STRATEGIC OPTIONS IDENTIFIED BY THE SUB-COMMITTEE

COST REDUCTION

• COST CUTTING is a key strategy to

turnaround.

• Comes under Crisis Stabilisation,

wherein our top priority is to improve
our immediate Cash Flows following the
MEXIT.

• We have already outsourced much of the Accounting department

functions which has helped save costs.

• Alternative Source for all material imported from CETA can be found
maybe from a major domestic supplier. Our aim will be to find supplies of
same quality for same or better price, in order to reduce the adverse
impact of potential increase in material costs due to weakening of M$
against C$.

MARKET EXPANSION

• Telford Engineering can take MEXIT

as an opportunity to expand its
foreign markets beyond CETA.

• Although exports volume to CETA will

fall, the potential weakening of M$
can be used as an opportunity to deal with other countries as they will
find our products more affordable now.

• This will help us fill the Revenue Loss created by reduced exports to
CETA.
 PRODUCT DIVERSIFICATION

• Our core function is manufacturing trestles for

bridges.

• We can protect ourselves against reduced revenue by

diversifying our product range.

• We can use our spare capacity to manufacture a new

but related product such as mast-climbers,
equipments for dam constructions and other scaffolding solutions.

• Reduced dependance on single product for revenue will diversify our risk

VALUE CHAIN RECONSTRUCTION

• Value-chain is basically the pattern of activities

undertaken to deliver value to customers.

• Organising the Value chain effectively is an important

aspect of gaining competitive advantage.

• Reconstructing legacy value chains to offer different

value at different prices and costs is often overlooked as
an important part of continuous improvement.

• Continuous and incremental improvements in our value

chain by seeking more & more efficiency and
effectiveness in the way activities are carried out is of
great importance in today’s competitive world.

• Value chain reconstruction, however, is not incremental;

rather, it is a large-scale transformation of an existing
value chain into a completely different pattern of
organisation.

• Such a radical reconstruction can be a very important

turnaround strategy.