SIX STRATEGIES FOR RESCUING BUSINESS

When the company faces the financial crisis, we should use the following six strategies to rescue the business crisis:

I-    Employee Strategy:

In order to save the unnecessary expenses, we should lay off the employees who are not available and just keep the employees with skill. Strongly controlling the budget for the salary, incomes and expenses. Elevating the working capacity and enriching the general knowledge and skill related with our jobs and carrying out the self-study.

II-   Raw Material Strategy:

1-  We, at first, have to clear the stocks at the warehouse.

2-  To reinforce the industrial and material management.

3-  Trying to repair the unused or old equipment which are available.

4-  To clear the damage products.

III- Finance Strategy:

In order to tighten the expenses and decrease the interest of loan, we have to do our utmost to repay the principle and interest to the bank and speed up the turnover of the capital. Collecting the debt with the efficient method from the distributors, wholesalers and retailers… etc.

IV- Technical Strategy:

1-  To decrease the expenses for R & D study, but it doesn’t affect the process of the work.

2-  Continuing to upgrade the research and development.

     3- To postpone the new investment on new equipment.

V-   Organization Strategy:

1-  Improving the organization system.

2-  Elevating the efficient rate of work.

3-  The leader must be decisive, active, efficient and strict. But the leader has to be aware, sometimes the excessive control and strict regulation may affect the mood of employees (warning).

VI- Enterprise Strategy:

We have to lessen or give up the loss department and business. Improving and reorganizing the management system for the heavy loss of son company.

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