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  • Writer's pictureZacrey Partners

Turn Challenges Into Opportunities: 3 Strategies Distressed Businesses Can Use To Survive And Thrive

Running a business is never easy, but distressed times can seem impossible to overcome. Whether due to economic downturn, disrupted supply chains, or changing customer demands, many businesses face intense challenges.


(1) High operating costs - Operating costs like rent, utilities, salaries can eat into profit margins for large businesses. Finding ways to control costs is a challenge.

(2) Acquiring and retaining talent - With economic growth, it's difficult to find and keep skilled staff in the thriving private sector. This increases recruitment and training costs.

(3) Government regulations/bureaucracy - Complex regulatory processes and bureaucracy involved in setting up/running a large business can be frustrating. Complying with all rules increases compliance costs.

(4) Access to financing - While credit is available, the terms may not be favorable for every project. Arranging large loans at competitive rates from local banks can be difficult.

(5) Supply chain management - Efficient procurement and inventory management becomes challenging at scale. Disruptions can impact large operations.

(6) Adapting to technology changes - Keeping up with latest technologies, digital transformations and data security needs huge ongoing investments.

(7) Economic uncertainties - Small external economic shocks or domestic political instability can impact revenue streams of big businesses.

(8) Succession planning - Grooming next-gen competent leadership for continued growth is a task for large, family-owned companies.

(9) Marketing and brand building at scale - Large marketing budgets are needed to promote brands, products and services nationwide consistently.

However, throughout history we've seen that adversity often spawns innovation. Distressed periods force businesses out of their comfort zones, prompting creative solutions. With the right strategies, you can turn the #VUCA challenges into opportunities to survive and emerge stronger.  

Read on below on how we can solve this efficiently to help you and your business navigate the VUCA Business Landscape


3 strategies to combat each challenge and help your business transform and thrive in an evolving #VUCA business landscape.

A. High operating costs:

1. Outsource non-core functions to lower cost regions

2. Adopt lean manufacturing/operations techniques to optimize resource usage

3. Explore renewable energy/waste reduction projects to control utilities spending

B. Acquiring and retaining talent:

1. Establish corporate university for continuous reskilling and training programs

2. Provide competitive compensation/benefits packages, flexible workpolicies

3. Partner with top global/regional universities for research, internships

C. Government regulations/bureaucracy:

1. Proactively engage with policymakers to streamline processes favoring large businesses

2. Hire expert consultants/advisors to ensure compliance and flag policy constraints

3. Consider relocation/expansion to a business friendly jurisdiction

D. Access to financing:

1. Consider private equity/debt funding, crowdfunding for new initiatives

2. Raise capital from strategic corporate/sovereign wealth fund investors

3. Establish captive financing arms/subsidiaries to fund growth projects

E. Supply chain management:

1. Leverage blockchain/IoT to achieve supply chain visibility and efficiency

2. Establish regional/global supplier network with multiple sourcing points

3. Invest in large automated warehouses,JIT manufacturing to reduce inventories

F. Adapting to technology changes:

1. Set up in-house skunkworks/R&D units to identify and commercialize innovations

2. Form global partnerships/M&As for complementary technology solutions

3. Recruit chief digital/transformation officers to drive tech led strategies

G. Economic uncertainties:

1. Diversify across markets/regions, products/services through strategic acquisitions

2. Maintain conservative balance sheet with adequate cash reserves

3. Build customer loyalty through superior customer experiences

H. Succession planning:

1. Establish leadership training institutes to engage and develop next generations

2. Incentivize merit-based internal promotions and professionalization of roles

3. Consider selective external hires and joint succession partnerships

I. Marketing and brand building at scale:

1. Leverage digital/social media influencer marketing and experiential campaigns

2. Launch loyalty programs, memberships to nurture communities around brands

3. Establish marketing/R&D budgets as percentage of revenues for sustained efforts

About us :

At Zacrey we architect the convergenceof best ideas, best people and bestpractices from related industries to deliver our multi-disciplinary and often disruptive results to remain ahead of the curve.

We are human centred, designempowered and technology driven catalysts of transformation that strive tobe the vanguard of Industry 5.0 driverssuch as education, environment and the creative economy.

To know more visit us or follow us @zacreypartners.

#VUCA - Volatile, Uncertain, Complex, Ambiguous .

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