Japanese electronics, who used to be on top of the world, has been sliding these days – steadily losing money and even in danger of going bankrupt – among them is Sharp Corporation. What happened?
Why, advancing technology? Even those outside the company understands this side of the competition – So?
Leadership Deficiency. The primary objective of for-profit organizations is clearly to make money; hence, planning, strategies and execution should be highly efficient. But what if it’s not?
Sometime in 2007, Sharp invested $4.4B in a huge factory to make cheap, wide-screen televisions; however, when rivals learned of this, they produced at economies of scale resulting in losses for Sharp including a “misdirected” plant.
• Sharp should have had greater foresight and a flexible plan.
• When you are into something Big specially – Act more, talk less. Don’t just publicize schemes and moves unless you are way ahead.
Be Ready to Counter-punch. This is something like boxing; unless you’re a very strong and aggressive boxer – your chances are lower if you don’t know how to counter punch.
In business, you specially can’t be overconfident or slow-moving; otherwise, your rivals would just eat you alive. You should know better that if you’re planning, they too are formulating their tactics and with great flexibility.
• Closing down plants and divisions as well as laying off are obvious maneuvers by firms on the downside and trying to cut costs.
• Consider converting plants and selling assets to generate revenue; for in the end, businesses flourish because they really earn and not simply because they cut costs.
From Red to Sustainability. Specially if you’re losing money, but, you still want to stay in the same business – Be a Leader – in Innovation or in Marketing.
What? But how??
Hire and invest in forward-thinking Leaders and Real Talents if you want a “turnaround”, or a change-ready and thriving organization. After all, a company’s greatest asset is its people – those who are really passionate of Making A Difference.
What’s your take?