Cashing In On A Slump
Indian Management|November 2019
Cost-cutting across the spectrum is just a rushed response. Thrift would bring in value only when a company understands the nature of the slowdown and thinks long-term.
Ambi Parameswaran
Cashing In On A Slump

After a steady trot at 7 percent, India’s GDP growth has hit a speed-breaker during the year 2019. There is still a lot of debate on the nature of the slowdown. The media has been crying hoarse about the decline in sales in the auto sector; and the decline in sales offtake reported by the auto majors is indeed alarming. What was a surprise to this author is the slowdown even in the offtake of two-wheelers. Fortunately, not all sectors are affected to the same degree. Packaged consumer goods are continuing to grow, albeit in modest single digits. Healthcare and pharma are doing fine. Consumer durables are slowing down, but to a lesser extent than automobiles. Real estate is also in the dumps.

What is the slowdown due to?

There are many theories doing the rounds to explain the present (2019) slowdown. Before I address some remedial measures, I thought I should outline my understanding of the various reasons attributed to the slowdown. One big reason, at least with respect to real estate and auto sector, is the tightening of lending rules for NBFCs and banks. The other reason often cited is the stress caused by demonetisation and the implementation of GST (I am not sure how valid these issues are, now that both events are behind us by more than 24 months). Yet another reason is the rural stress and the tempering of agriproduce prices. Add to these reasons the global concerns of a slowdown triggered by the trade war between China and the US. As you can see, most of the above issues are beyond the control of a CEO of a mid-sized Indian company. So, what are they to do when their business is facing a slowdown?

What is the ‘colour’ of the slowdown?

Before we can look at the playbook to fight a slowdown, it is important to understand the colour of the slowdown. What do I mean by ‘colour’?

Esta historia es de la edición November 2019 de Indian Management.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición November 2019 de Indian Management.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE INDIAN MANAGEMENTVer todo
Trust is a must
Indian Management

Trust is a must

Trust a belief in the abilities, integrity, values, and character of any organisation is one of the most important management principles.

time-read
6 minutos  |
July 2023
Listen To Your Customers
Indian Management

Listen To Your Customers

A good customer experience management strategy will not just help retain existing customers but also attract new ones.

time-read
4 minutos  |
November 2021
The hand that feeds
Indian Management

The hand that feeds

Providing free meals to employees is an effective way to increase engagement and boost productivity.

time-read
4 minutos  |
November 2021
Survival secrets
Indian Management

Survival secrets

Thrive at the workplace with these simple adaptations.

time-read
5 minutos  |
November 2021
Plan backwards
Indian Management

Plan backwards

Pioneer in the venture capital and private equity fields and co-founder of four transformational private equity firms, Bryan C Cressey opines that we have been taught backwards in many important ways, people can work an entire career without seeing these roadblocks to their achievements, and if you recognise and bust these five myths, you will become far more successful.

time-read
4 minutos  |
November 2021
For a sweet deal
Indian Management

For a sweet deal

Negotiation is a discovery process for both sides; better interactions will lead all parties to what they want.

time-read
5 minutos  |
November 2021
Humanise. Optimise. Digitise
Indian Management

Humanise. Optimise. Digitise

Engaging employees in critical to the survival of an organisation, since the future of business is (still) people.

time-read
5 minutos  |
August 2021
Beyond the call of duty
Indian Management

Beyond the call of duty

A servant leadership model can serve the purpose best when dealing with a distributed workforce.

time-read
3 minutos  |
August 2021
Workplace courage
Indian Management

Workplace courage

Leaders need to build courage in order to enhance their self-reliance and contribution to the team.

time-read
5 minutos  |
August 2021
Focused on reality
Indian Management

Focused on reality

Are you a sales manager or a true sales leader? The difference, David Mattson, CEO, Sandler® and author, Scaling Sales Success: 16 Key Principles For Sales Leaders, maintains, comes down to whether you can see beyond five classic myths that we often tell ourselves about selling.

time-read
5 minutos  |
August 2021