Good afternoon everybody. Last week I was approached by HR to present on a topic on my choice I thought of some ideas and then decided that I should talk about the buzzword that we are hearing since end of 2008. V ourselves have been experiencing that for 4 months. The reason I did not disclose the topic was probably expecting mixed reactions because it is a sensitive topic and but its important to talk openly because it’s a reality and becoz v are struggling to deal and are fighting it. Things are bound to get better and will improve sooner than later. So I will be talking to u about this buzzword, its causes, effects and ways to deal with it. We have already adapted ourselves to these innovative ways. So what the topic?? Why am I showing a picturesque slide…be positive
Funny slides giving message…. Which may have seen
Real estate bubble
World wide economy shaking..
Customer and markets will buy only normally…they will not experiment
Probably commit the same mistakes…get into a comfortable zone….take things for granted… It means someone is still doing business….
We all know that….due to price, due to fear…
I have postponed my purchase of LCD….waiting and watching…. Customers…asking for Cisco alternative..for maybe 12-18 months…
We definitely are in a major recession situation because whole world GDP has been progressively going down for 3 Qs
Can anyone tell me the difference or similarity….
Currency crisis money evaporating Energy crisis war situation----and I will show u how Under consumption-consumers not spending Over production…because of above Bankruptcy—meril lynch, lehmann brothers, nortel, gm..these are the known names…imagine whats happening to the SMEs… Credit crunches Unemployment….the biggest effect
We can never forget these pictures….can we.
Read the slide
ORDER DRYING UP…50% CUSTOMERS DELAYING ORDERS. MONEY IS STUCK
READ THE SLIDE
Ho do we fight and deal with this situation….and innovate
I liked and I downloaded this…. So the scenic picture is my last.
Need to be patient and stay together. Work REALLY as a team…
Sell emotionally and empathetically…..who ever knows this art will succeed.
TRAINING IS AND LEARNING IS JOURNEY….ALWAYS GOOD FOR SUCCESS
WE ALL KNOW THIS…BECOME PERSONAL ITH EMPLOYEES..
WE ALL LIKE TO RELATE TO SUCCESSFUL COMPANIES. MOST OF THESE COMPANIES HAVE DEMONSTRATED THAT SUCCESS MEETS SUCCESS…IN WHAT EVER SITUATION
What do they do
ANY GUESS WHO BECAME NO 1 HENCE….AND TILL TODAY.
THIS IS APPLICABLE TO US. EG-THE WATER COMPANY SUPPLIER-ALMANAL-delivered Friday morning….
RECESSION AND INNOVATION <ul><li>Munish Malhautra </li></ul>Youtube1
<ul><li>RACING AGAINST THE CRISIS </li></ul>Markets will select the best adapted varieties of brands to survive and to develop. This process is well known as natural selection.
<ul><li>DONT LEARN FROM PREVIOUS CRISIS : </li></ul><ul><li>IN TIME OF CRISIS, WHILE SOME CRY, OTHERS ARE SELLING TISSUES </li></ul>
<ul><li>Recession kills customer loyalty. </li></ul><ul><li>68% of consumers are brand-switchers !!! </li></ul>
<ul><li>Consumers are more rational - They go more often to the supermarket but buy less. </li></ul><ul><li>They put off major purchases </li></ul><ul><li>Use social-media as a source for making product purchasing decisions. </li></ul><ul><li>And trade down to cheaper alternatives!!! </li></ul>
<ul><li>“ Maybe, instead of cutting it is necessary to find a cheaper product”. </li></ul><ul><li>"Those who do not innovate, stagnate” . </li></ul><ul><li>Philip Kotler </li></ul>
<ul><li>What is Recession? </li></ul><ul><li>In economics, the term recession generally describes the reduction of a country's Gross Domestic Product (GDP) for at least two quarters . </li></ul>
<ul><li>GDP = C + G + I + NX </li></ul><ul><li>"C" is equal to all private consumption, or consumer spending, in a nation's economy. </li></ul><ul><li>"G" is the sum of government spending. </li></ul><ul><li>"I" is the sum of all the country's businesses spending on capital. </li></ul><ul><li>"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports) </li></ul>
RECESSION = WHEN YOUR NEIGHBOR LOSES HIS JOB DEPRESSION = WHEN YOU LOSE YOUR JOB
Example: September 11 Terrorist Attack in US ; India-Mumbai Got Attacked ; Pakistan Got Attacked ; Series of such incidences lead into war situation
