STRATEGIES FOR SUSTAINING BUSINESS IN MARKET SLOW DOWN…

STRATEGIES FOR SUSTAINING BUSINESS IN MARKET SLOW DOWN… PROBLEMS FACED DURING SLOW DOWN CANCELLATION OF ORDERS STUCK WITH HIGH COST INVENTORY MARKET SIZE REDUCED INCREASE IN BAD DEBTS INCREASE IN WORKING CAPITAL REQUIREMENT DELAY IN FULFILLING FISCAL OBLIGATIONS INCREASE IN GLOBAL COMPETITION

PROBLEMS FACED DURING SLOW DOWN

CANCELLATION OF ORDERS

STUCK WITH HIGH COST INVENTORY

MARKET SIZE REDUCED

INCREASE IN BAD DEBTS

INCREASE IN WORKING CAPITAL REQUIREMENT

DELAY IN FULFILLING FISCAL OBLIGATIONS

INCREASE IN GLOBAL COMPETITION

STRATEGIES FOR SUSTAINING BUSINESS IN MARKET SLOW DOWN… SOLUTIONS… JUDICIOUS USE OF FINANCE 1. CUTTING COSTS IN OPERATIONS 2. PUTTING EXPANSIONS ON HOLD 3. INVESTING IN CUSTOMER CARE AND NEWER TECHNOLOGIES EFFECTIVE INVENTORY MANAGEMENT 1. REDUCE INVENTORY HOLDING TIME 2. MONITOR PRICES OF KEY R.M. VERY CLOSELY STRICT MANAGEMENT OF CASH FLOW 1. GOOD RECEIVABLES MANAGEMENT 2. UP TO DATE CASH FLOW INFORMATION

SOLUTIONS…

JUDICIOUS USE OF FINANCE

1. CUTTING COSTS IN OPERATIONS

2. PUTTING EXPANSIONS ON HOLD

3. INVESTING IN CUSTOMER CARE AND NEWER TECHNOLOGIES

EFFECTIVE INVENTORY MANAGEMENT

1. REDUCE INVENTORY HOLDING TIME

2. MONITOR PRICES OF KEY R.M. VERY CLOSELY

STRICT MANAGEMENT OF CASH FLOW

1. GOOD RECEIVABLES MANAGEMENT

2. UP TO DATE CASH FLOW INFORMATION

STRATEGIES FOR SUSTAINING BUSINESS IN MARKET SLOW DOWN… SOLUTIONS CONT’D… LOWER COST OF FINANCE 1. PREPAY HIGH COST LOANS 2. REDUCE WORKING CAPITAL REQUIREMENT BY BETTER INVENTORY CONTROL AND BETTER RECEIVABLE MANAGEMENT INVEST IN CUSTOMERS 1. VISIT THE CUSTOMER MORE OFTEN 2. UNDERSTAND CUSTOMER NEEDS

SOLUTIONS CONT’D…

LOWER COST OF FINANCE

1. PREPAY HIGH COST LOANS

2. REDUCE WORKING CAPITAL REQUIREMENT BY

BETTER INVENTORY CONTROL AND BETTER

RECEIVABLE MANAGEMENT

INVEST IN CUSTOMERS

1. VISIT THE CUSTOMER MORE OFTEN

2. UNDERSTAND CUSTOMER NEEDS

STRATEGIES FOR SUSTAINING BUSINESS IN MARKET SLOW DOWN… SOLUTIONS CONT’D… INVEST IN NEWER TECHNOLOGIES 1. BE ON THE LOOK OUT FOR NEWER PRODUCTS, NEWER APPLICATIONS, BETTER YIELDS ETC. 2. THIS WILL RESULT IN MARKET EXPANSION, PRODUCT LIFE CYCLE EXTENSION, BETTER ROI EFFECTIVE PLANNING AND BUDGETING 1. EFFECTIVE PLANNING LEADS TO BETTER EFFICIENCIES 2. PROPER BUDGETING LEADS TO EFFECTIVE CASH FLOW MANAGEMENT

SOLUTIONS CONT’D…

INVEST IN NEWER TECHNOLOGIES

1. BE ON THE LOOK OUT FOR NEWER PRODUCTS,

NEWER APPLICATIONS, BETTER YIELDS ETC.

2. THIS WILL RESULT IN MARKET EXPANSION,

PRODUCT LIFE CYCLE EXTENSION, BETTER ROI

EFFECTIVE PLANNING AND BUDGETING

1. EFFECTIVE PLANNING LEADS TO BETTER

EFFICIENCIES

2. PROPER BUDGETING LEADS TO EFFECTIVE

CASH FLOW MANAGEMENT

STRATEGIES FOR SUSTAINING BUSINESS IN MARKET SLOW DOWN… SOLUTIONS CONT’D… IMPROVE MAN MANAGEMENT 1. INVOLVE ALL EMPLOYEES IN DESCISION MAKING 2. COMMUNICATE ON ALL IMPORTANT MATTERS 3. ENCOURAGE INNOVATION ACROSS BOARD

SOLUTIONS CONT’D…

IMPROVE MAN MANAGEMENT

1. INVOLVE ALL EMPLOYEES IN DESCISION MAKING

2. COMMUNICATE ON ALL IMPORTANT MATTERS

3. ENCOURAGE INNOVATION ACROSS BOARD

STRATEGIES FOR SUSTAINING BUSINESS IN MARKET SLOW DOWN… CONCLUSION… TO EFFECTIVELY SUSTAIN BUSINESS DURING SLOW DOWN MANAGEMENT SHOULD: BE PRUDENT AND JUDICIOUS WITH CASH EFFECTIVELY CUT COSTS BUT NOT CORNERS INTERACT MORE WITH CUSTOMERS BE ON LOOK OUT FOR NEWER TECHNOLOGIES PLAN PROPERLY KEEP EMPLOYEE MORALE HIGH

CONCLUSION…

TO EFFECTIVELY SUSTAIN BUSINESS DURING SLOW DOWN

MANAGEMENT SHOULD:

BE PRUDENT AND JUDICIOUS WITH CASH

EFFECTIVELY CUT COSTS BUT NOT CORNERS

INTERACT MORE WITH CUSTOMERS

BE ON LOOK OUT FOR NEWER TECHNOLOGIES

PLAN PROPERLY

KEEP EMPLOYEE MORALE HIGH