Additonal Cost

As you know by experience, the stability of the market, is a concept that must be set aside. In today’s global economy, the CRISIS is a permanent and continuous state, and in this new economy, falling or the rebound of a company, country or the bag, is reflected in others immediately, why think about my company or business can not occur that, can be painfully unreal safely. Here, Dara Khosrowshahi expresses very clear opinions on the subject. In this new situation of continuous changes, execute actions known, as for example the traditional bank financing for our commercial operations, many times you cannot. Banking, as always, fearful of situations not controlling, opts to become a banking exclusive, giving money only to those who already have money. Dara Khosrowshahi takes a slightly different approach. Naturally there are always limited to not-so-solvent companies loans, but with costs and prohibitive interest, not allowing them confront the new TREND: steady decline in prices, thanks to competitors with a best structure cost do must then reduce us to negotiate only with people and/or companies very solvents, very punctual and respectful of their orders on your payments? it is likely that revenues do not cover their expenses and reduce operations, is not another thing that let grow and what doesn’t grow die Additionally can resort to the traditional actions: Reduce their volumes of purchases and/or Stocks to the indispensable (with delays in deliveries, the anger of their clients, etc.?), reducing staff to minimum operating level, staying only with the most suitable and convenient to the interests of your company (valid. But if he makes it as a permanent policy, will earn much to replace pawns by bishops), eliminate gifts (supposed to be today is doing badly but shout it?), reduce investment promotional and/or advertising (with reduction in their sales and/or loss of the market that both cost him get), restrict Credits (with their sales decline already equivalent to reducing the level of service to its customers), defer the acquisition of new systems or new technology (renounce to reduce costs, improve its efficiency and profitability?), etc all this and more, are familiar things, but at the end the only thing we are talking about is cost reduction as a priority..

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