Negotiation"From the discussion it is clear that organizations are faced with an alarming shrinkage in the availability of funds as obtaining credit has become harder, a fact which has resulted in driving well established businesses to the point of bankruptcy. The global recession also proves to be a considerable challenge because inflation has increased the level of risk associated with business activities and in these times of the financial crunch.
This essay discusses that smaller businesses will generally be much more sensitive to the on going credit crunch because of their limited sources of external funding, larger more well established organizations will face the difficulties of keeping a huge business set up going in an atmosphere of financial . vulnerability. Hence it would be safe to say that all sorts of businesses are facing considerable difficulties during these times. However, there are some ways that organizations can counter these circumstances. Leaders must aim to build their organization’s credit structures in a way which enable them to weather the “bitter cold shock to the credit markets” . Leaders of small to medium organizations can ensure credit approval by devising strong negotiation strategies and can also look towards other sources of external financing such as “crowd funding”. .Leaders will have to learn how to make their organizations more ‘flexible’, because surviving in today’s business environment means that organizations will have to respond to the micro-markets’ demands in a timely manner, and this can only be done if organizations are flexible.