• Main areas:-
  1. Plan a Strategy to overcome the situation by optimum utilisation of all the resources.
  2. Monitor very frequently the actions/results as per the strategy.
  3. Believe on the various tools and techniques of business management and Internal Control Systems(ICQ)., no belief on trial and error method of changing the systems.
  4. Only strategy/plan/execute/monitor/revisit the plan /achieve the goal.
  5. Only time is the factor, how soon we act to overcome the downturn business cycle Answered by Karunanidhi Sahu , CFO at Medirite Ltd & Polyfilm Packaging Nigeria Ltd ( Medirite Group ) | 20, Sep 2010 05:57 PM

• really the answers are pouring like any thing, why dont you select from this answers which one more useful to you and why don't you give them some gift for the best answer or good comment certificate, this will encourage our peerpower people. spend more time on this website.
  
  I don't know there are lot issues in the organization, lets not mention the organization name let them put more question, people will feel more enthusiastic to answer lot. lets use it properly. Answered by Purushothaman Bhaskaran , BUSINESS DEVELOPMENT MANAGER at HADI H. AL-HAMMAM | 13, Sep 2010 02:00 PM

• the following are the things to be done.
  1. Look at the PLC critically. Reinvent/remodel/refresh the products.
  2. Retrain the salesteam on new parameters of performance, eliminate non-performers.
  3.Reposition products in the newly evolved value chains as percieved by the consumers.
  4. Do extensive rebranding/cobranding with successful products to reach consumers.
  
  anil bhatia Answered by anil Bhatia , Regional Manager at Berger Paints Ltd | 13, Sep 2010 01:28 PM

• UPS AND DOWN ARE THE PART OF BUSINESS
  AND FOLLOWING POINTS PLAYS A VITAL ROLE IN REGAINIG THE POSITION
  INVENTORY CONTROL
  ECONOMY IN PRODUCTION
  CREATE BELONGINGNESS OF MANPOWER Answered by JITENDER GULATI , C E O at JAGDAMBA ENTERPRISES PVT. LTD. | 12, Sep 2010 11:38 AM

• Look at the people who are in the hierarchy. We have to move from the old adage "people are Assets" to "Right people are assets". Just a paradigm shift of looking at internal factors may bring in the right resource which will provide necessary solution for the downward business cycle. Answered by Arulmozhi Velayutham , SENIOR MANAGER at VA Tech Wabag Limited | 11, Sep 2010 08:29 PM

• Look at the people who are in the hierarchy. We have to move from the old adage "people are Assets" to "Right people are assets". Just a paradigm shift of looking at internal factors may bring in the right resource which will provide necessary solution for the downward business cycle. Answered by Arulmozhi Velayutham , SENIOR MANAGER at VA Tech Wabag Limited | 11, Sep 2010 08:29 PM

• One more point. Focus on people; they may be scared of losing. Build confidence, inspire, assure that there is light at the end of the tunnel & every cloud has a silver lining; downward business cycle will sooner or later be followed by a recovery, restructuring/ reengineering/ innovation and growth.
  bnnprasad Answered by Balagere Prasad , Managing Consultant at MfX Consulting | 11, Sep 2010 08:05 PM

• When you refer to downward business cycle, do focus on your industry and the economy. Contraction has led to weak demand and customers are not willing to buy or invest. The actions will have to come from your industry sector or Government and mere changes within your organisation like effective/ efficient use of resources, expenditure on brands, Capex, would bring in diminishing returns to scale. Active Inertia may lead to "Muda". Be careful; it is a matter of strategy t the highest level.
  bnnprasad, Sr Assessor, CII & Manufacturing Consultant Answered by Balagere Prasad , Managing Consultant at MfX Consulting | 11, Sep 2010 07:55 PM

• Keep your expenses in check
  Add valve to your products
  Look for new markets/Customers
  Speed up pending product development if any to combat competition Answered by Ramkishore Rathi , Director at sri Venkateswara Coir Products Pvt.Ltd | 11, Sep 2010 07:13 PM

• It is time do intro inspection /brainstormin and go to drwing board Answered by Suneel Kumar Singh , Vice President at Dixon Technologies India Pvt Ltd. | 11, Sep 2010 01:03 PM

• One should have resources to tide over the period and business wisdom to negotiate the lean period. Survival instinct is the issue.Exit route may be one of the alternatives and may not be the best. It varies from business to business, man to man. Answered by Abhyuday Chowdhury , Partner at practising CA | 08, Sep 2010 09:50 PM

• When you are into a downward business cycle, you should should first do "ABC" audit of the company or organization. Thereafter try to reduce the wastage cost. If there is no scope then you should branch out into another profitable venture. Answered by Harish Kumar , CEO at Checkdeals | 08, Sep 2010 07:22 PM

• It may be strange but the truth is that in a downward business cycle it doesn't pay you to downsize your operations.
  Take a look at your vision and mission. Assess your position where you stand with respect to your overall objective. You need to probe and brainstorm with your people what it takes you fulfill your vision and mission. Send right signals to all stake holders - People, Customers, Suppliers, Financiers, etc. that you mean business.
  
  Always remember, people are the single most important resources to make you achieve your objective. Empower people, groom them to become leaders and motivate them to achive the objectives. It is not easy but perseverence is the key to achieve your goals. Answered by Ramana Rao C.V. , CFO and Company secretary at Teekays Interior Solutions Pvt. Ltd. | 08, Sep 2010 05:19 PM

• 1. Tighten all the belts across ur offices. Make the people to come out of the comfort zone and work.
  2. You need to have a product according to the market trends.
  3. You need to relook at your dealer's policies and offers to dealers.
  4. You need to relook at your setup viz a viz manpower, branch offices. Answered by AR RAMU , TRAINING MANAGER at Forbes Technosys Limited | 08, Sep 2010 03:55 PM

• Resource utilisation - Sweating assets
  Efficient Working capital management - No Capex
  waste level control Answered by VIVEK TONDAPURKAR , DIRECTOR at Aryan Consultants | 08, Sep 2010 01:44 PM

• 
  1)Everything outside an organization’s boundaries that might affect it be focussed
  2)Establishing strong relationships with its suppliers :- Focus on Leveraging Collective Knowledge of the extended enterprise ( including key suppliers and distributors). (Both the explicit & Tacit Knowledge)
  3)Locating within a trading bloc could help to reduce long term trading costs
  ...See More4)Important Enablers:--- A bi-focal vision
  5)Identify key cost drivers , assess the firm’s position relative to competition (Bench Marking), identify factors responsible for cost differentials
  6) Innovation Drive
  7) Shift the centre - Adopt Blue oceqn strategy
  8) Devise Listening Strategies - listenging to customers as Inclusive strategy
  9) Accelerating Innovation by Cocreation Answered by VIVEK TONDAPURKAR , DIRECTOR at Aryan Consultants | 08, Sep 2010 01:40 PM

• First find what your counterparts in the similar business are doing, are they not hitting you in your back ?
  Analyse your costs and try to reduce costs
  Watch at what price other are charging and what price you are charging,
  Wait for some time, let the dust go down Answered by Rajendra P Bansal , Consultant at Self-Employed | 08, Sep 2010 01:36 PM

• Control all capital expenditure,but not to stop !keep available for most wanted &critical items,
  Control production seeing the demands,
  Declare attractive promotion programme for time limits,
  Simplify the production thru more reliable& cheaper techniques,
  Control credit market,accumulate all available,long pending resources,
  Increase easy representation at all angles,
  Reduce ,call back,transfer all unsold accumulated products at locations ,by doing this much any company can Survive another 2 years by then new &most soluble formula will come in! Answered by sivdas Narayan Panikker , Operations&Maintenance Manager at m/s.AL-KHALIJ HEAVY EQUIPMENT&ENGG.LLC | 08, Sep 2010 12:17 PM

• First of all try to analyse your assets position. Try and keep costs low, even cutting corners. Do a thorough study of your core conmpetence.. strengths and look at opportunites more aggressively. Latch on to these opportunities and capitalise on them. Answered by Niranjan Nalkur , Head-Sales,Marketing & Exports (Consumer Products Division) at Purechem Manufacturing limited | 08, Sep 2010 03:08 AM

• Evaluate
  - resources
  - fat in the system/supply chain
  - profitability of each Item/pack vis-a-vis expenses
  - Avoid dispensing with "experienced" leadership/manpower because of high cost, as they are the one who can come up with different ideas to bring the business back on rails.
  - Monitor high spend items and low spend items as well Answered by RK BHATIA , Managing Director, at Food Processing Sector | 07, Sep 2010 10:37 PM

• Three aspects are to be analysed.
  1. Whether it is general industrial downward trend as a whole or particular for that company. If it is general trend, then cost cutting measures and rationalisation of activities would be enough to sail through. If it is particular for that company, then investigations are to be made for the causative factors - whether fraud has occured, financial mismanagement or there is collusion at the top level.
  
