BY STEPHEN MARLOW Executive Vice President, Toshiba America, Electronic Components Inc., Irvine, Calif.

Given that we cannot control our business environment, what can we do to weather-and in fact thrive in-this downturn? The keys to success are twofold: practicing sound business fundamentals and winning in everyday business.

In terms of business fundamentals, perhaps the most important element is to ensure that the key competencies of the enterprise are clearly embodied in the strategic vision. And, that this vision is both understood by all employees and becomes the road map for all of their daily activities.

This can only be effectively accomplished through ongoing, direct communication. When realized, organizational momentum can be achieved. And with this momentum, business targets are attainable.

Second, effectively manage key assets, including customers, inventory, accounts receivable, intellectual property and employees. The customer must drive the business model, especially in difficult times. Keeping a tight rein on inventory is both prudent and absolutely necessary.

Companies must also judiciously manage both the credibility and aging of their accounts receivable. Intellectual property is the foundation of today's technology company. Investments must focus on the customer.

Employees are part of the solution, not the problem. The ongoing challenge is to ensure that the right skills are developed and available, at the right time, to add value to the business, and eliminate noncontributing activities.

The final critical aspect is the appropriate focus on cost reduction. It is relatively easy to identify and eliminate costs. The difficulty is to balance short-term cost-reduction activity with longer-term strategic needs.

Given the somber outlook-the U.S. chip market is forecast to shrink by 22 percent this year-it's clear that having a vision and strategy, managing assets and controlling costs are not enough to be successful.

A focus on top-line growth is also critical. Business has contracted, but not to zero. Systems are still shipping, and components are still being purchased. Companies that have achieved organizational momentum toward the goal of winning every real business opportunity will be less impacted by this down cycle, and will recover first.