When a crisis comes the first reactions of the High Administration or Managements normally point a: not to invest, reduction of expenses, reduction of personnel, preservative contraction of lines of products and measures. Are these actions the correct ones? The answer will depend on the final mission that persecutes the company that faces a crisis; defining crisis like one of the following: remarkable loss of participation of market, fall of prices, fall in volume of sales, entrance of foreign or but strong competitors, consolidation of a local competitor and/or loss of strong clients. That effect has the measures taken hastily before the crises? We can mention: Definitive loss of the participation of market, loss of credibility before clients and suppliers, loss of important human resource with experience and loss of opportunities of new businesses.
But that we do before a crisis? Many we are surprised when somebody says to us, if the market is depressed and his business is in crisis: you must invest. It is an expression that we can resist saying it: He is crazy? He wants that he invests today that I am in crisis to lose more? No, my dear reader. When a market is in crisis not only affects you to him, you affect the rest of competitors, therefore the one that develops the best STRATEGY of Crisis will be the one that survives and gains the market. (The unique exception is if you or the Administration already decided to leave the business). We mention some recommendable alternatives and actions before a crisis: 1.
It does not stop investing. Nontenth that invests enough, only that does not have to stop investing. It does not stop renewing the machinery, to update the systems, acquisition of equipment for new products or projects. 2. If Evale is going to dismiss personnel before the alternatives to relocate, to send of vacations, to cut the days, to work by honoraria, of such form that the human resource in which you already invested not loses.
But that we do before a crisis? Many we are surprised when somebody says to us, if the market is depressed and his business is in crisis: you must invest. It is an expression that we can resist saying it: He is crazy? He wants that he invests today that I am in crisis to lose more? No, my dear reader. When a market is in crisis not only affects you to him, you affect the rest of competitors, therefore the one that develops the best STRATEGY of Crisis will be the one that survives and gains the market. (The unique exception is if you or the Administration already decided to leave the business). We mention some recommendable alternatives and actions before a crisis: 1.
It does not stop investing. Nontenth that invests enough, only that does not have to stop investing. It does not stop renewing the machinery, to update the systems, acquisition of equipment for new products or projects. 2. If Evale is going to dismiss personnel before the alternatives to relocate, to send of vacations, to cut the days, to work by honoraria, of such form that the human resource in which you already invested not loses.
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