  2. Try to bring in new products /services to create new life for the industry.
  
  3. Seek all the employees views /cooperation in overcoming the situation where the loyal employees would be too willing to provide their suggestions and help to sail through. Answered by brahamanapalle Murthy , Manager Internal Audit at Ashok Leyland Ltd | 07, Sep 2010 07:32 PM

Comments (3)

• thanks bhaskaran, you are right. It was proud moment for us when we had purchased AVIA at Chez. With good leaders, backed by sincere and hardworking associates we bound to come on top.. Commented by brahamanapalle Murthy, Manager Internal Audit at Ashok Leyland Ltd | 515 days ago
• IN AUTOMOBILE INDUSTRY ALL THE TOP COMPANIES, HAVE COME TO INDIA TAKEN MAJOR SHARE FROM OUR LOCAL COMPANIES, I AM SURE, THERE NEXT TARGET ON HEAVY VEHICLE, I HOPE ASHOK LEYLAND TAKE RIGHT DECISION, HAVE JOINTVENTURE TO BE THE MARKET LEADER IN THE INDUSTRY. I WANT OUR INDIAN TOP COMPANIES SHOULD TAKE INTERNATIONAL MARKET SHARE.. Commented by Purushothaman Bhaskaran, BUSINESS DEVELOPMENT MANAGER at HADI H. AL-HAMMAM | 519 days ago
• Nice one sir,
  
  We are only talking getting employees suggestion, but most of the companies is not following at all, performance appraisal is very good system, but it always fail, because of likes and dislikes, did any company is doing Performance review discussion on the top level management. even we are checking employees performance vs company performance, if we do that we can easily find out where went wrong.
  At least we can instruct all dept. managers to call there colleagues to have personal discussion one by one, this will boost the moral of the employees then every one become loyal to the company.
  . Commented by Purushothaman Bhaskaran, BUSINESS DEVELOPMENT MANAGER at HADI H. AL-HAMMAM | 519 days ago

• All the answers are very relevant. My views are that in such a situation, one must focus on what went wrong and try to eliminate/minimize it. Answered by Tarun Bissa , Manager` at CRM Technologies | 07, Sep 2010 07:12 PM

• The root cause of the downward business to be traced. It is not easy to find out root cause but once found it is easy to apply correction and prevention. No assumtion. Make enquiry and detect the root cause. Then apply correction and prevention system as sig sigma or kaizen or QC tools which is suitable to the problem. For God's sake, don't apply all the tools available in the management. Apply Pareto principle to solve problems.
  What is Pareto principle.? If you ask me, I will answer in next mail. Answered by Pancheri Venkatachalam Thangamani , INVENTORY MANAGER at SUNDARAM AGENCIES, IND. ESTATE, AMBATTUR | 07, Sep 2010 07:00 PM

• The response to this question by individuals on the panel seem to cover wide array of business functions and all of them very relevant. However, one of the most important issue is of moral of the personnel.No initiative is likely to succeed if the overall morale of the management and employees is low which is bound to happen in downward trend of the business. Many talented people may like to exit while others would show signs of frustration and indiscipline. Therefore any plan for turnaround should also focus on this very important aspect of management. Answered by Brig Ramchandra Mahato | 07, Sep 2010 04:32 PM

• 1. Sit for some time and think the reason behind down cycle or slow business.
  2. Recheck your management, productions and marketing group are functioning properly.
  3. Precisely recheck your management team if somebody is pilfering your important business info to other competitors.
  4. Try improving quality products and customer service. Answered by Dinonath Malick , CEO at Watchdog Detectives Association | 07, Sep 2010 03:24 PM

• Rajeev's question can probably spawn a whole book. Hence, attempting a "fit all" solution, I think, will miss the mark. The Industrial Sector / Business model and thus the Product / Service mix, the cause/s of the downward trend, the prevailing economic situation, recent bad decision/s, past bad performances, recent M&As, an ill-conceived political dictat or even a bad monsoon all cannot be addressed by either cutting CAPEX or OPEX or even by tweaking the management structure. If Rajeev is looking for a convenient one-liner; which I think is the best alternative to a whole book then --- HAVE THE BALLS OF BRASS TO CHANGE ATTITUDES FROM THE CEO TO THE CHAUFFER. Answered by SURANJAN SINHAROY , CEO at SciGen BioPharma Pvt Ltd | 07, Sep 2010 02:20 PM

• Thanks a lot to all those who took time to read and comment on my question. Your answers would certainly help everyone here if they find themselves in a similar situation at any point of time in their profession/career. Please let more thoughts pouring in here. Answered by Rejeev Sinha , Group Manager at Godrej Industries Ltd | 07, Sep 2010 02:19 PM

• 
  This happens in any industry and should not to be addressed in isolation.
  Focus on,
  * Clear and Honest communication to the all Employees on the reality in the market/industry, careful enough to motivate them to to think, suggest and perform better POSITIVELY, but no threats to jobs.
  ...See More2. Use this period to Innovate and Develop New Products, Technology Upgradation, Value Engineering of existing Products and Training Manpower on Skill Upgradation.
  3. Sales Team to be in the Field and maintain continuous contact
  with Customers and boost there morale by discussing ideas and options to improve and move on. Needs to be thought out, guided and planned discussions. Stand by each other.
  4. Top Management to interact more frequently with employees and communicate periodically the changes and improvements both within and outside. We are together in it and we will do it ,attitude.
  5. Cost Control and Cutting, if necessary, take the employees into confidence and should not be unilateral. They understand and respond positively to pains, if at all.
  6. Weed out identified non performers.
  7. The moot point here is the downward business cycle is not permanent, but, retaining quality and experienced human resource is very important for the future. Answered by Gopinath Nair , Head - Sales & Marketing at Spacewood Furnishers Pvt. Ltd | 07, Sep 2010 02:19 PM

• 
  Most important issues to Focus on
  1. Keep your employees motivated. Keep them informed and involve them in your in your plans to revive.
  2.. Have a thourough study for reasons for Downward business . It could be General slowdown of Economy, Slowdown in particular Industry or Product.
  ...See More3. What are likely timeperiod for revival and expected demand when the cycle is reversed.
  4. Based on Data above one have to decide whether to stop capital expenditure or go for expansion plan so that you are ready with enhanced capacity when the cycle is reversed.
  5. Focus on alternative customers/alternative products. These areas generally go back on backseat when the going is good.
  6. Take vaalue engineering exercises to bring down your costs. This includes RM, Processes, Design Etc
  .7. Look at your expenses and cut judiciously without affecting operations.
  Thanks
  a.k.saraf Answered by Anil Kumar Saraf | 07, Sep 2010 02:12 PM

• Always easier said than done, one has to be able to see the cycle early and adjust.
  
  cash flow - cash flow and cash flow are 1,2 and 3.
  Reinvent. Re - evaluate. Look at operations and non critical expenditures. Answered by Raman Singh Saluja , Founder at Gramco Infratech Pvt Ltd | 07, Sep 2010 01:45 PM

• - -Rebuild cohesiveness in the organization
  -Review Business plan
  -Keep Customers satisfied with extras...
  -Try to diversify in to new product / customer line
  -Arrange brain storming session for cost cutting ( Good people skill matter in such situation Developing and harnessing new skills, knowledge, and attitudes such that managers have the right capabilities to manage strategies for sustainability.
  -Manage cash flow with monitoring customer payment Answered by Prafulla Pant , Consultant at Jodhana Alternative Energy Solutions India Pvt. Ltd. | 07, Sep 2010 01:22 PM

• Downward Biz cycle is a go through phenomenon for any enterprise and gives a crutial opportunity to introspect and renew strategies.
  I suggest below Important moves:
  
  1) Dont let your people morale get down, dont loose talent. Biz WILL be back but people may not!
  
