CRISIS MANAGEMENT By Elisante Ole Gabriel (Tanzania)

STARTING CRISIS Starting crisis is the crisis, which is the outcome of the initial (starting stage) errors of the entrepreneurs.

Types of Mistakes Lack of a Thorough Study of Market Potential for Product – lack of business plan. Lack of All-Round Managerial Ability (lack of experts, an error in managerial decisions, wipe out the entire profit of the unit)

Types of Mistakes Inadequate Arrangements for Keeping Accounts (lack of qualified accountants) Underestimation of the Capital Required (promoters do not have adequate funds for investing) Ignorance about Tax Liability (especially income).

Starting Crisis Inadequate rounded managerial experience/understanding of the line chosen Underestimation of the capital requirement for the project Lack of understanding/arrangements of accounts Wrong choice of equipments technology/project capacity Ignorance about taxation.

THE END It is expensive to manage the crisis than avoiding it The use of CRM and integrated marketing can help a great deal to avoid crisis. AND.. No need of panic when there is crisis as that never reduce the crisis but explodes!