Downturn Strategy


The plan may include seeking a new business that in a downturn sounds like a terrible time to diversify. But if one has strong financial base diversification gives more stability because a down market in one product may be compensated for by another product.

Acquisition for organic growth is also an option that could result in rewards. In a downturn, valuations are pretty attractive for acquisitions that in future result in generating better rate of return on the capital employed.

Corporations may also consider hiving off its non-core business in time of a downturn in order to streamline core competencies. This will defintely improve its financial efficiency by effective use of capital.


Comments

Post a Comment

Popular posts from this blog

Charlie and the Chocolate Factory

Image
Yesterday, I had the pleasure of watching "Charlie and the Chocolate Factory". It  is a 2005 musical fantasy comedy film directed by Tim Burton and written by John August. The film stars Johnny Depp as Willy Wonka and Freddie Highmore as Charlie Bucket.  Charlie is a poor boy who lives near the Wonka Candy Company. The company's owner, Willy Wonka, has for long closed access to his factory due to problems concerning industrial espionage that led him to fire all his employees, among them Charlie's Grandpa. One day, Wonka announces a contest, in which Golden Tickets have been placed in five random Wonka Bars worldwide, and the winners will be given a full tour of the factory as well as a lifetime supply of chocolate, while one ticket holder will be given a special prize at the end of the tour. Wonka's sales subsequently skyrocket, and the first four...
Read more

Ravindra Jadeja – Son of Rickshaw driver to Millionaire

Image
Ravindrasinh Anirudhsinh Jadeja, born on 6 December 1988, is an Indian cricketer and represents Saurashtra in first class cricket and Chennai Super Kings in the Indian Premier League. He was also part of the victorious Indian U-19 cricket team that won the World Cup in Malaysia in 2008. Jadeja is a left-handed middle-order batsman and slow left-arm orthodox bowler. Jadeja made his first class debut in 2006-07 Duleep Trophy. He played for India in Under 19 Cricket World Cup in 2006 and 2008. His bowling and fielding helped India win Under 19 Cricket World Cup 2008 final. Jadeja was selected to be a part of the Rajasthan Royals for the inaugural season of the Indian Premier League in 2008. His brilliant display in the IPL matches won him praises from the team’s captain and coach, Shane Warne. He was nicknamed "Rockstar" by Warne as he was so impressed with Jadeja's cricketing skills and predicted a bright future for the all rounder. He made his presence felt during the IP...
Read more

Mountain Flight to Himalayas

Image
Nothing compares to the sheer beauty; the Himalayas has to offer. Nepal is the home to the greatest range of mountains in the world and many tourists come to Nepal to see them. However, neither everyone is a trekker / mountaineer nor has the time to walk into the mountains, so what are the options for these tourists to enjoy the highest points on the planet? Mountain flights!!! Taking a mountain flight is one of the most exhilarating things you can do in Nepal. Easily arranged, you can go eye-to-eye with Mt. Everest and world's highest peaks within minutes! The 50 min flight takes off early in the morning (first flight 6 am), and only operates if the weather is good.  Today, I took the one and believe me it was the best thing I ever witnessed.  Although it looked cloudy from the ground, once we rose above the clouds the view was all clear and just breathtaking. Once the flight takes off from Kathmandu, first peak comes is L...
Read more