Chris Clarke, a strategist with A.T. Kearney's consulting unit in Singapore, says CEOs should be looking at consolidation over the next year or two. Companies need to go back to what they know best. On retrenchment, Clarke advises against simply laying off those with the highest paychecks. As for investing in bargain assets, he urges a consistent approach over time, not a lump sum. Better than snapping up fire-sale ventures, however, is investing and restructuring to boost competitiveness.
Devaluation is but one of the forces driving down prices and squeezing companies.
Even China, with its cheap land and labor, is worried. We are reducing overhead, strengthening management, saving energy and materials, and increasing production to maintain stable sales. Once built, our facilities will be world-class. For tiger economies, Huang Cheng-ming, general manager of the Taiwan Economic Journal, feels that the biggest challenge is technology. We must have know-how and generate our own products.