  2) Do the product FABing and optimal utilisation of resources at hand
  
  3) Sustain on Cash reserves (earlier profits) and engage mind on new biz initiatives, new markets
  
  4) Be brave but play safe, understand the biz cycle and evolve a strategy to cum full circle. Answered by Dr Rajesh Ghangurde , President at United Public Health and Welfare Organisation | 07, Sep 2010 11:52 AM

• When there is a rough weather, all ur team members will be extra careful and do their bit in their functional areas. what the CEO has to do is to motivate the team . This is the time to have a relook on ur Revenue mix,product mix and take strategic corrections needbased. Cutting the corners are not the solutions.
  
  
  Vijayan.N.G.Aiyar Answered by Vijayan N G Aiyar , General Manager at Gurind Group of Companies | 07, Sep 2010 11:35 AM

• Citing from my own experience with a leading Indian corporate I faced similar downturn when I took over as head of operations in addition to the legacy of under performance in the past & carried over for several years with consistent losses. This is the time to make adversity as an opportunity. Take up the challenge involve all senior & junior management including the workers apprising them of the scenario and the facts at the same time convince & instill self confidence in all that the path is difficult & hard but working together in a teamwork it will be overcome. On analysing so many grey areas were identified including poor management of resources, non performing assets, lack of motivation, under performance resulting in low ...See More productivity & poor quality/more rejections. Poor marketing , lack of customer service / outreach. We should consider this time as a god sent gift to change ourselves for better. Do change management everywhere the way we do business should be re-looked, re-organised and more customer focussed. Train the trainers and then all people in the organisation where everybody has the same goal as per vision of the ceo/president. We came out of such a down turn within two years. Results were beyond expectations, production was doubled, at good or better quality existing customers happy also marketing was thrust in new territories thus more customers and orders. Cost trimmed so that production cost came down as with the same cost we produced almost double capacity thus first time in the history of the company's ten years existence that we made substantial profit and also came out of downturn, it was like reinvention and rebirth. We rewarded people with bonus and deserved promotions. I would say in our lives and in an organisation downturns/ ups and downs will happen it is how we manage the issues and how prepared we are. There is a saying" In the journey of life keep your eyes on the goal, focus on the doughnut and not upon the hole". --Jawahar Rakshit. Answered by Jawahar Rakshit , Ex.Vice President at ExxonMobil | 07, Sep 2010 11:31 AM

Comments (1)

• Thanks Mr. Rakshit for this detailed answer.. Commented by Rejeev Sinha, Group Manager at Godrej Industries Ltd | 520 days ago

• While you need to contemplate on the suggestions proposed by most of the experts, you need to evaluate the reasons why your product is in the downward business cycle viz a viz the competitors products. If there do exist other products in the growth cycle ,you have rebrand and launch again to survive. Ultimately it is survival of the fittest and a brain stroming session is to be undertaken. Answered by G V KRISHNA , General Manager at Rees Oil & Gas Services LLC | 07, Sep 2010 11:28 AM

• There is no taylor made solution to such crisis situation. It is prudent to always concentrate on the core competency areas to revive the situation. The core competency areas analysis needs to be done with active participation of top management, middle management, first line supervisors and the workman having sincerity and dedication for the company. The key is to think out of the box and look for something out of nothing during the brain storming session and various formal and informal sessions amongst the peers group of core group formed for the purpose. The essence is time and key is to successfully analyse risk component in new venture of core competency. I feel it is sure to yield results provided 100% back-up by the ...See More management and at least 10% risk is taken in such ventures. In all such ventures one should remember that every failure should be a learning stepping stone and should not be discouraged. I am sure any organization can come back with enabling power with due diligence and patience.
  A.K.Das. Chief General Manager Answered by A.K. Das , Chief General Manager at Indian Rare Earths Limited | 07, Sep 2010 11:05 AM

• Do not panic: Its not unnatural...
  Take a breath & relax: This happens with many...
  Analyze product - Market with positive outlook: For every problem there is a salvation
  You will get ways to reverse it: Work on possible salvation & you are out of it Answered by Rajesh Richhariya , General Manager at Pithy Health Care | 07, Sep 2010 10:56 AM

• The three vital issues that would need looking into would be
  
  1) Reduction in recurrent marketing spend that does not conform to input-output SOP's.
  
  2) Check on the segmentation/targeting being followed as well as it's current relevance and fitment vis-a-vis market and competitive dynamics.
  
  3) Re-look at the basics of actual deployment of resources,including human rewsources and a pragmatic re-deployment strategy that will better utilize available resources to ensure optimum results,i a planned short term crisis management outlook and extending the same to expansion in a phased manner for long term consolidation. Answered by SushilKumar Menon , General Manager,Mktg & Sales at Remex Pharmaceuticals Ltd | 07, Sep 2010 10:48 AM

• A very relevant and excellent question for new entrepreneurs as well as experienced..............................
  my two cents -in order of priority
  1. Do everything to retain existing customers
  2. Do everything to retain your core employees
  3. Manage cash flows efficiently
  4. Once cash flow is positive or upward, find ways to generate new customers, revenues, and cashflows Answered by Dr Nayan Mali , Vice President-Business Development and Operations at Contech BPO Services Private Limited | 07, Sep 2010 10:21 AM

• 
  The first and foremost thing is to do a complete analysis in various factors which has effected the business growth.
  1. Cross check if your product /service needs up gradation not only in terms of looks but also in terms of Quality which anyways has to be maintained at all times.
  2. Cross check all your processes, right from service delivery/product mfng, pricing strategy, cash collections, capex & opex, people management, inventories, client acquisition strategies and management & Client feedback.You should be able to find the problem somewhere in any of these.
  ...See More3. Innovate - work on your existing produce/service line to make it more value-add.
  4. Explore new avenues/markets where there is a demand for your products/service.
  5. Diversify to new products/services/business to minimize the business risk.
  6. Most important is to Talk to your entire team and gain their confidence by informing them about the facts. Also inform them about the steps that have been taken as gaining their confidence is of utmost importance. This will also enable active participation from your employees, which might result into generation of new ideas and processes. Answered by Bhavesh Kothari , Head at INK Business Media Pvt. Ltd | 07, Sep 2010 10:11 AM

• The most important is to objectively review the Business and Business Model, streamline the processes, rationalise the resource allocation, remove the fat, hire talented and relevent people. Answered by Sudhir Jain , GM-Finance at Hero Group | 07, Sep 2010 10:02 AM

• Unbiased Assessment of All the Situations
  Taking Stock of All the Liabilities & Assets
  Cost Control
  Prioritization
  Go slow with hand on brake Answered by Devjani Duttapramanik , Freelance Content Developer & Trainer at Freelancer | 07, Sep 2010 09:59 AM

• 1. Scrutinise each expense in two categories a) Must to Have & b) good to have. This will give you a clear cut understanding of the expenses which are utmost necessary to incure to keep the quality of the product at same level. To explain capital expenditure on a quality equipmemt is Must to have to improve the first time quality and reduce the non value added expenditure.
  2. All capital spending must be revisited.
  3. Insist for localisation with similar or equivalent quality supply.
  4. Top management should "lead by example" so that subordinates follow them. Answered by Shashikant Lonikar , Chief Financial Officer at OCM India Limited | 07, Sep 2010 09:28 AM

• Whatever you do or focus on, make sure you are in touch with a very good placement consultant. Answered by Anupam Swarup | 07, Sep 2010 08:48 AM

• First you will spend some time alone with the current down time problem, and you will get the solution. This solution is the true solution, try it. It will work.
  
  Some more solution - Get a keep a cool head and wait for down cloud to be clear, keep your continious efford too.
  Save the penni and dolloer will follow.
  Go back to the basics
  Identified people who is work for you,Appriciate those doing hard work for you. Answered by Sanjay Sharma , Product Certificate auditor at NSF International | 07, Sep 2010 08:26 AM

• In a downward business cycle issues like checking the cost, tech upgradation etc etc would have been attended to and it has its own limitations.
  
