Experts advise companies on survival technique in troublesome surroundings

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By Cynthia Alo

Foremost economists and analysts together with, former Director-General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf; founder, B. Adedipe Associates Limited, Dr. Biodun Adedipe, and Dr ‘Tunde Popoola, have outlined survival and growth strategies for businesses and organisations under the current harsh economic environment that has seen some companies close shop.

According to them the basic focus for businesses should include protection of their cash flow, investing in existing customers and continued marketing.

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However, they called on economic policy executives to recreate the operating environment in such a way as to promote business confidence.

They were speaking at a seminar themed ‘Navigating Nigeria’s Macroeconomic Environment for Business Growth’ organized by the Savanah Business School and moderated by Head, Corporate Communications, TGI Group, Rafiat Gawat.

In his presentation, Popoola defined {that a} enterprise can’t management the macro-economic surroundings however operates inside it.

He decried the prevailing excessive inflation charge, inappropriate international trade coverage, excessive international and home money owed which can be hampering the expansion of companies. 

He urged the financial coverage drivers to pursue sound macroeconomic insurance policies as a result of the “extent to which policymakers can establish a track record of policy implementation will influence private sector confidence, which will, in turn, impact upon investment, economic growth, and individual prosperity.”

Adedipe, on his half, harassed the significance of entrepreneurs doing the best issues and going digital. “There is no sector you operate in the Nigerian economy that there is no space for you to thrive if you do the right things at the right place and the right time for the right person, with most things now digital.”

He additionally decried the inconsistent fiscal and financial insurance policies, expressing fear over the nation’s shrinking exterior reserves.

On what companies can do to outlive these turbulent occasions, Dr. Adedipe suggested company leaders to at all times give attention to folks, technique, execution, and money. 

Identifying sources of shocks to companies, Dr. Muda Yusuf listed oil value volatility, trade charge volatility, inflation and value volatility, regulatory shocks, coverage shocks, tax coverage, insecurity, expertise, innovation, and the COVID-19 pandemic. 

He added that the FOREX coverage had induced extreme shocks to companies as these “with import exposure are under extreme pressure because of currency depreciation. Costs have gone up; demand remains weak. Margins are being rapidly eroded. Many businesses have lost foreign credit lines following defaults in foreign payment obligations, resulting from forex liquidity problems.

Businesses with offshore credit facilities faced a crisis because of challenges in servicing the facilities, especially where the investment is not generating. Contracts on projects that have high foreign exchange components are facing challenges as costs have gone up dramatically. This is a bigger issue if there are no provisions for variations in the contract. 

The level of receivables has increased as many firms have frozen payments to contractors.”

Highlighting how companies can navigate the constraints and construct resilience, Dr. Yusuf mentioned choices embrace having “a flexible management approach to keep tight control on cost, review non-revenue generating areas of business, supply chain strategy, innovation and creativity, and risk management matrix.” 

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Experts advise companies on survival technique in troublesome surroundings

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