Manufacturing Firms And Hyperinflation- Survival Options: The Case Of Zimbabwe Manufacturers (2005-2008)
This paper assesses the survival strategies implemented by manufacturing firms during hyperinflationary period 2005 to 2008 in Zimbabwe. Evidence from literature reviewed indicated that firms can implement different strategies to survive under hyper-inflation environment. Survey method was applied to manufacturing firms in Harare. Questionnaires were used for data collection from a 100 firms. Survey findings revealed that firms applied different strategies such as quantity reduction, decentralization of decision making, reducing quality of products, development of syndicates, shorter pay periods and other forms of financial, marketing and purchasing strategies. Firms which were reluctant in adopting survival strategies collapsed in business. Therefore, survival strategies were of paramount importance for companies in hyper inflationary environments.