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Basic Literature is a corporate satire blog, updated with satirical and humorous commentary on the corporate world, including career advice, management tips, business strategies and marketing tactics.
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How Companies Can Respond To The Crisis

Monday, March 23, 2009

I hate to play around with this issue during this unfortunate time, but I’m part of the ‘What You See Is What You Write’ concept. Open the newspaper and every 10 out of 10 articles in the business section will have negative words about the economy being used.



So, ladies and gentlemen, we’ll now look into how companies can react to the state of this economic recession.



Involves acquisition of other organizations.

In this time, credit will be tight, so humongous spending like this would be very difficult to maneuver. So no, this strategy is useless.



Working the ass to penetrate the market more. Multiplying the sales of the same product to the same market.

Nay. With employees morale at the bottom, no one wants to do more of the same work.



Develop new product for the same market or new market for the same product.

Absurd. The investment to develop new product or entering new market will take years to start paying back. In this time, as jittery shareholders analyze companies' financial performance on a quarter-to-quarter basis, this idea of a strategy is nonsense.



Get involved in something new for the company.

Too risky. Company would not have the necessary experience to play around with new unrelated business…with their plummeting coffers. Dismissed.


Retrenchment / Divestiture / Liquidation

Shrink the size of the company either through lay-offs, partial sale of company or complete selloff.

The only group of strategies which will require less investments, provide quick return, remove excess baggage, lessen the responsibility, silent the internal pressure, all while delivering the effective message for employees to step up their effort.

The drawbacks? Well..with this strategy, more people will be out of work, the social well-being will deteriorate, the economy will worsen…but wait..those have got nothing to do with the company.

So yes. This is the only strategy that will work in the current state of economy. Well of course other strategies will work too, but with the squeeze companies get from the economy today, being greed is the only option feasible.

So retrench, lay-off, let-go, cut down, reduce, trim, bring down..whatever the word is- it’s not what the economy needs, but hey..if you care about other people, join a charity. Not a corporate company.

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damn right! there is a great difference between company and a charity. And ..
hey boss .. what? oh no...don't... no please don't fire me..
you sob.
you.. :P

that's great article.......damn right! there is a great difference between company and a charity. And ..

Hmm....the comparison is interesting!

Smart companies will try and find new businesses in new markets but in old market where business hard to find some sort of cut backs will happen. Look at the Dubai property market construction companies have laid off worker in thousands.

Well, the strategy decided over here is what majority of company are using to deal the situation of Crises. They normally remove their non performing employee and adopt strict rules such as no paid leave,cut down in incentive and many other.

But I think this should not be the case, If I own any such company, I will not demote any of my employee as they are the one who are considered as a assets of the company, Rather I will trainee them and expect maximum output from them, further I will strengthen my marketing department. Quality checking department.

Hi, thanks for sharing a nice view point , hope the companies of the country should adopt these procedure to release from the debt.

Just give it a thought again...can demoting or firing employess help you regain your past good status in the market again.It might though help companies a bit financially, saving their finances, just this much.

Carte di credito prepagate

Hi, thanks for sharing a nice view point , hope the companies of the country should adopt these procedure to release from the debt.

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