the art of surviving
R. Karthik
I year-DOMS, University of Madras

"When the U.S. economy catches a cold the whole world is set on a bout of sneezing"
- A new wisdom of globalization

Economic scenario at a glance :
The whole of world economy is interdependent (especially the developing countries) as a result of that a small slump in one can create sustainable chain reaction. We can see how it can be sustained in the latter part of this chapter. The demand in the dot com is slowly diminishing and we are seeing a cleansing act or weeding process where only the fittest can survive.

Managing in gloomy times :
According to the Harvard business review instead of diversification during gloomy times the IT companies should concentrate on their core areas providing quality products to its customers and value added services. "Swarm Intelligence" is the latest buzzword today to put it simply it indicates teamwork. Many companies like British telecom and McGraw hill have successfully implemented this technique. Whenever individuals are found wanting in performing certain task they achieve it through teamwork. Companies instead of reporting their sales growth can report profitability growth and improvements in productivity to give a better picture about themselves.

Lessons for India :
Unlike South Korea and Taiwan we do not rely much on U.S. economy but the fiscal deficit is a matter of concern. The slowdown in manufacturing and mining sector does not augur well for our Industrial growth. The downturn in U.S. economy may see a large number of offshore projects coming to India because we possess enormous pool of manpower with quality labour and India should be ready to grab it with both its hands. An amount of unnecessary caution has crept into each company's mind interms of their spending in areas like advertising, improvements in productivity, exploring alternate markets etc.

Conclusion :
The slowdown in economy is not new for the developed countries but for countries like us we haven't faced it before that is where we as managers play a pivotal role in managing our companies through turbulent times. Remember whenever you can't succeed as an individual work as a team.

R. Karthik is a Student at University of Madras (I Year - DOMS)
Uploaded on September 4, 2001

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