Telford Engineering

STRATEGIC OPTIONS IDENTIFIED BY THE SUB-COMMITTEE

By Muhammad Ahsan-4359806
COST REDUCTION:

• COST CUTTING is a key strategy to turnaround.

• Comes under Crisis Stabilization, 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 dependence 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.

• Organizing 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 organization.
• Such a radical reconstruction can be a very important turnaround strategy.