GM stock prices of late have given nightmares to investors everywhere. The corporation has lost 90% of its peak market capitalization during the last 12 months. News wires furiously deny talk of bankruptcy. Company executives are focused on getting their shares of the bail-out plan from Washington. They are way off-mark in my opinion.
GM stock prices could happen to anyone. Companies all over the world have faced similar situations in the past. Consider the following case:
I must confess to bias in selecting this example. I have worked under the turn-around genius in this case, albeit for different employers. Dr. Sohoni is my business Guru. I continue to watch his adroit moves in wonder. More to the point, as you may be concerned, is that the 'Sohoni-approach' can resuscitate GM stock prices.
Here is my Mantra for the imbroglio of GM stock prices:
1. Sell marginally-productive assets to corporations that can use them better.
2. Hive-off high value technology development assets in to autonomous entities, free of inherited cost structures.
3. Ignore traditions and conventions in cutting operating costs to the bone.
4. Stop cash-loss operations yesterday.
5. Communicate like Winston Churchill, inspiring people to give their blood and other vital fluids for a greater cause.
That is all there is to it. Post below or write to me at drsbanerji@gmail.com if your business threatens to go the way of GM stock prices.
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