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.