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© dirk-ercken-dreamstime.com Electronics Production | October 31, 2013

Incap's plan to restore profitability

After battling decreasing revenues for quite some time, Incap initiated an extensive turnaround program in order to restore the company's profitability, and with the program comes a new strategy and mindset.
"Incap has been fighting head wind for quite some time now. The financial reconstruction achieved during the summer was the first step towards getting to a normalised situation,” President and CEO, Fredrik Berghel, stated. “Due to the past bad times some of our customers have started up alternative sources to us, and this movement has especially hurt our operations in Kuressaare, Estonia. Therefore, our situation still is challenging and restoring the business is now our main task.”

The company is now focused on what they refer to as the “three C”; Customer, Cost and Cash. Which can be described as a time delegating strategy.

“I am asking all of my employees to really scrutinise how they spend their time. If the task cannot be found in either of the three C, then it should not be done,” Fredrik Berghel said.

This is how the three C's are explained:

Customer: To communicate that we have a new situation and that we are back on track is our most important task. That is of course our sales and marketing force that do most of that work, but all of our employees have to contribute.

Cost: Our business has been shrinking. We therefore have to adapt cost accordingly. Most of the companies in the world are a lot smaller than Incap. There is nothing about the size that destines us for not being profitable.

Cash: The financial reconstruction has given us a second chance. We need to make sure that we bring in all cash that is ours everywhere.

“Even though we are experiencing hard times now, the actions that we have initiated so far are already proving their effectiveness. We shall continue with the same determination until our business is healthy and back on profitable track. The turnaround is possible and we will carry it through. And after having won this battle, we are strong enough to win anything,” Fredrik Berghel concludes.

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