Current Crisis

Current crisis: Management inefficiency or recession? Have you considered the real reason for a firm’s poor performance in 2008 and first half of 2009? If the firm’s management is pointing ‘recession and economic slowdown’ I would say it’s an easy excuse that they are making and they are over complaining about some factors.

Recession affects demand and it results in less revenue.

I believe this is an old theory of economics and marketing. If your firm is solely relying on the external variables like demands and economy, what is the use of management? What is the use of marketing?

Because, in my view, we don’t need ‘Presidents, Vice-Presidents, Directors and the so called C level Executives’ just to serve the demand in the market. For that supervisors are enough. Last two years were a kind of testing period for management’s efficiency. It was an unbiased performance appraisal for top executives. Unfortunately most of them failed miserably. They failed to see the future; they even failed to operate in the present. Their strategies and plans were useless, they failed to create demand, and they failed to give strategic guidance to the firm.

But you see what are they doing now? Instead of taking responsibilities of their own failure, they are firing front end people and thereby by creating further damage to the economy.