Chapter 12 Specialized Journals

http://ezinearticles.com/?Do-You-Know-How-to-Manage-and-Control-Your-Business-During-the-Recession?&id=3502220

Summary:

This article talks about the writer’s opinion on how she thinks the business should operate during these hard time. In the article, she provides a few ways to help the business. Minimizing costs and maximizing efficiency are the two main points she talks about. Looking at expenses and see if any reduction can be made is a way to minimize costs. On the other hand, businesses would want to offer credits because other businesses are at hard times too, but also offer cash discounts. By offering these items, other businesses will be more likely to choose your business. This will allow the business to increase cash flow. The writer also states that if find risks they should be eliminated as soon as possible.

Connection:

The connection I made with this article and this chapter is when she wrote; give discounts for early payments as incentives for your suppliers to pay you early. In this chapter we learned that some companies offer cash discounts is to encourage customers to pay on time. One of the reason for this is the company can increase cash flow and have money to pay for their bills. Offering these discounts other companies will save money during these times and the company offering the discount will be able to have money to keep his business running. Both companies benefit from this situation even though the company offering the discount is not earning as much as before.

Reflection:

This article seems to have some very good ideas on how to survive during the recession. I agree on how the writer says offering discounts and finding ways to reduce expenses. Something that I did not like that much is when she says limit any risks. From what I learned the greater the risk the greater the profit. Even though the economy isn’t doing so well, taking a risk may aid the company. During these time customers are trying to save as much money possible. A way to attract customers is to stand out. Be different and take the chance because if everything is similar what are the chances of your company succeeding? In my opinion, risks are good. Depending on the company, whether or not they have the ability deal with the risk they take.