How to deal with the crisis

This global financial disaster caused by the subprime mortgage crisis in the United States has spread to a global scale. Large and small financial bodies have been hit by unprecedented shocks. Some countries like Iceland have already gone bankrupt. Economists predict that the financial crisis may have caused the Great Depression as it did in 1929. Fortunately, major countries in the world have shown a positive attitude toward the rescue of the market, and various rescue measures have been introduced. China has shown great power in this financial crisis and the launch of the four trillion bailout plan has shocked the world.

The crisis has caused a sharp drop in international trade volume and has a greater impact on the domestic industries that rely too much on the international market. Like the Pearl River Delta region, this is an area with obvious outward-looking economic characteristics, and it is also the region most affected by the economic crisis this time. Many printing companies that specialize in foreign orders have experienced a sharp decline in their business volume in 2008. Below I discuss from several aspects, as a printing industry in the light industry service industry how to deal with the financial crisis.

Crises, literally interpreted, mean the meaning of danger and opportunity. In fact, this global financial crisis is a test and an opportunity for Chinese printing companies.

In response to the financial crisis, the domestic printing industry mostly adopts the cost of maximizing downgrades, tightening monetary resources, and reducing investment. In fact, reducing costs is not a matter of not investing, and it is not a matter of waiting. The environment is changing and companies have to change. Because the financial crisis has not had much impact on the domestic market, plus the introduction of the 4 trillion bailout plan by the Chinese government, it should be said that the prospects for the Chinese printing industry are not so dim. On the contrary, if the company has a good strategy, the printing company will have a very good opportunity for development.

So, in this context, what kind of coping strategies should Chinese printing companies adopt?

The financial crisis, coupled with the increase in the cost of printing consumables and the promulgation of new labor laws, the pressure on printing companies is indeed much greater. How can we reduce costs, and with the changes in the conditions of the domestic market, we must first reform the rough business model. In the past few years, printing companies have introduced new equipment and increased production capacity in order to obtain greater profits. Now, it is the internal management of companies that needs to devote more energy. This includes two aspects: business operations management and product quality management. First, adjust the company's internal structure, including storage, procurement, personnel and other aspects. Warehousing, it is best able to achieve zero inventory, increase the company's cash flow, "cash is king" is now very important; procurement, choose the best supplier, try to shorten the supply chain; personnel, actively mobilize the efficiency of the staff, Reduce redundant personnel and do their job. In business management, what we need to do now is to do the most things with the fewest people; do the best things with the fewest people.

For product quality management, most printing companies in China are not doing well. In the Pearl River Delta region, the leading role of Hong Kong-funded enterprises and foreign-funded enterprises is still very obvious. Quality management is better than other areas. Product quality is the fundamental business survival. For companies located along the coast, they must start introducing advanced concepts such as 6S site management, standardization, and total quality management, strictly control quality, and make full use of geographical advantages to undertake more external orders. For example, the Bohai Economic Zone is located across the sea from South Korea and Japan, but the number of foreign orders is very limited. The key is quality.

For equipment investment, it is not wise to expand production capacity excessively at this time, but it is not a bad thing to make reasonable equipment adjustments. Taking pre-press plate making as an example, the direction of the development of plate making technology, domestic enterprises should have already seen very clearly. Moreover, with the reduction of the cost of the plate, the production cost of the CTP process has fallen below the traditional process CTF plate-making process. It can be said that the introduction of CTP can effectively reduce the cost of the company. Of course, when selecting equipment, companies should analyze the company's current situation and choose a product that is suitable for the company's situation. It is worth mentioning that the traditional PS plate making technology has received more and more attention in recent years, and the technology has also become more and more perfect.

Let me talk about development strategies. As mentioned above, the impact of the financial crisis on China is not great, but it has caused great disasters in the United States and the euro area. Many large-scale enterprises have now closed down and gone bankrupt. Some printing companies in the United States, Germany, the United Kingdom and other countries are eager to take their plants abroad. The author believes that China's powerful large-scale printing companies should take the opportunity to go abroad to set up subsidiaries in lower-cost countries, improve the company's standards, and at the same time reduce the cost of the company and participate more extensively in global competition.

The above points are some of the author's views. The environment is changing. Even if the financial crisis has not emerged, the rough operating mode of printing companies has also reached a point of change. Opportunities and crises should coexist. However, it can be said with certainty that change will not work. We also hope that Chinese printing companies can assess the situation, analyze their strengths and weaknesses, find their own position, and seize opportunities. Find the fast track of a company's leap-forward development.

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