  The most important is what is the value the customer is giving to your product. The customer will continue to go for your product inspite of the downward trend provided he sees value for the product. Value depends on how badly he wants the product. The best way is to ensure that the product carries the desired value and the customer is able to appreciate it. So focus on findind out what is most desired by the market, give that in your product and make it compelling for the customer to go for it.
  
  Hariharan Answered by HARIHARAN JAYACHANDRAN , Deputy Generral Manager at Karur Vysya Bank Ltd. (since resigned) | 07, Sep 2010 06:54 AM

• The question is make or break, usual or unusual, safe playing or pushing the risk? The answer depends on your personality! I would say instead of doing what every body will do, cut cost, slow down production, stop hiring, downsze people, etc. turn the table upside down. Innovate - process, product and way people work, increase investments in mktg (since nobody is doing, you will gain better) recruit good talent as they will fall out in their current jobs! Stay invested, stay hungry and stay ahead! Answered by MuraliSundar KothandaramanArun , Country Manager - UK Professional at Henkel India Ltd | 07, Sep 2010 12:12 AM

• Liquidity. If you run out of cash, that is the end of the road. Always make sure that the sum of expenses, increase in credit given and repayment of debt does not exceed the sum of income, increase in debt contracted and recovery of loans given. Answered by Ashok Desai , Consultant Editor at ABP Pvt. Ltd. | 07, Sep 2010 12:01 AM

• Basically it is relative phenomenon and there is no out of the shelf solution to this challenges.In fact it is the testing time for the organisation system ,culture and leadership .The most important is to keep the core team motivated and high in morale to build the internal and external confidence of the organisation.
  To cut down the flab should be continous process and should look out for some real value business proposal if the cash flow permits. Answered by Virendra Bhandari , CFM at New Horizons-UAE | 06, Sep 2010 11:26 PM

• First thing to note is that it is sheer incompetence of management to find out things on which to focus on after the business has entered a downward cycle. Competence in management is reflected in anticipating the beginning of downward business cycle phase in advance and decide in advance what one should focus on to prepare the organizing to deal with the downward cycle.
  Most managements do not however have the orientation to hace advance preparation for downward business cycle. So better late than never: find out what to focus on after the downward business cycle has set in. The important things to focus on are costs and efficiency, arranging more risk capital to survive in depression/ recession, innovation, investing in ...See More building capacity at prevailing low cost due to falling prices so as to be in businesses/ product areas that promise great commercial successes in the next upturn in the business cycle. Answered by Basudeb Sen , Independent Director at South Asian Petrochem Ltd | 06, Sep 2010 10:59 PM

• 01. Negotiate your capex. Do not stop just defer. This will be the right time to negotiate and plan the expansion with the lesser cost and to calculate the advantages of the future;
  
  02. Reallocate your resources;
  
  03. Look for business oppportunity by using the unused capacity of the plant or operations to use the resources at it's optimum;
  
  04. Lastly this is the time when many players will be out of the market. Hence it will be right time to take the advantage of the situation and enter in the market with newer stratagies Answered by Kunal Bandyopadhyay , Director at Overland Impex Limited | 06, Sep 2010 10:59 PM

• It is the time for all of us to Focus on the Important things rather than the Urgent ones. Concentrate on Innovating the product and any business person knows that its a challenge one need to face in a product cycle. As you know the finish line is very close don't slow down, run faster and complete the race, so that you can participate in the next race with confidence and Zeal. Answered by KT Kumar , consultant at kewintex | 06, Sep 2010 10:27 PM

• In the downward cycle of business ,the first & foremost is to identify the cause of downturn
  1.fall in demand due old design
  2.general recession
  3 Strong competition
  Each of the above requires a specific text book approach to improve the business in the short term. Answered by P Rajesh Rao , Director at Ekgaon Technologies Ltd | 06, Sep 2010 10:08 PM

• 1. Yield management is important. Though the topline revenues may go down in such trends, the margins need to be focused on.
  2. Cut down on the extra fat. all wasteful expenditure should be cut.
  3. Capex should be slowed down during recession.
  4. Expansions could wait till trends reverse.
  5. Redeoployment of resources.
  6. Try and get new customers, Though there may be a slow down, but the extra capacity has to be utilised.
  7.some hard decisions in terms of human resources, even though the organisation philosiphy may not allow that. Answered by Ghanshyam Arora , Executive vice President at International Travel House Ltd | 06, Sep 2010 10:04 PM

• To identify the causes for downward trend - (1)if the busines is agro-based, the law of diminishing return shall be backed by increasing return after the change in cycle;(2) for others, it may be end of product life either due to change in technology or change in consumer preference. Depending upon the nature of business or traded in products, one is expected to expand - with horizontal. vertical or lateral combination or slow /close down the unprofitable areas or rething for make or buy decisions, etc.
  The cost control, cost reduction, value engineering, energy audit etc are on-going process in a business and perhaps cannot give any relief when sickness is deep routed. Answered by Ashok Ghosh | 06, Sep 2010 09:50 PM

• I couldn't stop but comment, and rehearsing my own experience from 2001! Now relating after having gone through the myriad of management roles. While Agree to most of the comments by other experts. I think The NO 1 PRIORITY : GET THE RIGHT MAN ON THE HOT SEAT. WHO HAS THE AUDACITY OF TAKING ON DETAILING IN THE SITUATION AND ABILITY TO SEE THROUGH WHAT IT WOULD TAKE BEYOND, ONCE YOU CROSS THE BOTTOM. Needless to say, this is tough leadership, and typically people falter to garner the skills during this time due to over-emphasize on cost cutting etc... albiet that is the need of the hour - but the best outcome comes only when you have " Scarcity strongly bonded with the Ambition". - Ravi Mundada. Challengers Welcome!! Answered by Ravi Mundada , Delivery Unit Lead at Accenture Services Pvt. Ltd | 06, Sep 2010 09:06 PM

Comments (1)

• thanks Ravi for your well shaped answer carved out from your real life experience.. Commented by Rejeev Sinha, Group Manager at Godrej Industries Ltd | 520 days ago

• Be frugal, as a frugal foundation to your everyday life will allow you to come out ahead when this economic recession is over; improve your investment strategy by investing for the long term and diversify; establish an emergency financial plan so that if you lose your main source of income today you have a fall back option; protect your job and increase your marketability and finally add additional sources of income by looking into how to you can monetise your skills or explore other niches.
  
  G Gopalakrishnan, COO, Telecommunications GmbH, Germany (LinkedIn : http://de.linkedin.com/in/colonelgopi) Answered by G Gopalakrishnan , COO at Telecommunications GmbH | 06, Sep 2010 08:55 PM

• keep patience, if it is downward today that means time is near to go upward but at the same time, simultaneously with holding the downward trend, analyse what went wrong?? Recheck your policies, working philosophy, the market, and related issues. Certainly hold back the finance for some time and even if it is necessary, invest wisely . Answered by Arvind Jain , Sr GM at Ruchi Group of Companies | 06, Sep 2010 08:29 PM

• we have to analyse the root cause of down trend pragmatically. whether it is because of economy or competition. In either of the situation, we have to calculate the interest burden and extra overheads we are going to incur.Create a budget..Then go for a brain storming session down the line and take ideas from front line people. Analyse each & every idea as these have come from the people who interact with your market. Based on this plan for a promotional activity which can bring excitement in customer groups so that they shift from your competition or pre pone their purchases. Trusting your front end always pays. Its just a change management.Who ever responds to the change fast, they will get the benefit. In fact its an ...See More opportunity to score over your competition. Answered by syam Sundar Reddy , Associate Partner at Headway properties | 06, Sep 2010 08:26 PM

• if you can postpone you capital and R&D expenditure ,liquidate your
  post production inventory I think we can survive downward cycle. Answered by karthikeyan arumugathandavan , design consultant at 5D6S | 06, Sep 2010 08:17 PM

• Just survive to another day and for that do what ever cost cutting measures you can think off. Answered by Alok Kumar Behera , GENERAL MANAGER - F & A at Sree Metaliks Limited [SML] | 06, Sep 2010 08:08 PM

