The collapsing company (5)

“Do the hard jobs first. The easy jobs will take care of themselves,” American writer Dale Carnegie (1888-1955).

The company appeared like it has a new garment or it just came from the intensive care unit and it is recuperating now.

However, the company’s situation is still in the danger zone. Hence, after all the rescue measures, focus should be on the operational condition and daily work. But before all that, its operations must be in sincere and competent hands which will be the wings to carry the company.

As mentioned in previous articles, majority of the company’s operations are related to trademarks and commercial agencies. The new management found out that several subsidiaries are unrealistic and do not serve the new general plan of the company.

Therefore, the management decided to merge many of these subsidiaries under a single management. After long deliberations, more than 20 companies were merged. Although the organizational structure concerning the executive director remained, all of them are now under a single administration board.

Such kind of measures takes a lot of time to implement and it usually encounters administrative difficulties – whether on assets or logistics, in addition to changing the general work strategy.

Based on these strategies, the new management gave ample opportunity for the team which manages the trademark or commercial agency to prove their worth, or ties with those agencies and trademarks get severed or even selling and removing them from the company’s plans.

Naturally, by this time, the company’s condition means flattery is considered a crime against it.

When time lapsed for every work plan, results were reasonable and realistic but not as expected by the company. The most important of all is that the company made an encouraging stride which motivated it to push forward and improve its income in a stable and accountable manner, not the way it was in the past.

In addition, discipline and hard work were the ‘glamorous’ themes of that difficult period the company has gone through.

Several months after implementing the first phase of the merger, 22 companies became two. One of these companies is for trademarks – all brand names are represented by the company, while the other is for commercial agencies – majority of which are franchises.

Therefore, the company ended up having only two headquarters, instead of many as it was in the past. This made the company save a huge amount and eventually it had a positive impact on fixed liabilities such as loans which were reduced to more than two thirds.

To be continued.

Twitter@alzmi1969

By Yousef Awadh Al-Azmi

 

 

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