Dr. Wisdom Enang Elucidates Profitable Practices for Corporate Entities to Adopt During Inflation
SAMPSON ENYONGEKERE, UYO
An Adjunct Professor of the North Dakota University, USA, Engr. (Dr.) Wisdom Patrick Enang has proffered the idea of Cost Management and Efficiency as one of the most guaranteed approaches that corporate entities must adopt in order to remain profitable during inflation.
Speaking with newsmen on Friday, June 14, in his Uyo office, Dr. Enang posited that inflation, which typically leads to higher operating expenses, including raw materials, labor, and overhead costs, necessitates that companies must focus on cost management and operational efficiency, in order to counteract these cost increases.
The globally renowned energy expert explained that Cost Management and Efficiency entails scrutinizing expenditures, identifying areas of waste or inefficiency, and implementing measures to streamline processes and efficiently reduce overhead.
He further enunciated that employing and embracing technology solutions such as automation and data analytics can help optimize operations and enhance productivity, enabling businesses to do more with less in an inflationary environment.
Describing inflation as a financial phenomenon that impacts businesses of all sizes across various industries, the Fellow of both the Nigerian Society of Engineers (FNSE) and the Nigerian Institution of Safety Engineers (FNISafetyE) named “effective pricing strategies” as another way corporate entities could maintain profitability, and informed that inflation necessitates periodic adjustments to pricing strategies, in order to reflect rising costs and maintain healthy profit margins.
According to the erudite scholar and renowned economic egghead, indiscriminate price hikes could alienate customers and drive them to seek alternatives. As such, companies must adopt a strategic approach to pricing that balances the need for profitability with market sensitivity.
Dr. Enang stated that this may involve implementing tiered pricing structures, offering value-added services to justify price increase, or leveraging dynamic pricing algorithms to optimize revenue while minimizing customer churn.
The Akwa Ibom born, British trained Chartered Engineer who is fully registered with, and accredited by the British Engineering Council also averred that when prices rise for goods and services, companies often find themselves grappling with increased costs, which can erode profitability if not managed effectively.
Speaking further, the value-driven indomitable and indefatigable figure revealed that effective communication with customers about the reasons behind price adjustments could also help mitigate resistance and preserve customers loyalty.
Dr. Wisdom Enang, who suggested Supply Chain Diversification as the third approach to adopt towards profitability in inflation times, also stressed that it has become imperative for businesses to adopt innovative strategies, as inflation could disrupt supply chains by driving up the cost of inputs and causing logistical challenges.
He noted that companies who are heavily reliant on single suppliers or specific geographic regions are particularly vulnerable to supply chain disruptions caused by inflationary pressures.
Known for his massive campaigns and sustained advocacy for the adoption of the right democratic imperatives and value-driven approach to leadership and governance, Dr. Wisdom Enang suggested that in order to mitigate inflation risk, businesses should prioritize supply chain diversification by identifying alternative sources of supply, both domestically and internationally.
He equally suggested establishing a relationship with multiple suppliers and maintaining better inventories, stating that this could help mitigate the impact of price fluctuations and supply disruptions, in addition to ensuring continuity of operations despite inflationary headwinds.
The Ethical and Attitudinal Reorientation Czar also proffered Revenue Diversification as a plausible mitigation against inflation risk for businesses.
Explaining further, he noted that inflationary periods can present opportunities for companies to innovate and explore new revenue streams, and that by diversifying product offerings or entering adjacent markets, businesses could mitigate the impact of inflation on their core operations and capture additional value.
Another idea proffered by the renowned public affairs analyst towards achieving profitability in periods of inflation is investing in research and development to create innovative products or services that addresses evolving customer needs. According to Dr. Enang, this approach has the potential to provide a competitive advantage to businesses, as well as enhance long-term profitability.
“Cultivating a culture of innovation and agility within the organization enables companies to adapt quickly to changing market dynamics, in addition to enabling them seize opportunities arising from inflation-induced shifts in consumer behavior.”
Dr. Wisdom Enang who consults for numerous local and international oil and gas companies, summarily opined that “navigating inflationary pressures required a proactive management approach and strategic foresight, stressing that by implementing these time-proven best practices, companies could strengthen their resilience to inflation and maintain profitability in an increasingly volatile economic environment.”
Related Posts
He further posited that as inflationary pressures continue to pose challenges for businesses, adopting a holistic approach to managing costs, pricing, and operations will be essential for long-term survival and success.
He also suggested the use of software like Duplo to gain visibility, manage vendor relationships, and automate financial operations, all of which will assist businesses maximize their economic outcomes during inflationary periods.
