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What is the ideal correction plan and its roles in crisis (ex. decrease spending and expenses - KSA consumers that affecting the market recently behavior -) management ?
Crisis management refers to facing business issues that crop up without any alert. In the case of Crisis management the following have to be adhered to -
1) Know what the crisis is
2) Know the cause of the Crisis - is it controllable or uncontrollable, is it internal or external, is it a business crisis, market crisis, political crisis, economic crisis, social crisis, people crisis etc.
3) Understand the main root problems and note the business activities being affected
4) Work out alternate and back up plans for the events and activities being adversely affected.
5) Balance your decision with cost control factors
6) Go slow on expansion and investment plans
7) Negotiate for temporary Rent considerations and credit extensions and honour the agreed terms
8) Convert the stocks into cash by extending good discounts and promotions so that there is no danger of dead stocks.
9) Reduce the operational expenses by optimal business timings.
10) Re-plan to use the available manpower in an optimal manner.
An ideal correction plan in hard times will take all business aspects into consideration and ensure that the negative effect is minimised.
Crisis management is about making the right decisions under pressure when unexpected challenges affect the normal flow of business. It’s not just about reacting—but responding wisely. A correction plan is a proactive strategy that helps businesses stay focused, reduce risks, and recover smoothly.
How a Correction Plan Helps in Crisis Situations:Assess the Situation First:
Before making any decisions, it’s important to fully understand what type of crisis you're dealing with—economic, operational, market-related, or social.
Identify What’s Going Wrong:
Is the crisis due to external market changes (like reduced consumer spending in KSA), internal mismanagement, or both? Knowing this helps in planning the right response.
Adjust Financial Planning:
Instead of cutting all costs, analyze where savings can be made smartly—like delaying expansion plans, reducing waste, or optimizing resources.
Flexible Operations:
Businesses should be open to changes like adjusting store hours, renegotiating supplier terms, or shifting team responsibilities based on current demand.
Keep Cash Flow Active:
If product movement slows down, use special offers, deals, or bundles to keep inventory turning and cash coming in.
Short-Term + Long-Term Thinking:
A good correction plan isn’t only for now. It should help manage the current crisis while setting the path for long-term recovery.
In Saudi Arabia, recent consumer behavior shows caution in spending. A business correction plan might include:
Offering more affordable product options.
Focusing marketing on value rather than luxury.
Reducing fixed costs while maintaining service quality.
