Crisis appears suddenly and the cause is difficult to predict. Crises can originate from politics, economic and social fluctuations or epidemics… Whatever the cause, they will certainly have a strong impact on the business operations, survival and development of the organization . In this context, businesses need a continuous shift in strategic direction, as well as a long-term vision to overcome the crisis. In this article, Apexcorp experts share with readers the effective strategies to overcome business crises. It applies to most businesses. Especially small and medium enterprises in Vietnam.
Depending on the changes and different levels of impact on industries, leaders will devise appropriate response strategies. However, below are the directions and actions that leaders need to deploy to protect the operation and maintenance of the business.
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Determine what actions to take during times of upheaval
When a crisis occurs, leaders need to grasp the situation and set realistic goals for the organization at this time, as well as future goals. What businesses need to determine is how to protect three main resources: financial, human and other related resources (supply chain, suppliers, partners, customers…) . At the same time, the plan must balance the necessary and sufficient factors to respond, recover and develop after crises and pandemics.
Build a peace of mind model
The company needs to identify people as the deciding factor for stability. Is the main resource to help businesses cope with the crisis. During this time, leaders need to share frankly with employees about the challenges ahead. As well as caring and pushing away their insecurities. Letting employees understand the current situation and setting a common vision will create effort and cohesion to overcome difficulties. Besides, organizations need to be flexible with changes and divide resources appropriately.
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Ensure capital to maintain the organization
The strategy to overcome the crisis needs to ensure capital to maintain the organization’s operations. Businesses should cut unnecessary costs to increase profit margins in a situation where revenue is decreasing. In addition, leaders need to review investment portfolios, debt recovery, and optimal financial allocation. Plans to equip and upgrade facilities should be shelved and alternative solutions should be chosen to maintain the budget reserve.
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E-commerce is an inevitable requirement
Crises, typically the Covid-19 pandemic, have changed behavior. Consumer habits of customers. According to the EY Future Consumer Index published in May 2020, 76% of survey respondents are and will change the way they choose products and services; 50% will only cover essential goods. Furthermore, the impact of the crisis causes businesses to break their supply chains. This is the premise for organizing the development of e-commerce and door-to-door delivery. To strongly promote sales. This decision brings the product closer to the market. Transact online but also minimize store costs. Staff…
Focus on restructuring strategy
Master Nguyen Phong Phu – Chairman of the Apexcorp Expert Council shared: “Restructuring, operating methods, and technology application will create smoothness of work flow and information flow. Help increase efficiency of the operating system and productivity. The entire team from leaders to employees must agree in cutting costs and work together to overcome difficult times.”
Conclude
Crisis is a test of management capacity as well as an organization’s potential. However, there will be opportunities if businesses proactively respond. And plan flexible strategies to overcome crises. We hope that the content Apexcorp shares will help your businesses overcome this period of change.
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