among employees in managerial
Why is there a need for an effective credit policy?
Due to the high level of competition in the food market, the situation is such that in order to increase the attractiveness of its products, enterprises are forced to lend to wholesale-level operators, and those, in turn, retail stores. As a result, a significant part of the company’s current assets is always concentrated in accounts receivable for works, goods and services.
Enterprises have to increase accounts receivable in order to achieve their economic goals, which can be expressed using an absolute financial indicator – “Net profit” and a relative indicator – ROCE (return on capital employed – profitability of working capital). Both indicators characterize the efficiency of the enterprise, which is expressed in the fact that the organization “does what is needed in a proper way”. Continue reading
Often, the work of consultants in the organization of the customer reminds the notorious doctor’s appointment, when a patient “diagnosed in medicine”, who independently diagnoses, requires immediate effective treatment from the doctor. So the owner believes that he himself knows the weak points of his company and he needs only immediate effective actions to eliminate them. And the help of the employees of the consulting company specialists consists mainly in getting involved in a dispute about how the word marketing should be pronounced, which does not play any role for their daily practice, but they limit its functions by studying the prices of competitors in order to offer lower prices. than market, believing that thereby will ensure the competitiveness of their goods. However, the task of organizational diagnostics does not boil down to tightening the competences of the customer’s staff to the required level, but consists in deep “immersion” of consultants in the customer’s organization; review the workflow, conduct an audit of staff, examine the processes in progress, in order to develop standard techniques for their improvement and give comprehensive advice to eliminate deficiencies. Continue reading