• Well, Rajeev - if you had anticipated the downturn before it came in, chances are you would have already provided for it and you can even pat yourself on the back for having seen it ahead.
  The trouble is when you have downturn and you don't know what to do about it - either because the reasons are not as yet known to you or they are beyond your control (remember the recent mega meltdown triggered by the fall of the behemoths and in some instances their greed as well). When they are beyond your control, its cool - because it gives you an opportunity to sit back and think about competencies or even repositioning or may be complete change of business.
  The trouble is when its happening and you don't know why it is happening - ...See More that's where you need to be extremely cautious not to indulge in any knee jerk reactions but rather think through, ascertain the problem and then deploy systemic solutions. This could mean anything - change of product lines, change of positioning, cut on capital and marketing expenditure or may be even rise on these expenses to bail you out of the dangerous troughs. Answered by Prakash Prabhakar , MD & CEO at Q-Equip Associates India | 06, Sep 2010 08:05 PM

• 
  1. A Leader, at first, should hold on to his Man Power. Motivate, Encourage and do not allow them to get panic and move away.
  2. Ensure that your Company and your Product do not move away from the notice of the public. Keep communicating with them, may be through an inexpensive medium, such as Letters, Posters, Educative materials, etc.
  3. Analyse why the Down Trend is. List down all the factors. Get the points from every section of the population concerned, such as, Workmen, Officers, Managers, Suppliers, Clients, Financiers, Directors, External Consultants, Sales persons, etc. This will actually provide you the complete insight.
  ...See More4. Once listed, assign priority Number. Address the One with a high priority mark.
  5. Spend your time, energy and available funds on innovation on Products and Process.
  6. Get the Quality of all Resources increased during this time. Actually, people will have more time to discuss, debate, understand, improve and excel their quality and will scale up to the expectation, once the market turns upwards.
  7. Be Cool, Calm, Keep your professionalism at its best. Answered by Ramakrishnan Venkataraman , General Manager at Aditya Birla Money Limited | 06, Sep 2010 07:54 PM

• 1. Retain key employees.
  2. Retain customers.
  3. Improve / develop products.
  4. Fine tune internal systems.
  5. Control costs.
  6. Conserve resources. Answered by VINOD DUA , Director at Niksun India Private Limited | 06, Sep 2010 07:51 PM

• Relook at your inventory. If there is a pile up or days in inventory has gone up take steps to mitigate the same - encash by getting rid of obsolete stock.
  Ask for a deferred deliveries or stretched credit period from vendors.
  Analyse receivables and accelerate your collections.
  Analyse the cash burn in depth and put on hold unplanned and deferrable expenses- both Capex and opex.
  Be tracking your cash flow and Rolling budget on a weekly basis very stringently Answered by Mohan Ramanujam , Vice President - Corporate Finance at California Software | 06, Sep 2010 07:47 PM

• Be frugal, as a frugal foundation to your everyday life will allow you to come out ahead when this economic recession is over; improve your investment strategy by investing for the long term and diversify; establish an emergency financial plan so that if you lose your main source of income today you have a fall back option; protect your job and increase your marketability and finally add additional sources of income by looking into how to you can monetise your skills or explore other niches.
  
  G Gopalakrishnan, CHief Operating Officer, Telecommunications GmbH, Germany (LinkedIn: colonelgopi) Answered by G Gopalakrishnan , COO at Telecommunications GmbH | 06, Sep 2010 07:29 PM

• Men and women are responsible for upward /downward trends. Focus on your personnel. Strengthen team spirit. Reconfirm organisation objective. You will get the best answers from your own team, perhaps from a junior, bright person. They will deliver the goods. Answered by Harwant Krishan , Chairman & MD at Pine Hills Eco Camp | 06, Sep 2010 07:05 PM

• i do not agree with most of the answers.
  i believe the most important in downward cycle is to keep a brave face. it is seen that negative things bring a ripple effect, that people in the organisation will talk negative, fear of job losing and this will further bring the worst in the company.
  the best is to do things you always wanted to do , but not able to do due to pressure of work, use this time to may be change over from legacy system to new ERP, do innovations drive, do training. these all if you can afford it and for see this down cycle will be over in 6- 9 months. it is historically proven that maximum time a recession is for 1 to 1.5 years only. and this is the best time for introspection and bring positive ...See More energy.
  i would not like to get the bears take over and scare my org. Answered by Paresh Singhal , AVP at SREI Sahaj E-Village Limited | 06, Sep 2010 06:56 PM

• I would go with a root cause analysis (recession / customer preference etc) to identify the growth curve and future outlook based on which I would go for technological upgrading ,increasing value ,training, merger, buy out of other companies to consolidate and reduce cost while strengthening integration to build up competitive barriers’. Answered by Surendra Sharma , Shipping and logistics at Consultant | 06, Sep 2010 06:30 PM

• 1) Ensure that you do not lose your customers. Best way to would be to work on a strategy to provide more value to your customers rather than reducing the price.
  2) The top management should go in for a voluntary reduction in their salary and benefits. Do not impose it on the next line or the workers. This is managing by example and helps maintain employee moral high. Answered by Deelip prabhudesai , senior consultant at Strategic Asset Management | 06, Sep 2010 06:24 PM

• 1) Analyse cause of downturn- is it specific or general, internal or environmental
  2) Lock in major customers, partners or businesses with a loyalty programme to hold the bottom line
  3) Plan you turnaround based on current business and immediate pipeline businesses
  4) Jettison any growth plan which contributes beyond your estimated turn around- who has seen the unplanned future?
  5) Support the stars- do not hold back expenses on the growth stories
  6)Cut as much of overheads as possible. They hold down most companies and are a pain during downturn cycles- get rid of all the froth.
  7) Motivate. Motivate, Motivate but with a vison. Answered by Suneel Vasudevan , MD at Vitamalt Plc | 06, Sep 2010 06:23 PM

• Check cost and overheads.
  Maximum utilization of existing capacity.
  Cut overheads.
  Do not look at any diversification of expansion plans.
  Investment only on the existing technology for improving productivity.
  Invest on synergies and strategies which could improve the existing set up.
  Consider the current demand and cut ineventories to a certain extent. Answered by Shivaram Gopinath , CEO at Uniconnect | 06, Sep 2010 06:22 PM

• 1) For what Circumstance have business down
  2)If any Problem with Product Simply Modify the Things If Possible
  3) Comparion with market for same product , Brand / Price
  4) Requirements Of consumers
  5) Managemant Capacity Answered by PRADEEP PANDA , EXECUTIVE COORDINATOR at SANARTI SIGNAL PVT LTD | 06, Sep 2010 06:18 PM

• Examine why we are going down and finding out the best solution for that purpose. Innovation,research and development this qualities never get down the business. Product should be different from others and can deliver value to the customer. Answered by amit bhurke , PROJECT HEAD - IT & MARKET RESEARCH IN SERVICE INDUSTRY at ACH Management Consultant Private Limited | 06, Sep 2010 06:17 PM

• 1. Plug the gaps in operations, this is the best time to turn-around & make your company gear up for the up-swing.
  2. Check your offerings, innovate for the future.
  3. Invest on internal process improvements
  4. Invest in break-through ideas and be ready for growth Answered by Arun Saligrama , Director at Valcon | 06, Sep 2010 06:06 PM

• -Pl ask yourself the following questions and find the answer.
  1) Is it the recession eating away the business?
  2) Is it the product quality that bring the downturn?
  3) Is it the productivity that give the chase?
  4) Is it the the knowledge gap that develop the present situation?
  5) Is it the financial mismatch that tempt the whole situation?
  6) Is it the right moment to diversify to a diff model in the line of the present model with good quality & lesser cost?
  
