Evaluate the strategies that a business can adopt during a recession
Evaluate the strategies that a business can adopt during a recession A recession, two negative quarters of GDP in an economy, is inevitably going to lead to a business getting less customers. Its overhead costs will be the same, but its unit costs will be higher because it will not be producing as many products but will still have these fixed costs. This will make the business less profitable in the short-term and so strategies must be implemented to try to improve the business's short-term and long-term prosperity. Such strategies might include improving its cash flow position, downsizing, decreasing its costs, decreasing its gearing and managing its receivables and payables more carefully. A strategy of improving cash flow will involve many aspects. They will need to decrease their fixed costs so that their unit costs will decrease and it will be easier to make a profit in the difficult economic climate. This may involve selling off excess machinery or ordering less inventories, or it may involve increasing its operational efficiency by holding less inventories and thus lowering its storage costs. Ultimately, improving its cash flow will enable the business to remain more liquid in hard times, where investors (e.g. banks) will be less financially lenient, in the way of loaning money to businesses, during a recession. Thus it is more crucial than ever for a business to
Marketing Management - Swisher Mower and Machine Company.
MBA5009 Marketing Management Group Report Of Case 5 Swisher Mower and Machine Company Submitted by Zeng Min, Bernice Ellen Novidia Adisoebrata Tan Xiao Ling, Linda Liu Bei, Pat Paul Lim Suparto Quach Thi Thu Hien Huang Yue Hong, Sarah NUS Business School National University of Singapore Wayne Swisher, President and Chief Executive Office of Swisher Mower and Machine Company (SMC), was weighing the proposal of a private branding arrangement for SMC's line of riding mowers. He thought the inquiry presented an opportunity but details should be studied more closely. Situation Analysis: Company Background: Established in 1945 by Max Swisher, SMC grew steadily with unit volume for SMC riding mowers peaking at 10,000 units with sales of $2 million in 1966. In the 1990s, the unit volume remained constant with around 4,250 riding mowers per year. Compared with 1,263,000 unit sales in riding mowers and tractors industry, SMC only occupied around 0.3% market share. Max Swisher, the current CEO, thought maintaining a small company image had also been an important aspect of his business philosophy, which led to the good personal relationships with dealers and customers alike. SMC produced limited but differentiated products. SMC's flagship product, the Ride King, was credited with the first zero-turning-radius riding mower. SMC also produced a trail-mower called T-44
Easyjet
From: Pablo Cortez To: Tracy Feist Date: 29/09/08 Overview: The following is a report into a private sector organisation known as Easyjet. Easyjet is a Public Limited Company and trades on the London Stock Exchange. It is a financially strong company being Europes No.1 Air Network. Easyjet's principal activity is providing airline services on short-haul and medium-haul point-to-point routes within Europe. Flying 872 times a day, It operates a fleet of 137 aircraft through 77 airport networks in 21 countries with a workforce of 5493 employees. This report will look into the purpose of the easyjet, how easyjet is run, its mission statement , concept, culture, overall performance, financial information, and other general operating activities. Main Findings: The airline was founded by Sir Stelios Haji-Ioannou in 1995, and he and his family remain major shareholders in easyJet PLC . easyJet currently operates throughout the UK and mainland Europe. The fleet of aircraft consists of 55 owned and 82 under operating lease, comprising of 107 Airbus A319's and 30 Boeing 737-700's. easyJet favours an informal company culture with a very flat management structure, which it believes eliminates unnecessary and wasteful layers of management. easyJet has a casual dress policy for all office based employees and bans ties with the exception of pilots. The airline is based at Hangar
