The current state of the country has been challenging for many companies. In this recession, every company has to think about the box and find the way to survive. Since the beginning of 2016, Nigerian companies are struggling with a number of economic issues, such as equivalent foreign currency import. This has created a serious bottleneck in production and satisfies customers' needs, albeit the growth in demand for local raw materials (only for locally substituted imported raw materials).
Before that time, Nigerian companies are struggling with some issues, such as poor infrastructure, poor energy supply, global competition, product counterfeiting, regulation and taxes, etc. FDI is severely depleted and banks do not issue loans. The inflation rate was ridiculous, and the devaluation of Nigerian Naira was alarming. The economic downturn has to a large extent affected all sectors of the economy, and many companies have to stop operations, while others have to function minimally.
It is therefore important that any company that wants to survive this recession must develop new strategies for survival. However, the first area to focus on is the cost of the company. The recession calls for cost reductions, especially with the costs that can be removed. These include waste generated by waste (dual treatment). There is no time to recycle the products, thus increasing production costs. Energy / energy costs (for fuel producers) should be revised. Do you have to run all machines? Do you have to run the current machine's capacity, even if you do not use the standard volume? Do I need a big generator at this point, or do I use smaller generators for small machines, so they spend less on diesel or gasoline? These decision-making issues are in line with efficient energy use.
The company needs to look at high-lifestyle or luxury costs. It is an important area to reduce costs. The number can be reduced because most companies do not require the usual amount that requires the current number of staff. It is better to have fewer staff to pay for the whole job than many associates, so the company can not afford to pay at this point.
The procurement manager must do more to locate alternative substitutes / alternatives for certain materials as Forex is not yet available. You may need to consider other suppliers and be able to see what they offer. The production manager can also examine the possible production synergies of the production plants.
Another important aspect to consider is your new business idea. Given the current machines and workforce, the company can think of a new product with 60-80% local resource consumption. This will help the company run at a fixed price while paying for Forex and other products. The new product is handy to provide space for exports in neighboring countries. This is not a bad idea. Just survive!
Nigeria is going through a phase and will soon be gone. However, every company finds out how to stay in business before the end of the recession.
Source by sbobet