  Getting these answers ,will automatically bring the business into the right track. Answered by Ramakanta Panigrahi , JGM(Geophysics) at Essar Mineral Resources Limited | 06, Sep 2010 05:59 PM

• 1) Stop capital expendituire
  2) Minimises expenses up to bottom level
  3) Scrutiny of the process ,where we went wrong.
  4) analyse of the situation and make plan accordingly
  5) Remake startegy to Hit back with a bang
  6) Always maintain positive approch thru the entire phase Answered by dinesh sharma , Chief Advisor at Gurukul | 06, Sep 2010 05:56 PM

• 1. Add value to your existing process from the existing resources, be it money, man, machine, method etc.
  2. Re-organise the workforce though proper scruitinising the potential of the existing manpower.
  3. Re-use the existing resources, in stead of spending on capital investment, make modification, repair etc.
  4. Do not get panick, do not stop communication advertising, travel etc, but may re-orient the planning to use these avenues. Answered by Kalyan Roy , COO at Suzikline | 06, Sep 2010 05:52 PM

• Keep yourself cool , donot get panick AND wait for your TURN again. Answered by VINAY BAHL , CEO at Bahl Hospital | 25, Aug 2010 06:13 PM

• When I saw the topic, I could not wait but to add few point which I believe have to be done with immediate effect -
  1. Stop Capital Expenditure.
  2. Revisit resource audit and evaluate. (needed to be done time to time irrespective of downward trend.)
  3. Calculate liability and depending on that optimise production.
  4. Work on minimising liability and overhead.
  5. Stop adding cost which are secondary in nature.
  6. Optimise resource utilisation.
  7. Increase productivity in all sectors.
  If you succeed in doing these, there will be positive impact in your presence in spite of downward business cycle. Answered by K. Bimal Singha , Director - Business Consulting at iTechnologix India | 25, Aug 2010 03:40 PM

• When in problem--back to the drawing board !!
  Most easy way was (at least up-till now)---chop heads !!!
  Does not work that way.
  Reaccess products, markets,sales strateies,Distribution channels,inventory levels,sourcing etc.
  Address staff--give them the factual picture.Do not scare them into even giving them a hint that head will be chopped,salaries downgraded etc.
  These are the guys that are going to keep you afloat!! Answered by Uday Junnarkar , HOD,Vet Sales at Muscat Pharmacy & Stores,LLC | 23, Aug 2010 06:18 PM

Comments (1)

• Dear sir,
  
  We can say in one work to do the fish bone diagram to take the right decision, to solve this problem. Boss one thing, if we are not watching the product life cycle, and Business life cycle properly and take the right decision on the stagnation period, then it is all vast.
  
  Lets watch this in future and take right decision what to do.
  . Commented by Purushothaman Bhaskaran, BUSINESS DEVELOPMENT MANAGER at HADI H. AL-HAMMAM | 535 days ago

• There are some caps in the business cycle which has to be followed at any parament of the cycle .It was quite true that non of the business move in a horizontal or vertical direction through out the year , there are up,s and down paramenter which is always there with the cycle . There are some general paramenter like cost cutting , no increment to the employees, no bonus, etc .
  
  As per my point of view it is essential to focus on the re evaluation in the marketing strategy , the market demand or requirment , not to very aggrsive for taking decision rather to take steady step for any activity . Answered by Shantanu Sengupta , relationship manager at universal sompo gic ltd | 23, Aug 2010 05:38 PM

• 1. Transforming Products. Price and Quality according to markets.
  2. Switching Market. From focusing from one to another.
  3. Slowing down more working capital and investments.
  4. Wait, Watch and Proceed.
  5. Inculcating Diversions.
  6. Being modest.
  7. Never trying to recover the past with moving ahead.
  
  Business literature being only creating confusions with the markets, it is the numbers which can be talked about more. Answered by Vinit Agarwal , Owner at MilkyDwarf - Web Magazine | 23, Aug 2010 11:32 AM

• First start thinking in positive way , start searching why iwas wrong at any movemet and try to be better in every aspect. Answered by Aditya Lokhande , Marketing Manager at Subishi Impex Pvt. Ltd. | 23, Aug 2010 11:30 AM

• a. Assure people within the organisation, steps are being taken to tackle the downturn. Tell them to participate and overcome issues. Their confidence is paramount...
  b. Assure and retain existing customers...
  c. Oppurtunity to explore new products/markets with same resources... Answered by Subramaniam Sundaram , Regional Manager - South at Shirdi Industries limited | 23, Aug 2010 11:23 AM

Comments (1)

• Mr Sundaram,
  I fully agree with you as it is the staff who are the back bone of any Organization and it is their confidence which had built the Empire in the Past and yet be able to conquer further heights in the future but simultenously the consumer needs and ideas are also changing and their visualisation of any product has changed drastically for the best and also economical but today's consumer will not like to compensate the price factor based on their Health does there are many factors in respect to the changing consumer needs that are a primary subject to be thought upon in a downward business cycle. Commented by Pullin Kapadia, Regional Manager-West at Magna Infra India Ltd | 534 days ago

• - check all overheads/other expenses lest they spiral out of control.
  - Add value to your products so that fresh new demand keep you going out of business.
  - Diversify if possible to spread the business risk
  - Keep your existing and loyal customers happy. Shift your sales focus from attracting new customers to enticing your proven customers to buy again.
  
  Rakesh Answered by Rakesh Ojha , CTO, Digital Marketing Evangalist, Mentor and Buying Facilitator at SocialMedia69 | 22, Aug 2010 05:27 PM

• Retrospecting honestly as most of us inpite of knowing certain hard facts do not react properly to it and falsly belive that it is true. We never work on those parameters which most of the times are simple to handle and find a solution. Answered by Vivek Kumar , Head- Brand,Marketing and communications at Tata Teleservices Ltd | 22, Aug 2010 12:45 PM

• Downward business cycle can cause any of the following
  1. Less orders, or
  2. Same order book with discounts
  3. Higher order book but heavy discounts
  4. Competitors withdrawing from business giving opportunities for
  takeover, customer poaching, margin increases, consolidation etc.
  
  It depends on the industry and demand cycle for each of the above scenarios. But every recession presents a opportunity for a few and a disaster for the many. It is upto the individual firm to conserve its resources and leverage its strengths to excel in the market or just wearout the storm and be ready for the next uptrend. Answered by Naresh Chandra , Sales & Marketing Consultant at Uastraa Marketing Advisors | 21, Aug 2010 01:00 PM

• 
  The business word is likely a weather where changes in ups and downs generelly occures on quarter to quarter. mostly we my find that the downward it happens in the organisation due to following reasons-
  1 Lack of technology innovation in competative business atmosphere
  2-lack of improvement in ways services required by customers.
  ...See More3-staticness in behaviour of employees. in such case an old employee not become to bother about the offering of innovative services to the customer.
  4- lack of induction and training programmes at time to time.
  5- lack in proper appraisal of employees.
  6-not to take effectively the IMPORTANCE OF CRM in favour of company.
  In such i hope every business may become continuously successful if they always try to adopt cutomer friendly atmosphere. in nut customer become as a GOD for organisation, so we should choose customers with some ethics and retain thev with effective CRM followups . so these customer may become mouth brand creating measures also.
  Thus my point of views are if we become successful to analyze our competitors, change in ways of services and technology as required by customer on judging the right time , as well as creating organisations brand at the same time by diffrent communicative ways, we sustain ourselves in declining stages and do our business again on speady path. Answered by Rajeev Mishra , Dy. Media Manager at Pratiyogita Darpan - India's Largest Youth Read Magazine | 21, Aug 2010 11:20 AM

Comments (1)

• sir,i agree with your answer posted.. Commented by Mohsin Mokashi, MEDICAL COMMUNICATION EXECUTIVE at GlaxoSmithKline Pharma Limited | 527 days ago

• Dear sir,
  
  It really nice question,
  
  1. Diversify your Business
  2. Look for Join-venture
  3. Look for merger
  4. If you see the Business Lift cycle chart, It will clearly shows that, the growth, stagnation and the downward, Don't mistake me every one talks in the corporate but is it any watching all this charts, every one bothers about, what you have achieved ever month and what you made at the end of the day., FOR ANY CHANGES YOU NEED MONEY, corporate is ready to invest.
  
