Case ROSE Bikes: Stronger Together—Even on Tough Stages

In recent months, many small and medium-sized enterprises (SMEs) have faced existential crises due to challenging economic conditions, the unique structural situation in Germany, and the lasting effects of the COVID-19 pandemic. The situation has been further exacerbated by sharply rising capital costs, increased risk aversion among financiers, and repayment obligations from the pandemic period. According to enomyc author Dr. Stefan Frings, these multiple crises present the perfect opportunity for decisive and consistent action. Often, it takes significant pressure before stakeholders are willing to confront harsh realities and, with careful consideration, bring an end to long-standing but unsustainable practices.

Dass sich die Krise erst jetzt, knapp drei Jahre nach Ausbruch der Pandemie, in Bilanz, GuV und Cashflow der Unternehmen bemerkbar macht, ist auch auf die nach wie vor gestörten Lieferketten zurückzuführen. Materialknappheit und fehlende oder immer teurere Transportkapazitäten vor allem aus Asien beeinträchtigen den Zufluss von Produkten und Teilen. Um in dieser Situation eine verlässliche Warenversorgung sicherzustellen, haben viele Unternehmen große Sicherheitsbestände aufgebaut. Auch das bindet ordentlich Liquidität.

The Corona pandemic and its consequences, including disruption of important supply chains and shortages of materials, have plunged many companies into a crisis that threatens their very existence. Small and medium-sized companies in particular are having to contend with double-digit falls in sales and earnings. Companies that failed to prepare for the crisis in good times have been hit particularly hard. So it's high time to tackle the issue of preventive restructuring now. In particular, products with an insufficient contribution to earnings, inefficient processes and cumbersome decision-making structures often lead to problems: While they can still be compensated for in good economic times, they can quickly become a threat to the company's existence in a crisis. In this situation, companies that see the crisis as an opportunity to anticipate necessary changes and implement them quickly have a clear advantage. The goal is to improve effectiveness, increase efficiency, launch growth initiatives and increase liquidity . The necessary measures should be taken proactively, quickly and thoroughly before liquidity bottlenecks force the company even further into the defensive. The first essential prerequisite to get back on the road to success is an unsparing look at the actual situation of the company with all its strengths, weaknesses, opportunities and risks.

When a recession of almost historic proportions hit many industries following the financial crisis over 12 years ago, most companies were utterly unprepared. The same happened again to many companies last year. While the beginning of the COVID-19 crisis was marked by pure economic survival instinct, companies are now faced with the challenge of finding the right strategic position to emerge from the crisis. What is important in that context? “The acceleration of digitization on the one and the realignment of the supply chain . Above all, however, what is important is ensuring a competitive cost level,” says Dr. Stefan Frings, partner at enomyc. How is that possible? What ways are there to reduce overhead costs? Find out more about key questions and switch levers that can be tackled to increase the efficiency of a company in the short term.