Recession solution

Demand reduction, scarcity of cash and confidence: any organisation in recession conditions:

  1. The problem in recession conditions is negatively geared confidence and investments, resulting in a lack of funding and, consequently, demand.
  2. The intuitive solution is to cut costs, cut back on advertising, reduce staff and, in some industries stop trading all together.
  3. The consequences are a vicious cycle of diminishing confidence, cash and cash flows.
  4. The counter-intuitive solution is to reduce the investment batch size, increase the cycle speed and redeploy resources and capital to advance synergistic ingenuity in meeting the changed customer needs – using option-rich frameworks, solutions and building blocks, of course!
  5. The prosequence (inevitable good result) is dramatically higher productivity and ingenuity resulting in dramatically increased profitability which can be capitalised on as the recession eases.

 


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