Economic Crisis ManagementMost organizations would reach a point where economic crisis and recession will be one of the critical factors that would gravely affect sales and profits. While the issue at hand is not entirely due to the cost and pricing techniques for products that are being offered in the market, it is a matter of consumer preference for priorities in enumerating their more important needs rather than going on shopping sprees for any commodity or item that they deem necessary or have been accustomed to including in their daily purchases or shopping needs.

Strategic ManagementEconomic recession will occur at any point and this cannot really be avoided in most cases. A drop in sales and decrease in profit margins is to be expected, and going through the motions of such times will be the only wise thing to do. Other factors can be partnered with such crisis, such as government intrusion, cultural issues and psychological gains. However, proper direction towards strategic management that is initially made should always be open to such events. The probability of such occurrence may eventually prove to be variable, but advanced preparations made through business plans and mapped out strategic management alternatives will always be the best advice to give towards promising corporations that are aiming to flourish business ventures for long-term goals to achieve respectable rates of returns and desirable profit margins.

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4 thoughts on “Economic Crisis and Economic Recession Management


    Why Americam management failed and resulted into great economic recession.?

    The modern (Western) management concepts of vision, leadership, motivation, excellence in work, achieving goals, giving work meaning, decision making and planning, are all well discussed and implemented but failed miserably.
    The greed is a more fundamental and better explanation than the principles of economics and the impact of government policy on economic decisions. Misses the point that most people and businesses are motivated to improve their condition and that this force is always at work. Why did greed suddenly cause this meltdown? What allowed it to get out of control. There is one major difference. While Western management thought too often deals with problems at material, external and peripheral levels, our PM tackles the issues from the grass roots level of human thinking. Once the basic thinking of man is improved, it will automatically enhance the quality of his actions and their results. If businessmen wanted to rape and pillage, I mean maximize profit, you wouldn’t have to force them to loan money. Their profit motive gives them an incentive to “serve” the community. If certain communities aren’t being served that signals the presence of other forces dissuading businessmen from selling their product or service. Implicit in this argument is the belief that customers have a right to demand the services and goods provided by businesses. Of course, this idea underlies arguments for universal health care and whatever other service or good deemed to be too valuable to trust to the market.
    The management philosophy emanating from the West is based on the lure of materialism and on a perennial thirst for profit, irrespective of the quality of the means adopted to achieve that goal. This phenomenon has its source in the abundant wealth of the West and so ‘management by materialism’ has caught the fancy of all the countries the world over, India being no exception to this trend. My country, India, has been in the forefront in importing these ideas mainly because of its centuries old indoctrination by colonial rulers, which has inculcated in us a feeling that anything Western is good and anything Indian, is inferior. Gita does not prohibit seeking money, power, comforts, health. It advocates active pursuit of one’s goals without getting attached to the process and the results.
    The result is that, while huge funds have been invested in building temples of modem management education, no perceptible changes are visible in the improvement of the general quality of life – although the standards of living of a few has gone up. The same old struggles in almost all sectors of the economy, criminalization of institutions, social violence, exploitation and other vices are seen deep in the body politic.
    The source of the problem
    The reasons for this sorry state of affairs are not far to seek. The Western idea of management centers on making the worker (and the manager) more efficient and more productive. Companies offer workers more to work more, produce more, sell more and to stick to the organization without looking for alternatives. The sole aim of extracting better and more work from the worker is to improve the bottom-line of the enterprise. The worker has become a hirable commodity, which can be used, replaced and discarded at will.

  2. The Quran like the Gita also allows free trade. More free trade than the common world however with some strict restrictions.
    The economy in any free market shall have its ups and downs. When the economy goes down it is not something bad but a trial. When the going gets tough, the tough are expected to get going. Not sit around like a couch potato watching the world through a TV tube.
    Hoarding is not allowed. Because it rips off the people. The zakat is required to provide to the neighbors and other needy in order so disorder does not break out and the poorest of the poor do not end up dying a death of hunger.
    Just like Christmas is a time of sharing. So is a recession. The people who have been provided a lot of money are tested as to their ability to share with others in the time of need of their neighbors.
    The west (specifically USA) has more because in my opinion they are not efficient but have the most innovation through the most learning centers in the world in any country. Correct me if I am wrong.


    Khawar Nehal
    [email protected]

  3. i am hoping that the global economy would recover from this economic recession. life has been very hard with these massive job cuts.

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