Companies recalculating growth goals in volatile business environment

While companies are recalculating their organizational growth goals as a “bite-sized portion”, the growth trajectory cycle is shortening in an unpredictable and volatile business environment, top executives said. They are managing business plans within a short-term horizon, officials said, even as they said they believe in the medium to long-term India growth story.

Sanket Ray, President, Coca-Cola India, said, “For categories where commodity inflation is highly volatile, we are following on-the-spot strategies, unlike the earlier case.” “Our cycles are focused on short-planning cycles, which are broken up into quarters. We have to make room for volatility in demand. The system needs to be agile enough in supply chain and commodity planning to bring uncertainties into play.”

The company’s boards are also conscious of the challenges that CEOs face to achieve growth.

“Boards are giving great flexibility to CEOs who are leading their companies through pandemics, supply chain issues, employee absenteeism and environmental challenges to manage business goals within a short period of time. But the good news This is how growth can be achieved by continuously tweaking. Plan to work around uncertainties and stay agile,” said the chairman of a large consumer-facing conglomerate based in Mumbai. Chairman Suresh Narayanan said: “Due to the extreme volatility and uncertainty, we tend to take our plans in ‘bite-sized chunks’, scrutinizing as circumstances change and ‘bite-size’ if things get too unpredictable. applied in the module.

However, despite the challenges, companies are eager to take advantage of the growth opportunities India offers.

HDFC Securities in a report said: “High levels of retail inflation will continue to impact volume growth in the near term, which is being felt in rural and urban India. While there has been some easing in raw material prices over the past one month. (Palm/Raw/Coffee/Maize down 36/14/9/4%), we expect demand to improve with the decline. Due to global uncertainties, raw material pricing risks remain.”

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Companies are aware that despite inflation and supply chain issues, India is still a growth market compared to the rest of the world. In addition, organizations need to be flexible and agile and, while they have long-term goals, goals and execution plans may no longer be the same.

The CEO of a large steel company said, “The post-Covid business environment is a dynamic and unpredictable one and organizations are aware of it. There is a pause, reflective and planning approach while not giving up on growth.”

According to a United Nations report, India is still the fastest growing major economy, even though the Ukraine conflict continues to affect the global GDP. India is projected to grow 6.4% in 2022, slower than last year’s 8.8%, due to high inflationary pressures and uneven recovery of the labor market curbing private consumption and investment.