Wrong ways to tackle crisis

When an economic crisis hits, enterprises would take every means to improve management and reduce production cost in order to increase sales and cash flow. But there are some incorrect views, including:

1. Price cut. Lower price brings immediate benefit, but it affects an enterprise's long-term branding, damages customers' loyalty, especially for those luxury brands, and the price can hardly be raised again.

2. Reducing advertising budget. Though less advertising will save cost, advertising is an investment that will drive up your sales, especially when others reduce their advertisements in an economic slowdown.

Media will also be in trouble in a crisis. They may provide some discount on advertisement fees.

3. A special task force collecting market information is unnecessary. In fact, you will need special personnel to collect market intelligence for you more than ever to make right decisions in a period of industry reshuffling.

4. Building a brand is costly. No, to build a brand is to make people remember it by offering them what they want. The key point is that you satisfy them in time.

5. Purchasing cheaper or even substandard materials to save cost. This is a big mistake, regardless either of your enterprise size or your market share, you will sooner or later be discarded by consumers. The Sanlu tainted formula scandal is a good example.

6. "Squeezing" suppliers. It is unwise to do so because suppliers may sacrifice the quality of goods they supply to you instead of shrinking their own profit margins.

7. Salary reduction. This will drain your company of its best talents.

Ye Dong

on blog.xinhuanet.com

Longing for sweet home

Comment on "Sweet, sweet home for Spring Festival" (China Daily website, Jan 5)

Home is always the sweetest harbor for the migrant, but the way back home is never all honey. The journey is full of exhaustion and anxiety.

The process of getting a ticket is still disappointing and even desperate. I couldn't go back home for Spring Festival in the past three years and I hope I can succeed next year.

Samara

On China Daily website

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(China Daily 01/08/2009 page9)