1. Analysis: What is your real situation?

During an economic downturn you goal posts are moving. It is critically important to work with an exact analysis of the real situation, not with best estimates.

What are your real value drivers and how are they going to be impacted by the downturn? Do you have access to complex information that will allow you to objectively evaluate your strengths and weaknesses, your market position and the volatility of your business to outside impacts (such as input/ material prices, etc.)? What do you have to do to minimise the impact of the crisis? Do you need to focus on key customers, change suppliers, cut back production or adjust your pricing strategy?

When analysing your market position and possible responses, focus particularly on:

1. business partners (banks, etc.): Do they have correct information about your situation and your plans?
2. competition: Will it change its product or services portfolio, lower prices or establish strategic partnerships with other suppliers? What strengths does it have? Are you in danger of a hostile takeover?
3. customers: will they prefer a cheaper version of the product, buy a smaller volume of the same product or service or will they look for brand new alternatives? Are there differences between different client segments?
4. suppliers: are your contractual terms favourable? Does the market offer any alternatives?
   
   

Based on quality data, model a range of financial, operational and workforce scenarios that reflect the potential impact of the downturn on your business. Be prepared to adapt them as needed based on market changes and explore your strategic options as you go.

How can we assist you?

We can help you analyse your current situation and possible scenarios, re-evaluate your strategy, financing sources, operational management and human resources management.