It is management that takes companies forward and sinks them.

We had the opportunity to study many companies in our country and around the World. Some had various serious problems, while others were at the top of their industry. What were the considerations that led to this different position? In this article, we will briefly touch on this issue.

The most striking example showing the common characteristics of successful companies is that they have issued a realistic budget. When we see this, we understand that we are trying to be relatively planned. But the main thing is that they plan actions taken according to the goals. Let’s briefly explain;

All balances of a firm are related to its goals. No matter how realistic the company’s goal is, if the action plan necessary to achieve this goal is not correct, the company will have wasted its time. Let’s explain as follows; whether the company has set a realistic goal for dectoral developments, taking into account the global economy and the market conditions of our country (by the way, let’s not go without noting that these goals are usually set incorrectly. A number of micro-action plans are needed for this goal. Some of them include; HR policy, Purchase policy, production and inventory management policy, sales policy. A financing policy that includes all this is a must. All issues, from when and how to get a hold, how much to keep and on what terms to sell, are also issues of financing. As a rule, this detail is forgotten when determining the terms of purchase /sale, the financing unit is in trouble.

Let the company’s goals be set correctly, if the human resources, which are the most important element, have not been able to create a team of sufficient quality and quantity, the goals cannot already be achieved. It’s not just about the car park. The competence of the team is much more important. In general, it is seen that companies do not attach sufficient importance to human resources and turn to cheap employees. However, one should act with the idea that the efficient element is the cheap element. The most important mistakes are also made here. We stay in the classroom with details such as performance management, qualification criteria, as well as issues such as compliance with the team, promotion of teamwork.

Incorrect organization and incorrectly formed team both prevent the realization of the goals and cause the company to miss opportunities at that time.

Let’s say the right organizational structure is provided and the right team is formed. Then we should immediately look at the relations of financing and other units. How to decide on the form of purchase, payment terms and how to apply it? Similarly, how is the sales-financing relationship? We need to answer questions such as. If the company’s own resources are very strong, the purchase can be made with serious discounts by bulk and cash purchase, while the customer portfolio is of good quality and the company accepted by the market can accept the terms of the market. The more time and maturity a cash-paid sales policy applies, the more likely it is that it will fall into a cash crunch in the future.

It’s not just a matter of producing. Or it is not a matter of providing diversity to the customer with an excess of stock. The point is to determine the terms of sale in accordance with these conditions, while stockpiling at the most affordable cost according to the strength of available own resources.

Our last word; opportunities never end in the economy. However, if we do not see these opportunities and do not plan correctly, especially if our team is not suitable for this, then we will never be able to evaluate these opportunities.

Kindest regards,

Hikmet Baydar