One, make a diagnosis of our strengths and weaknesses and then adjust them to the conditions in which we live. Two, locate the megatrends that allow us to build a five-year approach (these cannot be reversed but must be included in the medium- and long-term strategic planning project). Three, detect the changes that come at high speed and that are erratic.
Thus, for example, an element to consider at this time is the volatility that exists with the exchange rate or the increase in the cost of money in such a way that, putting all this in the equation, it is very pertinent to be clear about the impacts that will be they may have with credits, but above all how this will trigger multiple consequences: more expensive merchandise, a higher cost of credit for suppliers, surcharges in freight transport…
A wise piece of advice for times as uncertain as the present is to make adjustments to the situation but not to the structure. In other words, don’t change teams, avoid substantive short-term changes, don’t lose strategy, and much less lay off essential talent. In taking risks, it is important not to lose sight of the fact that, in the end, these types of recessive waves are temporary, finite.
Now, immediately, the mind set of an investor or whoever has a business has to consider cost control, identify which ones are justified and which ones are not to negotiate with suppliers and define the best formula that allows all the actors in the chain to assume the price increase. That said, we must take care of the inflation that comes from costs and expenses.
Another story is the credits. The interest rate is going up and so the cash going to the debt will be higher. Therefore, it is very important to be clear that more money will have to be allocated only to pay interest. Also, what will happen is that debtors will take time to pay, so you have to be very careful with accounts receivable.
In the face of a recession, it is necessary to measure whether the business will be affected by a ‘slowdown’ in the sector in which it is located, since operating in an elastic industry is not the same as inelastic. With this, telephony will be the big winner in this story because it has the ability to quickly transmit the impacts of costs and expenses to its customers. Banks will also increase their profits.