  Thanks and Best regards
  
  D.Purushothaman
  00966505805067 Answered by Purushothaman Bhaskaran , BUSINESS DEVELOPMENT MANAGER at HADI H. AL-HAMMAM | 21, Aug 2010 10:48 AM

• Hi Rajeev, I would like to share a story about a man who sold hotdogs. He was illiterate,so he never read newspapeprs.He was hard of hearing, so he never listened to radio.His eyes were weak so he never watches tv.But enthusiasrically he sold lots of hotdogs.His sales went up.He orderd more meat and got himself a bigger stove.As his business was growing,d son joined d father.
  Then something strange happend.D son asked, "dad, aren't u aware of great recession that is coming and d domestic and d international situation is even worse.We should be prepared for d coming bad times".
  D man thought that since his son had been to college,read d papers and listened to to d radio,he ought to know and his advice should not be taken ...See More lightly.
  So d father cut down his order, took down d sign and was no longer as enthusiastic.Very soon, fewer people bothered to stop at his hotdog stand and his sales started coming down raqpidly.
  D father said to his son,"you were right. we r in d middle of a recession. I m glad u warned me a Answered by Lalit Bhojwani | 21, Aug 2010 08:15 AM

Comments (1)

• It means if someone says that the chase the crow, it has taken your cheese..it is better to first look into pot rather than running for the crow.. Commented by Rajesh Kumar Pandey, Finance Manager at Hidden | 537 days ago

• Hi Rajeev,
  
  Cut costs and be innovative.
  
  Taran Marwah
  www.afund.com Answered by Tarandeep Singh Marwah , Marketing Manager at Indian Spinal Injuries Centre | 21, Aug 2010 12:15 AM

Comments (2)

• hahaha... humorous but true.. Commented by Rejeev Sinha, Group Manager at Godrej Industries Ltd | 520 days ago
• no marwah saab , aapse koi puche ki main pradhaan mantri kaise bano, to aap unhe batayenge ki election lado, aur pradhan mantri bano,
  
  but to sat it to do it has a far distance. Manmohan ji ko bahut dino se election jeet rahe the but PM banana bahut bad mein naseeb hua ...........SIR. Commented by Rajeev Mishra, Dy. Media Manager at Pratiyogita Darpan - India's Largest Youth Read Magazine | 535 days ago

• Apart frm the technical details, I believe our mental attitude needs to be very strong when in downward business cycle.WHEN THE GOING GETS TOUGH, THE TOUGH GET GOING.....Reaffirm your faith and belief ...move forward!! Success is bound to follow!! Answered by rachna raj , IBO at Amway India Enterprises | 20, Aug 2010 11:04 PM

Comments (1)

• WE are listening. Commented by VINAY BAHL, CEO at Bahl Hospital | 533 days ago

• Business Experience down cycle because of inappropriate resource allocation and changing business environment and policies and competition.
  
  when experiencing a down cycle one must foremost look into adequate resource allocation to all process and keep on visiting the drawing board to tackle competition, environment and changing policies.
  
  reducing costs is not a way to improve on cycle rather one should keep into mind as to how one can create a value proposition for a customer through its offering.
  
  Lets take the example of the recent ressesion.
  
  We can see that inspite of the downward business trend companies did make huge profits cause they created value for the customer. Answered by Kishan Sikaria , Propritor at Infobrandz | 20, Aug 2010 03:52 PM

• Most importantly, don't panic and get down to typical 'cost-cutting'.
  Go back / stick to basics
  See if the downturn is a symptom of the declining relevance of your product or service and if so choose to reinvent
  Go back to the drawing board like how you did it when you started the business
  Focus on process improvements and strengthening of systems
  Never lose hope nor be sentimental in making decisions. You probably would have to make hard decisions but don't be scared to do so.
  Hitting the downward business cycle once in 7-8 years is actually good for a business. That helps to clean up the system and creates a wonderful opportunity to be relevantly innvotive and not just wear it as a badge. Answered by Srimatesh Kaveeshwaram , Managing Director at Communication Workshop Pvt. Ltd. | 20, Aug 2010 03:52 PM

• When you Cycle is on a downward slope what we do
  
  1. Dont Speed up the peddle: Means slow down your operation and production
  2. Keep You Hands on the Break: Means Keep your expences under break
  3. Try to turn to empty way: Means try to take your business or product where there are no players.
  4. Enjoy Riding: You dont have to paddle so less work. Enjoy the cycle automatic running.
  5. Beware: Enjoy riding only if you know that somewhere there is a smooth road and you are not falling in deep valley. In this case leave the cycle and try to climb on foot. Answered by Rajesh Kumar Pandey , Finance Manager at Hidden | 20, Aug 2010 02:05 PM

Comments (1)

• innovative way of collating suggestions...liked it.. Commented by Anshit Khanna, Sr. Marketing Manager at Viacom 18 Media Pvt. Ltd. | 538 days ago

• 
  As per my experience, stress / focus has to be on followings :
  
  * Strengthening internal resources. Motivation of Human Capital does wonders at this stage.
  ...See More
  * Effective Cost Management plays vital role.
  
  * Effective Management of Key customers is necessary. However, on parallel lines, small steps / efforts must be on to add new accounts. Even one customer added in such hard times, will add to loyal list of clients.
  
  * Brand Building : It should not be looked as cost. Classic example is Brand 'TATA DO CO MO'. They spent a lot and kept their efforts going in making their brand visible in dry times. Result was, they were the only one at that time and they were heard by all in such clutter free environment.
  
  And above all, keeping faith in you and your team is most important . Answered by POURUSH KASHYAP , Asst. Manager - Sales at Max India Ltd. | 20, Aug 2010 12:01 PM

• look upwards the mistake done and C how to over come by not repeating the same Answered by jyothikumar varma , Director at C-Media Networks | 20, Aug 2010 11:53 AM

• KEEP LOOOOOOOOOOOOOKING uP Answered by Narasimhan Brig Retd S L | 20, Aug 2010 11:12 AM

• a) Keep motivating your human recourses and try your best to retain them during the down time of business cycle.
  
  b) Focus on customer’s delight in order to retain and get the repeat business.
  
  I believe the impact of the down time will be minimize if one give the serious consideration to the above points obviously along with their other core business issues. Answered by Niteen Mahajan , Business Manager at Zest Systems Pvt. Ltd. | 20, Aug 2010 10:44 AM

• A very pertinent question.
  
  1. Strengthen Internal resources, focus on training, innovation and development during this period.
  2. Consolidation, refocus, market penetration techniques, Market research.
  
  These become core issues. By the time the downturn has reached bottom, it can only go upward, so you are now armed and ready.
  
  regards
  Madhav Answered by Madhav Kopalle , Manager - Business Development at Indian School of Integrated Learning | 20, Aug 2010 10:01 AM

• a very valid thought.
  brand building at any point of time is the key to success. some major decessions need to be taken during this tough period. with support of proper market research, appropriate diversifications are advisable. Answered by sanjeev malik , Head (New Produvts Division) at Bajaj Electricals Ltd | 20, Aug 2010 09:20 AM

• i some of imp factor to focus in downward is
  Its better to launch new product
  Its better to add a new feature to product according to market trends
  Its better to cut price(when product already got advertisement and promotional cost)
  If fmcg product better to change in packing and labeling. Answered by mahesh s , STUDENT at NIME COLLEGE | 19, Aug 2010 11:52 PM

• There will be two most important issues to look into during a business downcycle.
  
  1. Reduce costs
  2. Increase Sales Answered by Vidyasagar Raja , Business Development at Maruthi Power Control Systems | 19, Aug 2010 09:32 PM

• Go back to the Basics of Marketing and Management according to your environment.
  Strengthen them with atleast a medium term Vision. Answered by Rakhavanvel Attur Thangavelu , marketin manager at dynatrade motors | 19, Aug 2010 09:18 PM

• Go back to basics and strengthen the fundamentals. Browse through the history and try to find out what factors helped the business. Check whether your business is as good in those important factors, if not strengthen them.
  
  Employee and Customer engagement should not be compromised on Answered by Ramnath Misra , GM Marketing at Hyderabad Industries Limited | 19, Aug 2010 08:50 PM

• When Busisness is on a downward trend, we must at the onset cut non productive costs as this will deplete opur meagre resources,thereafter:::::
  a. Devise ways & means to better our product and increase it's marketability.
  b Try for new cost saving measures to enable u8s to price our product at par if not less than our competitors.
  c.Do not invest in dead stock.
  d.Ensure that staff is courteous to customers and get proper feedback from the market.
  e. Go in for mass advertisement.
  
