Traditional managers vs Entrepreneurial managers

Traditional managers vs Entrepreneurial managers

American industry has two primary species of managers:

traditional and entrepreneurial. The former are trained to

produce year-to-year growth of profits, and the latter aspire to

produce innovative products each year. Both managerial

strategies frequently consume capital, create energy-diverting

peripheral divisions and bloat overhead expenses in the race to

outperform the prior year’s results. Many traditional and

entrepreneurial owners and managers respond to trouble by

borrowing money to build sales and cash flow, surrounding

themselves with managers who believe that growth will be the

salvation and telling stories to their creditors.

Extracted from a book titled: RECESSION BUSINESS STRATEGIES by Prof John C. Mbuya

Available from the following bookshops:

http://www.amazon.com

http://www.amazon.co.uk

http://abebooks.co.uk

http://www.exclus1ves.co.za

http://www.kalahari.co.ke

http://ww.infibeam.com

http://www.booksprice.com

http://bn.com

http://kalahari.co.za

OTHER CAUSES OF ILLIQUIDITY

OTHER CAUSES OF ILLIQUIDITY

1. Managers think sales growth can disguise problems

within their organizations.

2. Companies are undercapitalised.

3. Managers fail to respond to the market by continually

reviewing products or services.

4. Managers fail to stay in contact with customers and to

continually ask what they want.

5. There are not enough talented people in middle

management.

6. Owners and managers become emotionally involved with

their companies.

7. Owners are not strategists, but want to do the strategists'

job.

Extracted from a book titled: RECESSION BUSINESS STRATEGIES by Prof John C. Mbuya

Available from the following bookshops:

http://www.amazon.com

http://www.amazon.co.uk

http://abebooks.co.uk

http://www.exclus1ves.co.za

http://www.kalahari.co.ke

http://ww.infibeam.com

http://www.booksprice.com

http://bn.com

http://kalahari.co.za

ILIQUIDITY

Iliquidity

Iliquidity is a symptom, but not the cause, of the company’s

crisis. There are structural problems within the company that

have depleted its cash, with its liabilities exceeding its assets.

The causes of insolvency vary from company to company, but

most workout and turnaround specialists will agree that the

primary reasons are as follows: 

1. Managers are unprepared for trouble or crisis.

2. Managers tip-toe stressors until they become epidemic.

3. Managers do not know where and how to slash expenses

and raise cash.

4. Many of today’s managers never have lived through

seriously troubled times. 

Extracted from a book titled: RECESSION BUSINESS STRATEGIES by Prof John C. Mbuya

Available from the following bookshops: 

http://www.amazon.com

http://www.amazon.co.uk

http://abebooks.co.uk

http://www.exclus1ves.co.za

http://www.kalahari.co.ke

http://ww.infibeam.com

http://www.booksprice.com

http://bn.com

http://kalahari.co.za

CRISIS AND THE INVOLVENCY

CRISIS AND THE INVOLVENCY

I am not going to tell you that saving your troubled company is a

simple thing. There is no simple solution. But there is a process

for saving the troubled company in a recession, just as there is a

process for starting a company or expanding a company, for

buying a company or selling a company. And the process for

saving the troubled company begins with drawing a line between

the crisis and the company’s illiquidity. One problem is emotional

and the other is structural. Crisis is the result of stress that

builds on itself until it becomes distress and explodes into

uncontrolled chaos.

Extracted from a book titled: RECESSION BUSINESS STRATEGIES by Prof John C. Mbuya

Available from the following bookshops:

http://www.amazon.com

http://www.amazon.co.uk

http://abebooks.co.uk

http://www.exclus1ves.co.za

http://www.kalahari.co.ke

http://ww.infibeam.com

http://www.booksprice.com

http://bn.com

http://kalahari.co.za

RECESSION BUSINESS STRATEGIES PART THREE

RECESSION BUSINESS STRATEGIES: PART THREE

You tell yourself to think fast and think smart. Very few

companies emerge from Chapter 311. The number is one in

five. Here are some things many owners and managers think

about when in Chapter 311.

· If that ignorant banker of ours had come through with the loan renewal

that he promised (More blame).

· I want out. I want someone to buy this company and let me walk away

from it. (Escape).

· What if we can‟t come out of this (fear)

· I‟m a failure (Shame)

Extracted from a book titled: RECESSION BUSINESS STRATEGIES by Prof John C. Mbuya

Available from the following bookshops:

http://www.amazon.com

http://www.amazon.co.uk

http://abebooks.co.uk

http://www.exclus1ves.co.za

http://www.kalahari.co.ke

http://ww.infibeam.com

http://www.booksprice.com

http://bn.com

http://kalahari.co.za

RECESSION BUSINESS STRATEGIES: PART TWO

RECESSION BUSINESS STRATEGIES: PART TWO

Your lawyer encourages you to meet with a bankruptcy attorney.

The attorney recommends that your company file for protection

under Chapter 11 of the Bankruptcy Act, explaining that “this will

give you time to reorganize, perhaps six months, during which

time no creditor can put you out of business”. The bankruptcy

Lawyer’s argument is persuasive. You pay an exorbitant amount

of money to prepare the filing, and in a few days, you sign the

papers and your company is in Chapter 11.

True to the bankruptcy lawyer’s word, all creditors are backed

off. The creditor telephone calls stop. Cash builds up because

only the essential bills are paid. And for the first time in months,

you begin to find some practical peaceful moments in your office

to think about the business.

You tell yourself to think fast and think smart. Very few

companies emerge from Chapter 311. The number is one in

five. Here are some things many owners and managers think

about when in Chapter 311.

· How did I get into this mess / shit? (Regret)

· Maybe I‟m not cut out for this business (Doubt).

· If that blanket-blank customer had paid its bills. (Blame)

Extracted from a book titled: RECESSION BUSINESS STRATEGIES by Prof John C. Mbuya

Available from the following bookshops:

http://www.amazon.com

http://www.amazon.co.uk

http://abebooks.co.uk

http://www.exclus1ves.co.za

http://www.kalahari.co.ke

http://ww.infibeam.com

http://www.booksprice.com

http://bn.com

http://kalahari.co.za

RECESSION BUSINESS STRATEGIES

Your company’s creditors are literally or figuratively breaking up

furniture in the waiting room. Your key sales manager has

resigned. The company’s credit lines have been canceled by the bank.

You can’t pay for advertisements placed six months ago. The

process server brings ten lawsuits a day demanding payment.

Your accounts payable clerks cannot stand the stress of taking to 

dozens of calls each day and not having a new story to tell the

creditors. The production department lacks raw material to

produce saleable merchandise. The bank is calling you

persistently for an updated financial report. A reporter for one of

the industry’s trade journals is calling to confirm a rumour that

your company is in deep trouble. The stress is building and your

head is pounding. Does that sound strange?

Extracted from the book titled: RECESSION BUSINESS STRATEGIES by Prof John C. Mbuya

Available from the following bookshops:

http://www.amazon.com

http://www.amazon.co.uk

http://abebooks.co.uk

http://www.exclus1ves.co.za

http://www.kalahari.co.ke

http://ww.infibeam.com

http://www.booksprice.com

http://bn.com

http://kalahari.co.za