When just in time is out of time

Today we see the sad end to the Woolworth retail story. 

Shoppers fighting over the so-called bargains as the management seek to squeeze every ounce out of  this once proud bastion of the high street. Regardless of what analysis is reached, when all is said and done it seems that here is a company that has been constantly sailing too close to the edge. 

Many retail operations work on the assumption that they lead the market. In truth, very few do and like lemmings, they follow their competition. Of course, it is the businesses that get in, and out, early on that make the real money. Whilst just-in-time works for manufacturing, retail requires stock at the point of sale when the customer is there. 

If your business is retail based, make sure you don't make the same mistakes as Woolworth.

Guy and Madonna show us the way

So, Mr & Mrs Ritchie have decided to call it a day. No great surprise there. But in doing so, they have demonstrated that you can still end a relationship, no matter how multi-layered, with dignity.

There is a good lesson here for us in business. We often hang on to failing businesses or favourite ventures, in the misguided hope that we can turn it around. Look at the current disastrous position that Woolworth's have got themselves in. 

When we see that despite the best intentions, we cannot make a business or a division a success, we need to boldly take decisive action. Like a surgeon removing a tumour, the cut must be quick, lest we allow the rest of the body to be infected.

Dangerous times in far-off waters

As we read about the tanker hijacked by Somali pirates, it seems a good analogy for some of the less than sensible business decisions made.

Often I come across companies that have embarked on completely new areas of business, either because they have perceived an opportunity or they thought it would be good to conquer a new market. However, after the first flush of success, they come unstuck.

Management teams must realise that leveraging success in new markets comes from building n that which one knows. It is far better to seek out opportunities in fields where there is obvious synergy with an existing successful business. This approach, though guarded, can still bring rewards and will ensure that the organisation will not be left to the mercy of parasites who feed of others success.

Seeing the real story

Whilst we all argue about when the UK actually went into into recession, rather than let the government tell us it has yet to happen, I came across an interesting article on the BBC website.

The link is  http://news.bbc.co.uk/1/hi/business/7695746.stm  It essentially follows a number of businesses as they feel the credit crunch at first hand. It will be interesting to follow their progress over the coming months.

One thing is clear; anyone who thinks this economic downturn will be over quickly is certainly fooling themselves.