LOSING THE SIGHT OF THE RAINBOW

Hello everyone

I was chatting with a business colleague today and it looks like companies have lost the plot.They are currently going through restructuring and it has nearly been completed. They have retrenched most of the brains and bigger salaries but what about the future.

It has cost them in excess of 100 million and will save them 30 million. Over time they will make it back but the brains have been halved along with the experience. Where will they be in 5 years? I always remember a quote from Anton Rupert who was the main man behind Rothmans. He said when business is quiet and in a recession that is when you spend more by expanding. His thought process is the opposite to most but makes total sense. When the recession is over you are bigger and stronger and in a better position to tackle your competitors.

I looked at cost savings for this company who have just blown 100 million. Just on a handful of items which they use every day i could have personally saved them in the region of 10 million per year. If you understand your business and where the wastage is retrenchments are the last thing you need to do. Obviously they don't understand their own business and it's a shame and just maybe the ones who are making the decisions should have been fired first.

I am going to see them next week to point out some savings and can't wait for their reactions. Simple people clutch at straws and I have many straws for them.