Summary
Mr. Mcwilliams thank you for your honest comments, and I respect and appreciate all GLG Council members opinions. What I would like to do now is elaborate on my opinion and beliefs.
Analysis
We all derive our opinions by what we've seen and lived in our lives, with the being said I would like to take some time to explain my opinion.
Under GLG rules I can't personally name anyone pertaining to my analysis, so I will only use the term individuals.
I have an individual who is a friend of mine, twenty years ago he started a business with five hundred dollars. He had a belief that his idea would work, so he implemented his company. His marketing approach was standard, yet his idea was trendy. What happened? His company is now worth three hundred million dollars.
I have another friend who started a company on an idea, so he took a second mortgage on his home for three hundred thousand dollars and started his business. He took the same marketing approach, and what happened? A year and a half later his company went bankrupt.
This is were I derived my opinion, business is ninety percent luck and ten percent knowledge.
Now lets talk about business plans, I implemented a long range plan for my business two years ago, is It still viable? No, my company has changed directions at least three times. Why? To remain competitive.
Now let's talk about strategic plans, I have a very good friend of mine who is the C.E.O. of a very large transportation company. Has he tried to combat the weak economy? Yes. No matter how many strategic plans you implement, or how many managerial forums you implement there are three things you can't change in business.
1) An overall increase in expenditures.
2) Receivables, payments that were at thirty to fortyfive days structure, are now at ninety to one hundred and twenty days. This means your now floating receivables.
3) A lack of freight, due to a weak economy.
What can corporations do, take a look at the February unemployment numbers, corporations laid off sixty three thousand people. If a corporation streamlines to become more profitable, then they further hurt our economy.
Corporations today are in a no win situation, business plan or strategic plan, in my opinion business's can only ride the storm out.
Thank You,
Tony Sottile
