Although the European division experienced some operational difficulties, it retained a strong balance sheet presence. TaylorMade adidas Golf saw a great opportunity to acquire the company and provide a secure and long-term future for the great Ashworth brand.
Back to Basics
In my opinion, the best way to cope with a recession is to go back to basics, now more than ever.
Is it time to batten down the hatches?
When people talk about ‘battening down the hatches', the knee-jerk reaction is often to cut back what is probably an organisation's most fluid asset - its staff. My advice is to look at other options before going down that route. Discuss a reduced rent on premises for a limited period; look at all supplier contracts; supply chain initiatives; check insurance policies. Imposing draconian, arbtrary job cuts could mean lowering the quality of service that is essential to survival.
Time to focus on core competency
In buoyant times, the temptation for many businesses has been to extend their products or services. Supermarkets for example, used to sell food, but now you discuss loans and insurance with them. The key is to acknowledge what you do best and make sure you do it well. It is usually the core business areas that deliver the majority of revenue and profits.
The customer really is king
It is critical to appreciate that just as you might be going through a bad time, your customers probably are too. You need to be their partner and that is why it becomes essential to get your service right, which brings us back to the question of reducing personnel. Letting people go might come back to haunt you if you do not have the staff to deliver products to customers and provide high service levels.
Be prepared for the eventual recovery
Once you have made the necessary adjustments to get through a recession, don't forget just how suddenly it arrived, and that recovery can start just as fast. You need a sound strategy in place to be ready. For example, if it is accepted that it will be two years until recovery, then after 18 months, new product development or sales initiatives need to be in place. The window of opportunity to gain an advantage over your competition is small.
As with many industries, golf had enjoyed steady growth during the years leading up to the recession, and it was broadly anticipated that this would continue. The sudden, unexpected economic collapse has hit all companies hard. Economic history is a good indicator of trends and based on that, perhaps the widely held media view of a two-year downturn is correct. With government intervention it is imperative the banks - many of which are now owned by the taxpayers - are forced to put money back into the economy over the next quarter. This should kick start the economy, but if this doesn't happen, we can expect a more difficult and lengthy recessionary period.
Finally, don't believe what the management books and gurus say. The best people to run a business and see it through the hard times are those who understand it the most! So trust your professional judgement, discretion and common sense.
In these unprecedented economic times I would like to take this opportunity to encourage the golf industry to show determination, resilience, belief, and be ready for the recovery when it comes.
A personal reflection
Leaving Ashworth has been a very humbling episode. I have inevitable regrets, such as not taking the opportunity to play a more influential role in the future of golf. I remain extremely positive about the future, and since the news broke of my departure from Ashworth I have been overwhelmed with the support I have received from the golf industry and beyond.
Now I am focussing on my own core competencies and I am considering a range of opportunities, not all confined to the golf industry. My broad range of management skills is well suited to businesses with a similar drive and ambition for success and I hope I find the right fit in the near future.
Jonathan Camp joined Ashworth in 2000 as finance and operations director, and he became managing director in 2007. Jonathan has enjoyed a diverse career that started in the military, and led to periods in construction, recruitment and oil and chemicals, with leading international companies including Exxon Mobile and Marley Building Products.
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