The market dynamism is changing from ‘consumer driven’ to ‘affordable driven’, a phenomenon that is rapidly creating imbalance between productivity and purchase capability. Consumers are not relatively comfort enough to choose from array of available options as was the practice in past (decades); rather their decision making process is now based on affordability. Affordability is subjective and varies among people depending on their disposable income. However, irrespective of their class and income, consumers have considerably lost their confidence in plastic money and unsure of future income, let alone the savings. Banks have suddenly folded their free lending tents and let the consumers to mend their own paths to recovery. The result is ‘lack of confidence’ among consumers, traders, wholesalers, manufacturers and bankers. The significant development is the suspicious attitude among commercial entities about present market economy modules and subsequently eroding the trust level among commercial entities.
Media world is also contributing to the chaotic situation by blowing hot and cold and not allowing the entrepreneurs to off their legs from gas and brakes which is already making unpleasant noises only. Media is not clear with their interpretation and confusing the market and mass by their own confused approach. The significant growth achieved by certain countries despite of economic crises around them like India and China is not largely helping economists to forecast or pretend the overall growth trend or at least the new modules. The dilemma of economists and financial experts is reflecting in media world as well.
Business managers are facing unprecedented challenges that are rarely predictable and unknown in present turbulent circumstances. The shocks and the series of aftershocks still visible in all market segments and we do not know when will we recover. In fact, business managers are wondering the kind strategy that can help them to sustain the survival or is it going to be a new way of life or new world order?
Constructing various scenarios is the order of the day for many CEOs and is still guessing which would be the best possible scenario to define the course of action or strategy. Back to basics was one of the safest strategies and a best option to restructure, but the irony is even basics are not helping at this level. Be it in a family or business houses, the immediate decisions such as cost control, budget cut, laying of employees and put hold on product innovations are all seldom helping to recover the confidence level.
In present circumstances most of us are in great stress to choose between the strategies of ‘road to recovery’ and ‘learn to live with it’. Perhaps, both strategies can be worked out to sustain the survival by adapting the ‘learn to live with it’, as a first approach and the ‘road to recovery’ could be followed up. Accepting the reality can relax the business managers and give much needed break to think on reviewing the available options including possible methodologies.
It is observed and recommended through various formal and informal discussions that ‘learn to live with it’ would be a safe beginning to new world order or road to recovery. Apparently, it has its own bitter taste that no one would like to swallow but considering the future uncertainty bitter meal is better than no meals. Perhaps, learn to live with it can allow everyone on board and sail through the turbulent weather. Maximizing the performance while accepting the reduced or controlled remunerations can help to recuperate the business institutions to some extend and give necessary motivation to the process of recovery. Top management should be taken into confidence by business owners and adequate compensations could be distributed during recovery stage. Employee’s benefits can be reinvested in the same organization supported and legalized by bank guarantees and government degrees in case of vulnerabilities. Concentrating on product innovations coupled with technological advances should not be stopped since it can create or sustain the feel good situation among manufacturers and competitors.
Team work is more important at this stage than unilateral decision process particularly for the policy developments at higher level. All departments are interdependent at one or other level and pulling them at one or other direction would be harmful to everyone. Even industry giants need to sit together to define the kind of progress or road map for certain period. A common minimum agreement or economic strategy can positively help all nations to pull the world out of danger. If not the internal bickering will drain all our energy and we would be digging our holes deeply and vigorously.