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.
After reading your article, I agree with you on some points, such as her ideas on maximising efficiency. One should find ways of limiting the costs of their outgoings to try and get the full potential of sales. However, during recession, I think it is more reasonable to limit risks. At times like these, dangers of leading a business to bankruptcy can increase. If one were to advertise clothing to its full potential when everyone is reducing their spendings, it is likely that the business would lose more money than gain from this action. I like how the writer uses the word limit, because it is good to make some risks; but too much risk can lead to too many consequences.
ReplyDeleteI agree with what the writer said. At recession, people are trying to reduce expense as much they can. Reduce expanse and offer discount are ways to survive in the recession. Finding a way to survive in the trade market is very important, therefore, Offer cash discounts can attract more consumers. Also, I agree of limit any risk because at this economy period people do not want to put their business at risk. If we use the concept “the greater the risk the greater the profit”, company are going to bankrupt easily because there will be less source for backup at recession. I think this concept will be use in economic growth.
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