April 28, 2017

Xerophilous Organization - Surviving the Business Cycles

Meaning of Xerophilous

from The American Heritage® Dictionary of the English Language, 4th Edition

adj. Flourishing in or adapted to a dry hot environment.

from Wiktionary
adj. Being able to thrive in dry weather.

from the GNU version of the Collaborative International Dictionary of English
adj. Drought-loving; able withstand the absence or lack of moisture.

from The Century Dictionary and Cyclopedia
In recent usage correlated with xerophyte and equivalent to xerophytic, properly in sense 1: first used by Thurmann (1849), who regarded xerophilous plants as correlated with dysgeogenous soils.

Loving dryness: in botany noting plants which are in various ways peculiarly adapted to dry, especially to hot and dry climates, as by possessing coriaceous leaves, succulent stems, etc.;

So What is Xerophilous Organization: In one sense it is an organisation planning for business scenarios under global warming. Many warnings are there regarding global warming and the hot climate. Is any organization planning to do business in that environment? Is it developing products that are especially required in more hot climates?

In a second sense, xerophilous organizations have contingency plans ready to take low demand situations. That is when the demand for the products of the company dries up, how does the company change its course of action to survive the low demand period of the existing products. Is it flexible enough to reduce its fixed costs quickly and thus survive the low demand period?  Does it have innovation capability to come out with new products that use existing facilities and provide the capacity utilization that is at least sufficient to break even for certain number of years require to build demand that will give profit?

Top managers have to look at opportunities to expand business but there are years when instead of a growth opportunity they may face a year of contracting demand. What are they going to do? Top managers have to spend time on this issue and keep a plan ready to face dry years of business.

Top Management Challenges

This article is part of #AtoZChallenge 2017 for Blogging Posts. My Theme for the Challenge is Top Management Challenges - Full List of Articles  http://nraomtr.blogspot.com/2016/12/a-to-z-2017-blogging-challenge-top.html

To Know More About A to Z Blogging Challenge

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