We Should Be Sad For The Loss Of These Companies Right?
There have been so many companies that have gone out of business this year and many have been small whereas many of them have been huge?
Woolworths PLC
Well as a former member of the group I must say that I know exactly why the company closed and part of it was indeed down to the poor fixed asset accounting that the company had been doing. They had over 800 stores and quite simply they had a team of idiots behind the company. The directors actuall knew the company was in serious trouble and they just didnt seem to try and do anything about it at all. This obviously failed and I must say a lot of this was to do with the thick headed directors not being able to manage their assetsThis obviously failed and I must say a lot of this was to do with the thick headed directors not being able to manage their assets.
XL
A lot of this was of course down to the fuel prices that had been steadily on the rise in the late part of 2008 and the other was that XL were not filling their planes. Planes were of course the major asset of the company and because of this they were clearly not managing their assets in the best way. One of the other reasons that this company fell is because the recession had started to make people stop and think about going away.
MFI
This is something that can be put to many other things again. One of the major reasons is because they didn’t really put enough time into caring for their customers. The offers that they had were always lying and didn’t include what you thought was included in the deals. Another big problem is that they didnt realise that IKEA would come in and steal the limelight, the fact is they were the better company.
So the advice here? Get some asset tracking in there and make sure your inventory management software is perfect!
Tags: Assets, business, finance, Recession, Woolworths