 Many companies fail to appreciate the fact that the most critical orders are the

ones to which a company says ‘no’. Explain.

- Critical orders offered to companies are very crucial to the point that it may either
improve or deteriorate the system of the company. When these critical orders are
met, they are able to provide customer satisfaction which potentially leads to the
promotion of the companies goods or services, therefore gaining a competitive
advantage. When these critical orders are not met, it may leave a poor review to the
company as they are not able to provide the critical orders in due time or they may
have been able to provide these orders but with poor quality, which then results to
giving the company’s competitors an opportunity to have more sales. There are a
variety of reasons to why a company says “no” to the most critical orders. One of
which is that companies knows the limit of their capabilities, they decline these orders
as they know that they will not be able to provide the orders in a given amount of
time. Some companies are also knowledgeable of their resources available which
may cause them to say “no” to critical orders as they know that they do not possess
enough of the resources to satisfy these orders. Another reason is that companies do
not want to commit in taking the risks of critical orders as they are not confident
whether they could meet the critical orders’ expectations when it comes to their due
time and the quality of their product or service. Companies should be assertive when
it comes to taking risks as they are able to give companies enlightenment or
knowledge from the experience of either winning or losing to that specific risk. When
the company “loses” to the risk, they are then able to come up with innovations and
changes in the system of their company as they have experienced the problems
encountered with the risk taken. On the other hand, when the company “wins” to the
risk, they are able to grasp the opportunity for their company to grow exponentially
and may lead to achieving their corporate aspirations. Another reason to why
companies may decline critical orders is that they are not willing to take the pressure
of these orders to the operations system of the company. This is due to the fact that
these critical orders may potentially overwhelm the functions within the company to
the point that it may disrupt the efficiency and effectiveness of the company’s
functions. To bring everything to a sum, most companies fail to appreciate the fact
that the most critical orders are the ones to which a company says ‘no’ is due to a
variety of reasons, most companies are not confident of their capabilities to fulfill
these critical orders with quality or in meeting the deadline. Most companies are
knowledgeable of their inputs such as their resources, they mostly decline critical
orders as they do not have enough resources to produce the quantity of these critical
orders. And lastly, most companies do not want to take the risk of taking these critical
orders as they may not want to deal with the consequences of taking such risks of
critical orders.