Monday, April 28, 2008 ‘Crisis spells opportunities’
LEADERS in the business and tourism sectors agreed that in crisis, there are opportunities.
“You have to transform (your business) or you die,” said Eric Mendoza, president of the Mandaue Chamber of Commerce and Industry (MCCI).
Mendoza said MCCI helps member-companies tap emerging markets and expand their customer base.
He cited the furniture export industry, which is venturing into markets in the Middle East, Europe and Asia while the United States—the main market of Philippine exports—faces a recession.
Philippine exporters have been lamenting over the softening of the US market and the weakening of the dollar against the peso. Many Philippine exporters are paid in US dollars but since they use peso in paying salaries and other operating expenses, their earnings are lower now that the exchange rate is P41 to $1, compared to P50 to $1 about two years ago.
Mendoza—who joined Tourism Secretary Joseph Ace Durano, Cebu Chamber of Commerce and Industry president Edward Gaisano and Microsoft senior product manager David Lowe as speakers in a forum organized by the Ateneo Graduate School of Business last Saturday—said companies should invest in research, product development and technology to be more competitive even during a crisis.
Gaisano, on the other hand, said that in “turbulent times,” it is best to learn “financial prudence.”
He noted during the Power Talk forum that it is important for companies to focus on maintaining a positive cash flow to sustain the business.
He said if a business endeavor does not make money, it must be discontinued.
New ideas
But Gaisano pointed out that the country is not in a “turbulent situation.”
Lowe, for his part, said that Microsoft intends to sustain its growth by helping communities. He added that Microsoft’s core business is delivering products that help
companies and individuals grow.
He also stressed the importance of skills training and for companies to develop new ideas to battle turbulent times.
As tourism czar, Durano said that when he took the job as “the sales person for the country,” he pushed for an unpopular perspective to achieve growth in the industry.
Instead of focusing on the traditional market, he formulated a framework to improve market-product matching to identify the core markets, where the country can attract more tourists.
Currently, the country hosts a growing number of tourist arrivals from China, Japan and Korea. Before, tour and travel operators only cater to the US and “mature” European travelers.
Erwin Choachuy, Power Talk event chairman, said the forum was organized in response to the clamor for insights on how to deal with rising food and fuel prices.
He said the forum aims to provide the business community insights into options and opportunities in times of crisis. DME (with a report from Strawberry Yap, STC Intern)
