Currently, the main reason for the development of the crisis in any company is the general decline in the market. If your company is experiencing sustained stagnation lasting more than a year, then the crisis has arrived. Do not expect it to clear up on its own; take action immediately.
It is necessary
- - Monitoring of the company's activities;
- - SWOT analysis.
Instructions
Step 1
Determine the reason for the development of the crisis. Often it develops because of the work for only one client. The negative consequences always start with a poorly diversified client portfolio. The company loses flexibility, loses its basic management mechanisms, struggles with overpricing and accounts receivable, since in order to retain the client it is forced to adapt to any of its requirements. Another common reason for the development of the crisis is the ineffective management of the financial and economic block using modern mechanisms with budgeting, margin analysis, and credit policy.
Step 2
Analyze the effectiveness of the company's current strategy and its functional areas (strategy in the field of production, sales and financial management). To do this, it is necessary to monitor key indicators within the enterprise in the main functional areas.
Step 3
Highlight the main competitive advantages of the company, its strengths and weaknesses, as well as opportunities and threats (the so-called SWOT analysis). Evaluate the competitiveness of prices and costs of the company. To do this, conduct a series of marketing research with operational monitoring of competitors' work.
Step 4
Bring the crisis down with cost savings, sales promotion, cash flow optimization and other key services. Develop your own commercial lending policy with your debtors, start restructuring accounts payable. This is how you stabilize the financial position of your company.
