The Forces That Control Your Produce Business

The Forces That Control Your Produce Business

There are external forces that can unexpectedly disrupt daily business operations and create operating difficulties. These outside forces cannot be controlled.

A company must focus on its internal operations by managing its business within its own parameters. Companies must react, take ownership, and achieve profitability by concentrating on the internal forces they can control in order to manage growth.

Leading Forces at Work

A company controls its own destiny by managing the business it operates within the guidelines it sets for success. These guidelines are typically outlined in a business plan that includes clearly defined sections and specific job responsibilities for individual members of management. It is imperative that those who carry operational responsibilities have a clear understanding of the forces that separate internal controls from external ones.

Below are some of the leading forces that play important roles in business:

External Forces (Uncontrollable)

Customers: Customers shop where they choose and buy what they want. You cannot physically pull people off the street and force them into your place of business.

Competition: Competitors operate their own programs and set their own retail strategies. Each rival company runs its business as it sees fit.

Economy / Stock Market: Economic conditions fluctuate based on business performance, consumer behavior, and global events.

Weather: Weather can be predicted but not controlled. Warm, sunny days allow customers to travel easily and spend money, while storms keep customers—and their wallets—at home.

Technology: Advancements in technology, including artificial intelligence, equipment, and materials, continuously force change. Technology will always evolve, and businesses cannot stop it.

Government: All laws, regulations, and rules must be followed. Companies have no alternative but to comply.

Wars and Terrorism: These events are painful, dangerous, and damaging, often altering business conditions and contributing to reduced sales.

Internal Forces (Controllable)

Advertising and Marketing: Smart, well-planned spending can entice consumers and increase shopping interest.

Pricing: Retail pricing plays a significant role in determining where customers choose to shop.

Budgets: Companies make operational decisions based on defined financial budgets. Managing spending and controlling costs directly influence sales results.

Merchandising: Sales increase through effective product presentation and proper stocking levels. Conservative displays reduce sales, while aggressive displays can drive volume.

Cleanliness and Sanitation: Unkempt packing plants, warehouses, offices, and stores push customers away. Clean, fresh, and well-maintained facilities help retain customers.

New Products: Developing new product lines and innovative packaging ideas stimulates incremental sales growth.

Shopping Environment: Store interiors and overall shopping surroundings influence customer buying moods. Ease of shopping and good service are essential elements of the customer experience.

Food Safety: The growing, packing, manufacturing, shipping, warehousing, and retailing of food must be managed carefully to ensure safety and wholesomeness. Providing fresh, in-date products is a shared responsibility of suppliers and retailers.

Remember, businesses are influenced by both external and internal forces. There are many additional factors beyond those listed here, but the most important focus should be on the internal areas a company can control.

Pay close attention to the internal aspects of your business. When managed properly, they will consistently work to your advantage. External forces cannot be controlled, so do not waste time dwelling on them. It is up to each company to manage itself by paying strict attention to the internal areas that can be organized, monitored, and improved. No one else will do it for you.

Once again, every company controls its own destiny.