Debriefing Report for VoIP2.biz, Inc. to staying with the current plan will have several implications on the business. It would mean that the company would continue to experience the uneven cash flows hence more losses. It would mean that the company will be operating on a loss basis hence showing no need to be in business since the aim of the businesses should be to make profits (Dawson, et al 2012). It would also show how general public that the company is not flexible hence cannot be relied upon since technology keeps on changing due to the advancements. On the other hand, remaining with the current plan would mean that the company is willing to prove to the outside world that it is possible to come out victorious and start operating on profits once again. Proving the people wrong would have an added advantage to the company as it will win the people’s loyalty.
Closing down the company should be the last resort. Giving up so easily should never be an attribute of the business people. Closing down the company will contribute negatively to the economic growth of the country. It would also show the weaknesses of the company, and the rival competitors could take advantage of the situation to deter entrant into the market at a later date. Closing it down would lead to many unemployment people as the workers would be rendered jobless upon its closure. Frustrations will take toll on the employees and some of them could even opt to indulge into criminal activities to be able to meet their daily needs. The lack voice telephone lines would be a huge blow to the consumers since the services would not be effective.
Selling the company would be another option by the management to be able to recover the losses. However, selling the business would not necessarily mean anything in terms of profit realization (Brown, C. 2012). It would mean that the shareholders are given their dividends depending on their contributions. Selling it in haste could also lead to the company being sold at a throw away price as the buyers would realize the level of desperation and disappointments of the shareholders due to the uneven cash flow. If money got form the sale of the company would be used to acquire another one in a more accessible location that will be able to tap the highest revenues as possible, the better. The legal requirements should also be considered to avoid any inconveniences to the buyer and the cost implication. Sometimes, before disposing an asset, there are several legal requirements that lead to incurring more costs and should be avoided as the company seem to be suffering from the financial crisis.
Slowing down the rate of growth would ensure that the customer demands are not met. It could lead to loss of loyalty from the customers and this leads to massive financial losses (Clement, et al 2013). On a positive note, the company can be able to manage its finances since the operations will not be many. The reduction of the burden of having to cater and be in the different locations would mean that it gives room for other competitors to come in to supply the network materials. Some of the revenues would be lost in the process but the strategy would help the company mend its inefficiencies while formulating new strategies and policies that would help the company evade such inefficiencies in the future.
Asking for a 90 day extension to take care of the cash flow problem could be interpreted as new reforms to be formulated. It could be to the advantage of the company as the management would have ample time to analyze their previous strategies that led to the cash flow systems. Applying their expertise, knowledge and skills to scrutinize the cash flows systems would help them realize the causes of their problems, and they would therefore; do away with them (Brown, C. 2012). The ninety day break would help the company regain a new image to the public taking the market and competition to where they should be.
Reduction of the expenses would be the best solution if best implemented. Some of the unnecessary expenses incurred should be avoided in the company. For example, the advertisements expenses in the media could be reduced since they consume a lot of revenue. Some of the employees who did not possess the skills should be laid off and encouraged to gain the skills first before entering the labor market. It would have helped them realize more profits. The cash flows would improve with the reduction of the expenses hence it would be to their own benefit.
Other possibility to be considered would be merging with other companies to strengthen their cash flows. Integration with other companies in the same field would strengthen them in terms of gaining a greater market share and expanding on their strategies to maximize their profits (Dawson, et al 2012). It would also mean that the products and services would be compliments hence increase in sales as purchase of one component would result to the urge to buy the other to be complete. Merging helps the companies share ideas that are kept confidential and are used for the advantage of the parties involved.
Dawson, R., & Bynghall, S. (2012). Getting results from crowds. San Francisco: Advanced Human Technologies.
Brown, C. V. (2012). Managing information technology. Upper Saddle River, N.J: Prentice Hall/Pearson.
Clements, J., & Bernstein, W. J. (2013). The investor's manifesto: Preparing for prosperity, armageddon, and everything in between. Hoboken, N.J: Wiley.