By Daniel a. Continue to learn more with: Samsung. Alarcon. when the first reactions of the high administration crisis comes or managements usually point a: not invest, expenditure reduction, reduction of staff, contraction of product lines and conservative measures. Are these actions the right ones? The answer will depend on the final objective pursued by the company that faces a crisis; defining crisis as one of the following: significant loss of market share, falling prices, drop in sales volume, entry of foreign competitors or more strong, strong customer loss and/or consolidation of a local competitor. That effect are measures taken hastily to crises? We can mention: definitive loss of market share, loss of credibility with customers and suppliers, important human experience resource loss and loss of new business opportunities. But we do face a crisis? Many we are surprised when someone tells us, if the market is depressed and your business is in crisis: you should invest. It is an expression that we can counter it by saying: are you crazy? Do you want to invest today that I am in crisis to lose more? No, my dear reader. When a market is in crisis not only affects you, affects the rest of competitors, therefore which develop the best strategy of Crisis is that to survive and win the market.
(The only exception is if you or the Administration already decided to get out of the business). We mention some alternatives and recommended actions in a crisis: 1. do not stop investing. We do not say that you invest enough, only that it should not invest. Don’t forget to renew machinery, update systems, purchase of equipment for new products or projects. 2. If going to dismiss staff evaluate the alternatives of repositioning, send holiday, cutting sessions, working for fees, so don’t miss out on the human resource in which you already invested before. Think a moment, what would it cost to train a new person in the post that is by delete.