5 Great Anti Recession Tricks
GM may very well be the prime example of a company who chose all the wrong anti-recession tactics. Instead of adapting to the new times and emphasizing smaller, more fuel efficient vehicles in customized colors — they stubbornly pursued their current course of dishing out truck after truck and SUV after SUV. They believed this was the true American spirit — bigger, more rugged and, undeniably, more expensive. The top executives failed to realize that the money market was tightening up for consumers and that this new environmentalism tidal wave was already moving the Toyota Prius and the Honda Civic to the head of the queue. Instead of following the pathway to bankruptcy and bail-outs, here are some smart moves during the recession.
The most important of all anti-recession tactics is to understand the new problems your customers face and offer them innovative solutions. The most successful businesses are ones that can save customers money, make their lives less stressful and offer more value. For instance, one company developed a fast-curing resin to maximize productivity for injection-molding machines; yet, when the recession happened and greater output was no longer needed, the company switched gears and developed a less expensive, slower-curing resin, which was ultimately profitable. “We can’t add meat to a burger anymore,” admits CKE marketing chief Brad Haley, who oversees the Hardee’s and Carl’s Jr franchises. When times are tough, executives need to be more creative. He adds, “Carl’s Jr. is promoting a guacamole bacon cheeseburger. Avocados are a less expensive topping.”
Some managers remain purse-lipped and hunker down in their bunkers as their primal anti-recession tactics. Yet tips from the most successful CEOs focus on creating a balance between realism and optimism. No matter what the situation may be, a good management team must always be communicating with the rest of the employees. No climate is worse for productivity than employees who worry about being fired, suppliers who fear they won’t get paid and customers who have no confidence. Julia Stewart, CEO of DineEquity (parent company of Applebee’s and IHOP) says, “It’s important to assure your employees by making clear your vision, making sure they know that you care, and making sure that you’re direct and honest. They just want the truth.” During a recession, it’s important to be realistic but also to emphasize what’s working to instil confidence in the workforce.
In the past, anti-recession tactics used to be to take the business overseas. Yet, as time goes by, the wage gap in China, Malaysia, Thailand and India is rapidly shrinking as these emerging superpowers begin to gain momentum. Manufacturing costs, taxes, tariffs, speed, marketing training and transition expenses can all rack up the expenses. That doesn’t mean that executives shouldn’t recruit for the best talent, however. Now, with so many diligent worker bees out on the market, it’s a good time to weed out the non-performers and replace them with top talent. Mel Stark of the Hay Group consulting firm says that the best companies go the extra mile to reward their “most focused and driven employees” — recession or not.
About the Author:
Jamie Motior loves writing about anything and everything, he spends hours every week writing about a variety of different subjects from all walks of life. For a living, Jamie is a design analyst for a wireless baby video monitor manufacturing organisation, you can find out more information about baby video monitors by visiting http://www.video-baby-monitor.net which document different kinds of monitors commonly available today.
One of Jamie Motiors favourite writing subjects is Digital Hearing Aids , as he was born to the parents of two hard of hearing adults and is well aware of the difference in performance of the different technologies, and the difference they can make in the quality of life of the user.