  
  
  
  Try all numbo jumbo whether possdible,good or not because at the end of the day the business is mine and I am answerable to myself. Answered by Sanjay Pande , Manager Contracts at GRV Construction Works | 19, Aug 2010 08:18 PM

• Hi Rahiv,
  z
  In the current scenario yes ups nd downs are very much there. And yes it can overcome if we follow few simple points like:
  
  1. candor in the organsiation
  
  2. operations shd be fast nd simple
  z
  z3. value each other's time
  
  4. eliminate bureaucracy. and last but not the least its in in the connection
  
  
  IN THE MOST COMMON SCENARIO, A COMPANY'S MISSION AND ITS VALUES RUPTURE DUE TO THE LITTLE CRISIS OF DAILY LIFE IN THE BUSINESS. Answered by savitha ramkrishnan , CONSULTANT at FREELANCER IN RECRUITMENTS | 19, Aug 2010 08:13 PM

• 
  One should focus on the brands in correlation to that stage of the product life cycle that the brand is now , innovate or reinvent to extend or reposition the brand in the product category so as add value & reach.
  If the brand is on the verge of reaching the end of its product life cycle than devise strategies like creaming or else relaunch the same with a better proposition to the consumers, which can be derived from the research and product development data on hand .
  If the downward trend is due to the product business cycle than during the lean period innovate strategies to improve consumption through aggressive penetration strategies , expand the availability both in the depth & width.Other routes can be like
  ...See MoreTrying new technology ,Training & development of the existing manpower,dolling out incentives to dealers for carrying additional inventories by bringing in additional investment/funds.
  Ensure that the budgeted target production is achieved and pressure on the sales team is maintained to achieve a reasonable and favourable YOY growth . Answered by Ramesh Parakkat , Consultant at Redpoint ventures Pvt Limited | 19, Aug 2010 08:00 PM

• use energy audit and power conservation software to minimize your cost of production and beat the market on price competitiveness. Answered by Textilesinfomediarydotcom MuraleedharanBalakrishnVaidyar , Sole Proprietor at Textiles Infomediary - Online business Soltion for all kinds of Industries. | 19, Aug 2010 07:20 PM

• Nothing happens without a cause. Focus should be to identify the cause and take remedial measures. Critical analysis of business, surveys etc help you. Risk management should be enforced at all levels. Answered by Pradip Kumar Daftari , Distributor at Indian Mutual Funds | 19, Aug 2010 07:16 PM

• 
  Really depends on the attributes of the company in question but here are some general guidelines:
  
  - Find a more effective way to manage you bottom line. Look for pin in the haystack
  ...See More
  - Use technology stack to its best capabilities to:-
  1. Consolidate to get the single source of truth
  2. Get a 360 degree view
  3. If afford-ability is not a question and there's enough data available then invest in predictive/advanced analytics also known as data mining. Technology goes hand in hand with human intuitiveness these days if properly used. This is possible when an organization is matured enough or got the baby boomer attitude
  
  - Get a magnified view of competitive positioning with respect to offerings. Create early stage differentiators in sales cycles and that can happen only when the organization carries a thorough understanding of the "Value Gaps". In short take a tangible business solutions approach as opposed to a product or service.
  
  - Look for financial solutions. Lots of the companies are not even aware of the possible financial solutions that exist in the market. So proactively look for such solutions. One example would be Factoring: It means a company can trade their AR invoices for immediate cash at a very low %. This may help a lot in cash flow management which remains one of the key concerns in such downturns.
  
  Sarbajit Das
  Partner
  Lateral Pace Answered by Sarbajit Das , Partner at Lateral Pace | 19, Aug 2010 06:55 PM

• brand making play major role for the business....to be the business tycoon. Answered by hemant mishra , CEO at Hk true value communication | 19, Aug 2010 06:43 PM

• greetings Mr Rajiv.Ups & downs are always their , not only in business but in all spheres of life.One has to be vigilant all the times.We all have to accept the change in attitude of the CONSUMER.Customer is always right.Constant perusal is required about our stake in market.One cant sit pretty in this competitive market.Brand development will also matter Answered by Vijay gaitonde , proprietor at jyot dairy (festval ice cream0 | 19, Aug 2010 06:35 PM

• Most important not to forget that this is cyclic and you will soon recover.
  
  These could be the step for the brick and mortar industry.
  
  1.Do not throw good money after bad money.
  2.Rationalize work force.
  3.Relook at the product range and pricing.
  4.Rationlise salaries if possible.
  5.Raw material holding period must be.
  6.Reduce credit to customers.
  7.Increase credit period from suppliers.
  8.Reduce bank liabilities.
  9.Prudent advt spending.
  10.Defer launching new products.
  11.If possible reduce prices and ship out total maximum ready goods. Answered by Anil Kohli , Owner at I-Ore Trading | 19, Aug 2010 06:28 PM

• 
  Hi Rajiv Sinha,
  
  Greeting of the day. In business there are upward and downward trends. If there was only upward trend then everybody will be businessmen and there won't be anybody to do the job. So you can call this as a natural phenomenal circumstance. However, many factors and parameters play part in downward business cycle. Like better product by competitors, no proper service, no adequate stocks, rude behavior by the staff and so on. But a prudent businessman will tackle these issues very systematically in piece meal. You must analyze minutely what went wrong and where.
  ...See MoreSometimes the fault is with us or we are lacking the spirit to digest the loss sportingly and put more efforts with zeal and enthusiasm. It may be something beyond our control like masses have taken to liking for other vendors' products.
  
  However, the cycle will continue and I am sure, again a time comes when the graph starts moving upward. But to avoid the downward trend, every time we must do something different to attract customers without losing our creditibility, confidence, and most important the product itself.
  
  Mercedes do not have to compare itself with Maruti and reduce its value. Answered by Satish Juthani , Manager, Ghatkopar(Mumbai) at Karvat Group of Companies | 19, Aug 2010 06:21 PM

• It is very important to understand all your cost and resource heads and optimize (bring in effeciency) them at the earliest. You have to know what competitive edge you have and how you can maintain it. Also you need to think about new areas where a competitive edge can be created. It is often during the difficult years that the strongest of the businesses are built. Answered by sanjay bhattacharji , Marketing Head at L&T Mutual Fund | 19, Aug 2010 06:17 PM

• The first and foremost requirement in such a scenario is to put effective resistance so as check the trend.Sit back and collectively contemplate,a solution is so close by, that it is often overlooked.Once this is achieved ,go ahead and reorient the strategy;decisions taken collectively,remember - WISDOM is collective intelligence and not an individual thing,to be put into action by assigning individual responsibilities with periodic evaluation;no reason why you are not back into black. Answered by chandra pathak , secretary at upmsra | 19, Aug 2010 06:07 PM

Comments (2)

• Beside so many check points, i believe marketing is one area which need to be re-looked into. All the sales & marketing strategies need to be rediscussed thread bear keeping in view the latest trends and updating the same, may be matching the competition & customers needs, rebuilding the brand, revamping the product list & products catering to latest needs of the customers. This is one area which needs constant updating, improving & creating additional demands.. Commented by Ashwani Kumar Nagpal, Head - Marketing(Domestic & International) at May Steels Ltd | 520 days ago
• A Corporate can not just go by popular sentiment about recession or down cycle.I would like you to establish the facts, analyse performance of your biz verticals.If these indicate a commo down wards trend and industry benchmarks are also following the same, then, I would evolve a plan to counter the trends..A. More Effective Control on OPEX and CAPEX.
  B.Encourage Cost reductions..without compromising the quality of Products and Value for money to customersC. Plan protecting your marketshare for Cows and Bulls if required-- increase the mktg expenditure for those products/ markets only.D. Chop off the dead wood and unproductive manpower...starting from top.E.Analyse the trends periodically to Forecast recovery and be front runners to expand the market share by including plan for new areas...F.Reward the Guys who helped Corporate survive the downturn..Rest can be LT..Diversification to build Product Mix that could help Corporate perform better in economic down turn... Commented by Lokesh Punj B Tech. MBA IIMA, Free Bird at NA | 521 days ago