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Business recessions: how to defend your company from crisis

Crisis is the essential part of our lives. We experience it while getting in touch with friends, building families, bringing up children, and setting up business. All of us remember the amazing and promising beginnings when we have been full of dreams and unbelievable expectation. However, once our world seems to start shivering, and we hardly stumble on the way to success. In this feature we are going to discuss the measures that could help to avoid the destructive consequences of crisis inherent to the scope of economics and business development.

Receive the crisis with open arms

A famous psychiatrist and philosopher Karl Gustav Jung shared some ideas concerning dealing with tough situations. He said, once a depression comes to you, do not run away but instead announce dinner and ask what it needs from you. In such a symbolical manner Jung proposed not to hide from the crisis but, on the contrary, get what is possible and transform it into something pleasant. Such an approach could so a favor in a business, as well.

Just look at the statistics.

According to the survey carried out by ODM Group, nearly 60% of business executives at least once have experienced crisis in the enterprise where they are working now or used to work. They definitely know how to face the music and prepare for the crisis preliminary.

Then, let’s move further.

Almost 80% of people in charge of departments and companies are assured that crisis is going to start in twelve months. Similar suggestions make them think twice when it turns to any decision made.

Finally, only 55% of the business units have already come up with the detailed crisis plan where made emphasis how to survive in the worst occasions.

It means others are waiting for good luck or, perhaps, are not aware of probable types of crisis, thus, do not know what to expect.

Crisis comes unexpectedly yet predictably

With the shrewd business planning and deep knowledge of strategies it is quite easy to count the possible kind of crisis threatening your company as well as time period when it is likely to start.

Well, which views could the recession take? They are usually the following ones:

  • Failure of informational security affects companies badly in 47% of all the occasions;
  • Undermining of business development is inherent to the current economics in 50% of cases;
  • Logistics stay at the risk zone in 47% of all the possible courses of company growth;
  • Atrocious reviews addressed to the product or company are able to distract attention of the target audience in 45% of situations;
  • ‘Black PR’ of mass media directed to certain company is bound to lead to the destruction of business in 43%;
  • Product safety is able to appear under the danger, moreover, it could happen in 42% of the business strategies;
  • Technical accidents including traumas, damages with different extent of danger touch the ground in 40% of deals;
  • In case your company does not stand up to scrutiny of political communities and non-governmental organizations, this verily fact may destroy the future of the enterprise in 40% of actions;
  • Finally, committed crimes occur in 33%.

How to deal with the crisis

Even though it takes a lot of time and money to create a great working crisis plan, it is worth efforts.

Why is it necessary?

According to statistics provided by the edition of IMB Business Recovery Service & Cranfield ‘A Bridge Too Far’, 80% of companies affected by computer disaster ended up their business and became broke. In the meantime, Gartner has provided audience with the canvass showing that 90% of companies that lost important information went out of market within a couple of years.

Sounds threatening? Thus, it is time to act!

In case you do not feel enough power and experience to cope with crisis alone, why not to apply to Net Suite ERP that has industry specific modules for distribution companies, professional services and more?

Anyway, you are always able to talk sincerely with corporate executives, customers, vendors, industry experts, financial institutes, and trade associations. It is usually easier to survive when you are together!

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