I’ve been reading a most interesting post at Don Sull’s FT Blog . The post – The good, the bad, and the ugly – discusses how although most firms are suffering in the downturn, for some the cause is not the downturn, but a flawed or broken business model coupled with poor execution. Sull writes:-
Most companies are suffering in the downturn, but they are not all suffering in the same way. For some firms the downturn is their only problem–a serious one to be sure, but also transient. For others, however, the recession reveals more fundamental structural problems with their business model or ability to execute. For these firms, the recession is a challenge, but not the root cause of their woes. Before setting a course of action, managers must assess whether their situation is good (strong execution on sound business model), bad (poor execution of good business model), or downright ugly (business model is broken).
He then goes on to to look at each of the three cases and uses 3 headings:-
How do you know your company is good, bad or ugly
How to use the downturn
To this reader what Don Sull wrote seems to make sense.
Looking at the post I am tempted to try and think of a list of NZ companies and whether they are good, bad or ugly. I am sure many of us can do that.
What the article does is provide some useful food for thought and raise valid questions. The content provides some criteria for assessing announcements made by organizations as they seek to deal with the impact of the downturn.
I will leave readers to come to their own conclusions as to where a particular company might fit.