Survival – the name of the game

Some years ago whilst working for an international corporation I attended one of the bi-annual strategic reviews for senior Group executives. Each executive was required to give a presentation in respect of his/her business unit. One colleague addressed the audience with his one word objective namely “survival”.

At the time this was met with a fairly frosty response but current events show that it is probably a suitable watchword for the present time. As the machinations continue in the Euro zone and the commentaries become even more emotional with phrases such as “disintegration” and “meltdown” then to survive these times would seem to be a very laudable objective.

So many factors are coming into play over which individual companies can do little to protect their interests other than ensure that they react appropriately.

However the one certainty is that the global economies will survive and business will continue. In the coming months there will undoubtedly be casualties but by adopting a controlled and rational response to these challenges businesses can ride out these difficult times.

The value of building and maintaining relationships

Business practises have changed markedly in recent years.

Although many operations are completed electronically in this virtual world we should never forget that essentially commerce is about people trading together.

The reality of the real world is that goods need to be moved from point of production to point of consumption and obviously the diverse elements which make up this chain cannot  be achieved solely via a computer terminal.

It makes sound economic sense to foster and maintain good customer relationships as it has been determined that it costs up to five times as much to win a new customer as it does to retain one.

There is an old adage “know your customer,” this dictate has never been more important than in these uncertain and challenging times.

Time to grasp the nettle

Every business transaction contains an element of risk, yet at the same time how satisfactory are the mechanics for managing risk?

In recent years we have witnessed just how costly the laissez faire attitude to risk was in many institutions be they large corporations or smaller SME’s.

In the never ending quest for larger profits many of the saner measures of business were abandoned. An analysis of recent disasters all have one common denominator – the architects of these calamities went hurtling over the cliff like lemmings.

There has never been a more pressing need to examine all areas of exposure.

A forensic analysis of the current Debtors Book might make for uncomfortable reading but like most unpleasant tasks it should not be ducked.

Better to take remedial action such as a write down whilst you are in control of your own destiny rather than have a 3^rd Party appointed to do it for you 

Failing to act, acting to fail

Very few companies implode like a supernova. All too often the distress signals are visible for some time before the flame out.

When faced with mounting problems it is highly likely that the solutions will of necessity be painful. However, radical and decisive surgery is often the only way to ensure a patient’s survival.

Many companies adopt the Mr Micawber attitude that “something will turn up”. In the overwhelming majority of such cases the only people likely to turn up are the administrators/liquidators.

Be it merely inertia or fear of addressing the problem issues the outcome will inevitably remain the same.

Low cost entry to the UK market

One of the most valuable commodities available to any organisation is local knowledge put simply the way of getting things done.

How many times has a venture be it commercial or for that matter military, ended badly owing to a basic failure to understand and deal with local market conditions?

The UK is a mature and sophisticated market and though offering different challenges to operating in emerging economies there are still obstacles in trying to establish a presence.

Operating overheads present a crucial challenge and this is where we can assist you to achieve a cost-effective solution to marketing your products in the UK.

Take a look at our website www.glbconsulting.co.uk

 Or check out our video link http://youtu.be/ruUtQnlJ

If it wasn't so serious we could all laugh

Yesterday the Governor of the Bank of England issued another doom laden forecast warning of the "extraordinarily serious and threatening" economic situation.

He joins a growing band of Doomsayers made up of high profile members of the international Banking world and senior politicians who seem oblivious to the fact that the problems we now face were created on “their watch”.

It is the ultimate irony that politicians with the so called “light touch” and institutions such as the Bank of England/ US Fed were all too willing not to look too closely into the ways that the markets and sovereign economies were being structured for fear of rocking the boat.

There is a certain black humour that these very architects of disaster now turn round and pontificate about the dangers that the world faces.

These were the same people who were lauding and applauding the likes of Sir Fred Goodwin the former boss of RBS. There was further irony that his successor at  Royal Bank of Scotland, the bank now majority-owned by the UK government, said recently that strict regulation meant investors saw UK banks as a "dumb" place to invest, and that it limited banks' ability to lend.

As the crisis in the Euro zone unfolds it is also worth noting the number of high profile cheer leaders for the Euro who are now conspicuous by their silence on the matter.

The reality is the man in the street is told to prepare for more belt tightening whilst businesses find themselves desperate for funding as Banks are reluctant lenders as they look to repair their damaged balance sheets.

Plus ça change.

The consequences of denial

For reasons well documented over the past days the UK economy is in a very fragile situation. Despite all the signals many businesses still seem unwilling or unable to face facts.

A classic example is the retail sector – the run up to Christmas, October through to December the so called “golden quarter” has always been of prime importance.

As 2011 unfolded it was evident that consumers would be faced with tough decisions and the traditional Christmas buying spree would not materialise. Now that this is proving to be so we are seeing a number of leading retailers who are in denial.

Various reasons are being cited to explain the lack of sales such as the unusually warm autumn weather, but the more pertinent fact is simply many UK consumers do not have buying capacity.

It was obvious that faced with rising fuel and utility bills, a squeeze on income and a higher than anticipated inflation rate that something would have to give.

Retailers in particular should forget their theories and notions as to what people ought to be doing and consider what they are doing.

Once a business is oriented to face facts rather than delusions, problems tend to fall into their true perspective and become soluble.