Once the trust-destroying event occurs, accountability to acknowledge and handle the root-causes with solid actions and timeline are important. Apart from it, the integrity is most vital to respond to doubts and criticism. Walk the talk, positive, and confident-inspiring are key elements to build the trust and win the long lasting business relations.