UKs Economy Essay Example | Topics and Well Written Essays - 1500 words

UKs Economy - Essay Example Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. Since emerging from recession in 1992, Britain's economy has enjoyed the longest period of expansion on record; growth has remained in the 2-3% range since 2004, outpacing most of Europe. The majority of the companies where held by the government till 1940's. However, at present there is a widespread privatization of formerly government owned companies. Many leading companies are owned by or in the process of bidding for the foreign owners. For instances, Jaguar's acquisition by TATA Motors and BMW selling off Rover. Some of these owners are themselves in public sector or are only must going through privatization process. The crisis in US property market has prompted global banks to rein in lending, leading to fears of a sharp global slowdown. (Fleming 2007). (Cubbin). There are some acceptable rescue strategies that are used for rescuing corporate organisations. "Many of these strategies require internal changes, which may impact on the following areas:" (Arrangements: Working Towards a Common Goal). Pricing policy: The pricing of products of a company even if it is healthy is of great importance. The pricing of a product will be dependent on many factors like, competition for the product, its exclusivity, consumer perception etc. A company that is in financial trouble can take a look at its pricing policy and try to increase revenues though increased sales. The first thing that could be done is to see whether the products can be priced higher than it is currently priced. If, after due analysis and if found feasible, increased product pricing can help to increase the cash flow of a company in trouble. Another strategy that could be followed is use menu-pricing. This is the practice of assessing the standard price of a product and then add or lessen related services that are associated with the product. In this way the pricing of the product can be fixed so that it will be different from the price of a competing product. "Top pricing performers use menu-pricing--setting a price f or a standard service and then offering a range of service levels that raise or lower that price--differently than their less successful peers, and more often. This approach makes it possible for companies to charge customers more accurately for the cost of serving them." (Alldredge, Griffin and Kotcher, 2003). Increasing the price range of products may also be of help. Cash Management: Managing scarce resources in times of need are very important in any situation. A company in financial trouble may find itself starved of liquid assets, especially cash. A thorough understanding of the cash flow of the company should be made. From this it will be clear as to where the problem in cash flow exists. For example, it could be that debtors are not paying what is due to the company. Addressing this problem and trying to find a way out will be of great help in situations like this. Manufacturing process: A modification or restructuring of an inefficient manufacturing process can help in rescuing the company. If is a service sector company, its service process could be revamped. Staff: