Firms urged to be alert to cost drivers on the economic front

BUSINESSPEOPLE should always be alert to the cost drivers on the economic landscape and keep an eye on the dynamic changes that drive costs such as policy announcements, if they are to survive the current economic meltdown, a business executive has said.

By Cloudine Matola

Speaking at the Institute of Chartered Secretaries and Administration in Zimbabwe winter school last week, Nash Paints chief executive Tagarira Mutenga said to survive in the current situation one must be alert to the policy announcements and the changes taking place in industry.

“To survive in this country, remain alert to economic policy pronouncements, changes in exchange rates and technology changes and make decisions quickly,” Mutenga said.

He said decision-making should be done in the context of the economic environment and regulatory stipulations.
For instance, the re-introduction of the Zimbabwean dollar has seen an increase in prices of goods. He said pricing decisions should protect businesses from the turmoil.

Mutenga said businesses should understand their value chain and identify the risks that matter to their businesses. The identification of the risks should be followed by an evaluation of the impact of the risks which should inform the decision-making process.

The economy has been facing major headwinds which include runaway inflation, foreign currency and fuel shortages, low production and prolonged powercuts which have crippled industry, resulting in reduced production and leaving companies on the brink of collapse.

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