"Companies under constellational pressure!" - This is what we heard recently from a high-ranking Hungarian executive working at an international multinational corporation. But what does this expression mean? In a metaphorical sense, the term "constellation" refers to the simultaneous appearance or alignment of certain signs or events. However, what could the leader have meant by being under "pressure," and what are these factors?
The leader formulated it as follows:
"We have two less experienced buyers struggling with a capacity shortage in a business unit, while experienced colleagues are no longer available. Hiring more skilled professionals from the market comes at a significantly higher cost. The American CEO aims to reduce labor costs by 20%, while the state is increasing the minimum wage, energy prices are soaring, and rental fees are also rising. Corporate processes are on the verge of collapse, and customers are unwilling to pay more. Currently, we feel there is no way out of this pressure under the constellation."
Indeed, companies in recent years have had to face and grapple with an increasing number of challenges, including:
- Challenges in the labor market
- The effects of the COVID-19 pandemic
- The breakdown of trade supply chains (chip and component shortages, shipping difficulties)
- Trade wars (USA-China, EU-China)
- Physical conflicts (Russia-Ukraine, Israel-Palestine)
- Suddenly rising energy prices, interest rates, and inflation
- Declining demand and economic growth
- Rapid technological changes (digitalization, transition to electric cars, etc.)
These factors collectively have reduced company revenues and increased their costs, leaving less room, opportunities, and time for businesses to adapt and respond to changing circumstances. It is not surprising, therefore, that businesses are becoming perplexed, with numerous questions arising:
- How can we manage the pressure under the constellation?
- What can our company do to adapt to the rapidly changing environment?
- What else might come, and how do we handle the risks?
In this complex and turbulent business environment, businesses need a kind of compass to navigate safely through the challenges and avoid running their ships aground. Through the use of digitalization, business intelligence, artificial intelligence, and modern technologies, a Business Navigation System can be developed to easily sail even under the "pressure of constellation," avoiding dangers and risks and ensuring that we always reach the designated port as the right destination.
