Evaluate your client company’s contingency plan
Read your client company’s response, see whether it is consistent
with lessons we learned in chapter seven and whether you can improve it
by applying this week’s lessons. Elaborate at least in 200 words and
cite the lessons from the Best Practices 7 assignment.
- According to Grappone the First thing I would recommend because
their company is volatile in imports and inventory, I would first make
sure you count inventory levels. Which is exactly what they put as their
number one. Another thing the chapter mentioned was that your position
before the downturn will help determine how well you will do in the
recovery. If you have no liquid assets saved how will it allows the
company to survive? This is their number two on their contingency plan
which is very important. Even in a downturn there will be slow times so
keeping their employees engaged is pivital to their turnover rate. The
happier your employees are the less likely they are to leave. The first
thing the chapter mentions is to cut capital spending and to hault
projects that on the verge of starting. It is important to make sure you
have enough cash to get through the downturn. By delaying projects it
allows the company to focus on more important things like direct
employees and the sales of cars. The last thing on their lost is to make
sure they have enough available credit so they are able to buy cars they
are not currently selling as well as to draw down overall capital
spending.
Business response to the
questionnaire
Graponne
| Please, discuss your contingency plan for dealing with recession, if
you have one. |
Our contingency plan include:
- Tighter control of our inventory levels
- Managing our cash. Making sure we have enough liquid reserves to get
us through the downturn
- Limiting discretionary expenses. Including delaying intensive
capital type projects.
- Keeping our team members fully engaged
- Making sure we have available credit (to finance cars that are not
selling as well as lines to draw down for working capital).
|
Bank of New Hampshire
| Please, discuss your contingency plan for dealing with recession, if
you have one. |
As previously mentioned, we build loan loss reserves and carefully
monitor for signs of economic stress that may impact our business. We
have sources of emergency liquidity available, and other similar tools
to ensure the viability of the bank through a very severe downturn.
Furthermore, we stress test our loan portfolios and entire balance sheet
to determine how the bank would perform in various economic scenarios.
This allows us to determine is additional reserves, liquidity, etc. are
needed. |
Comptus
| Please, discuss your contingency plan for dealing with recession, if
you have one. |
We do not have a contingency plan for an extended recession. |