Management In Downturn

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Management In Downturn

  1. 1. MANAGMENT IN DOWNTURN Laura Algo
  2. 2. HOW FIRMS TRY TO BOOST THEIR LIQUIDITY? <ul><li>Citigroup plans to cut off 75 000 jobs. This is 20% of the bank’s workforce. </li></ul><ul><li>Wolseley will have to cut 14 500 jobs. This is 18% of the firm’s total. </li></ul>
  3. 3. HOW COMPANIES PREPARE FOR HARD TIMES? <ul><li>Harrah’s Entertainment, a Las Vegas based casino, is trying to persuade creditors to renegotiate its payment terms to avoid a default. </li></ul><ul><li>General Motors (GM) is lobbying Congress for a bailout after burning trough billions in the third quarter of the year. </li></ul>
  4. 4. HOW TO RAISE CASH? <ul><li>Sell businesses no longer central to a firm’s strategy. </li></ul><ul><li>Let less cash go out of the door. </li></ul><ul><li>Strech out the payments on bank debt. </li></ul><ul><li>Take a hard look at how cash runs in areas such as finance, human resources and technology. </li></ul>
  5. 5. HOW TO RAISE CASH? <ul><li>General Motors and Ford sold shares in Suzuki and Mazda. By selling their stakes back to the Japanese firms, they raised a total of 770 million. </li></ul><ul><li>Aloa, an American aluminium giant, Target, an American discount retailer, and AkzoNobel, a Dutch firm that makes paint, have recently cancelled plans to buy back shares using what was previously viewed as excess cash. </li></ul>
  6. 6. AREAS TO CONSIDER TO RAISE CASH <ul><li>Working capital and day-to-day operations under a microscope. </li></ul><ul><li>Look for money from inventories. </li></ul><ul><li>Keep your suppliers. </li></ul><ul><li>Reorganise your working-capital. </li></ul>
  7. 7. <ul><li>THANK YOU! </li></ul>

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