Breakthrough in Recessionary Risks
You may lose your head but may not like to bow it. Risk perceptions have changed so as the returns and the negotiation process. Negotiations are heated and getting quite messy these days. Is it a time to be more diplomatic or appropriate? Recession has its greater impact when people lose faith in the system. Although system has not failed totally; businesses are not able to breathe peaceful transactions for sure.
Capital resources are funneled in safe projects after due negotiation, competition reduces for challenging and more profitable projects. And, where there is no competition opportunities to create blue oceans exist. Let's talk about some risky projects that are unheard in recent times, which can produce a huge return on your investments.
Are you invested hugely in inventories? What do you think your action plan should be to get rid of the pile you gathered all these days? My suggestion to all of you who are stuck with this pile is - not to find root causes as to why inventories got accumulated but to capitalize on it by pushing it to a totally new avenue or market place. You may scrap it or sell it at discount but there are other opportunities which can be experimented with.
Are you facing a good amount of challenge to recover your debts? My suggestion is to know more about your debtors and their businesses. It's a very good opportunity for you to explore your value chain. There are hidden opportunities waiting for you. You may like to re-engineer the industrial value chain and thus create higher value. Returns can be enormous.
Now talk about capacity utilization in your industry. Many times it is not easy to utilize your excess capacity when there is no demand. Now there are opportunities to create demand internally and thus remove bottleneck in your value chain. Many people are not able to deliver where as many find it difficult to utilize their capacity to fullest. Go grab the opportunity.
Are your investments valued below your purchase price? Many think that option is to minimize loses or wait till the arrival of good times. Now you are not realizing that the above options have hidden opportunities as otherwise it is impossible get rid of such investments. Let' take example of real estate. I think there is huge opportunity in real estate. Industry as a whole needs to understand that this is a right time to commoditize the product. Its time to sell volumes and increase supply as you may notice that all the Companies in real estate segment follow more or less the same strategy. It's a time for them to create new market space by following blue ocean strategy.
Capital resources are funneled in safe projects after due negotiation, competition reduces for challenging and more profitable projects. And, where there is no competition opportunities to create blue oceans exist. Let's talk about some risky projects that are unheard in recent times, which can produce a huge return on your investments.
Are you invested hugely in inventories? What do you think your action plan should be to get rid of the pile you gathered all these days? My suggestion to all of you who are stuck with this pile is - not to find root causes as to why inventories got accumulated but to capitalize on it by pushing it to a totally new avenue or market place. You may scrap it or sell it at discount but there are other opportunities which can be experimented with.
Are you facing a good amount of challenge to recover your debts? My suggestion is to know more about your debtors and their businesses. It's a very good opportunity for you to explore your value chain. There are hidden opportunities waiting for you. You may like to re-engineer the industrial value chain and thus create higher value. Returns can be enormous.
Now talk about capacity utilization in your industry. Many times it is not easy to utilize your excess capacity when there is no demand. Now there are opportunities to create demand internally and thus remove bottleneck in your value chain. Many people are not able to deliver where as many find it difficult to utilize their capacity to fullest. Go grab the opportunity.
Are your investments valued below your purchase price? Many think that option is to minimize loses or wait till the arrival of good times. Now you are not realizing that the above options have hidden opportunities as otherwise it is impossible get rid of such investments. Let' take example of real estate. I think there is huge opportunity in real estate. Industry as a whole needs to understand that this is a right time to commoditize the product. Its time to sell volumes and increase supply as you may notice that all the Companies in real estate segment follow more or less the same strategy. It's a time for them to create new market space by following blue ocean strategy.
Recession is not all evil, but brings with it a lot of opportunities too and the one who has proper insight can bank upon these opportunities at the right time and create value for the business. A real entrepreneur takes right advice to plan its resources and assets for creating higher wealth for himself and the society. Breakthrough is possible for sure.
Labels: Cost Reduction, Risk Management
posted by Narayan Mantri at
1:55 PM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home