When I read a news piece that due to Pandemic many renowned companies and brands are either wounding-up or taken drastic steps, I wondered –
Are these companies/brands really so big? OR they are projected as big? For a common man, yes, they are big – why? Because they are very pricy and only certain class of people can afford. If average brand has normally 20-30% profit margins then logic suggests that these brands should have profit margins of up to 50% and more. If this assumption is correct and if these are the brands which are in the market for more than a few decades and has world-wide presence then why can’t these brands/companies survive one or two bad year/s?
Probably, no one was prepared to face the Pandemic situation and its devastating spread throughout length and breadth of the globe. Does that mean no business forecasting models can ever factor such a situation and account for it in its budgeting and forecasting?
One pole will be countered by another and the flux between them will serve dynamic damping. Vacillations in the flux density decide the system profile which in turn determines growth and decline of the system. All along, the humans in between will bear the outcomes—good or bad. There is no choice, but to enjoy like the Corona conundrum.
Within this matrix, the people of India have no reason to worry provided they have a government that governs. But it is important to know that China is not occupying any of the two poles yet. And the way it goes, it is no likely China reach there in the near future. Nor India; it’s not necessary, if it can rationally deal with China, and the rest of it globally including those within India.
Even if the answer is yes, then what our ancestors preached a philosophy of saving 1/3rd of your income every month/year for rainy days, is an evergreen and all-weather prudent financial planning.
It also raises doubt about company’s financial statements, which shows hugh reserves and surpluses balances – whether in reality these balances are for real or mere book entries or may be siphoned-off?.
Certain polices of the West, are arguably questionable and fundamentally unsustainable – like if the person is unemployed, he can apply to the Govt for unemployment sustenance allowance. Why? That too, at an age below 55-60 years? Why such person can’t think of adapting to the changed circumstances, add-on to his skill-sets, mentally be prepared to take up any other – may be lower paid job? Such policies basically kill the killer instinct in the person and need for struggle for survival.
At least in developing/under developed Nations, I can imagine Govt. giving free/subsidised food to the BPL families but not free (I mean without work) cash.
A look in retrospect might suggest unemployment rates in developed nations is higher than in developing nations. In a way it suggests, employers there are not much concerned about employees’ welfare that too when it matters most.
Many financial strategies like credit default swap, leveraged buyouts, deep discount lending and borrowing, sub-prime lending etc which are looked upon as signs of developed financial markets need to be questioned? Are these strategies fundamentally sound or just projected as high funda financial gimmicks?
It seems, we have not learned lessons from 1997 South-east Asian crises, 2008 sub-prime crises, lest 1930 great depression.
Does that suggest expansionist business approach(growth) at any cost, can not be sustainable business strategy? Does it again underline importance of emotional and social quotient in business and business managers?
If we go with the hypothesis that the world is heading for another recession – with known cause i.e. Pandemic but still unknown effects, we need introspection about everything including the way of living life, the way of doing business etc.
The situation once again highlights the importance of society values, ethics, empathy with fellow brothers and sisters, role and contribution of environment and its sustainability, ecology, prudent use of scarce resources, if I may call these factors as pillars of any economy and economic prosperity cannot be a sole driving force.
At least on these accounts, India is better poised to face the Pandemic situation with its traditional values, culture, resilience and grit. Competency and calibre have already been proved. It may sound a bit long shot but the current downfall of superpowers could be the beginning of a new dawn for new players and new world order.
If education (formal and informal) makes every person acquire most of the desirable attributes, qualities then it is high time that “our education must come to our help”.
With well enshrined values of “Vasudhaiva Kutumbakam” in Indian perspective of global society and with the able leadership believing in mutual survival and growth rather than hegemonic growth, no wonder, world has started looking at India as ‘torchbearer’ in the new world order.
Pandemic could be just a trigger in this direction.
Yes, our values, culture, education must come to our help, its long due.
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