CONTINUED IN NEXT SLIDE Terrorists’ Attack on 11 th September in US Created fear in people People cancelled their travel plans Airlines & Hotel Industries badly hit Resulted in low occupancy rates Airline & Hotel Industries offered discounts, gift coupons, to attract people But, still, no improvement in occupancy rate Airline & Hotel Industries started “ Cost Reduction” activities
Terrorists’ Attack on 11th September in US i] Reduce No. of flights ii] Lay off people iii] Salary reduction to “ Not laid off people” In flight meals reduced Low or No income to spend and buy goods They became careful due to the fear of loss of job Meals supplying company got the hit Catering company now, lays off people Demand for other goods come down Started saving money instead of spending Demand for other goods come down Airline & Hotel Industries started “ Cost Reduction” activities
So, you can see how the hit on Airline and Hotel industries can affect “Un-related” industries in the end; One industry can hit many other industries when the confidence level of millions of consumers & producers drastically comes down ;
Is your company “Chasing Its Tail” or experiencing the "Fatal Five" danger signs: – Slowed growth – Decreased revenues – Increased costs – Lower profitability – Unpredictable cash flow
<ul><li>Companies facing: </li></ul><ul><ul><li>Uncertain times </li></ul></ul><ul><ul><li>Political uncertainty </li></ul></ul><ul><ul><li>Recession </li></ul></ul><ul><ul><li>Stock market down </li></ul></ul><ul><ul><li>Housing market bad </li></ul></ul><ul><ul><li>No succession planning </li></ul></ul><ul><li>Companies want: </li></ul><ul><ul><li>To save money </li></ul></ul><ul><ul><li>To make money </li></ul></ul><ul><ul><li>Employees to be more productive </li></ul></ul><ul><ul><li>Succession planning </li></ul></ul><ul><ul><li>To Grow </li></ul></ul><ul><ul><li>To Innovate </li></ul></ul>
<ul><li>"Organization doesn't really accomplish anything. Plans don't accomplish anything, either. Theories of management don't much matter. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds." </li></ul>General Colin Powell
<ul><li>Training the existing human Resource and enhance </li></ul><ul><li>their skill set to get more revenue in other fields. </li></ul><ul><li>Improve loyalty and moral of old employees. </li></ul><ul><li>Improve leadership skill by training </li></ul><ul><li>Motivate old employees and help them match their </li></ul><ul><li>individual goals with organizational goals. </li></ul>
COST EFFECTIVE METHODS OF TRAINING TO BEAT RECESSION <ul><li>The employees should be motivated so as to link their personal goals with the organizational goals. </li></ul><ul><li>People without personal goals tend to move towards negativity. </li></ul><ul><li>If Negativity is the lock, Motivation is the key </li></ul>MOTIVATION
Move out of the overcrowded market space. • Move into a new market space where there is no competitor – wide open playing field of potential revenues and profits. • Forward thinkers are shifting their focus from recession to recovery … and they will be poised for growth when the economy turns around .
They all expanded their sales, profits and market share in a recession , and most went on to dominate their category.
They maintained or increased their advertising and promotions while their competitors were cutting back! They focused on opportunity, not fear. They saw a vacuum left in the market and filled it.
“ The company courageous enough to stay in the fight when everybody is playing it safe can bring about a dramatic change in market position.”
During the 1920s, Fords were outselling Chevrolets by 10 to 1. In spite of the Depression, Chevrolet continued to expand its advertising budget, and by 1931 Chevrolet took the lead . 1933 Ad 1927 Models
In 1990 Nike and Reebok were virtually tied for first place in sales.
“ During the 1990-91 recession, Nike tripled its advertising spending, while Reebok cut back.”
“ When America emerged from the recession, Nike's profits were nine times higher than they were going in – and Reebok has been eating dust ever since.”
Wal-Mart founder Sam Walton, on the 1991 recession “ I’ve thought about it, and decided not to participate” Two years later, Wal-Mart’s share price was up 200%
<ul><li>Reassurance and confidence </li></ul><ul><li>Purchases that minimize risk </li></ul><ul><li>Familiar brands that reduce uncertainty </li></ul><ul><li>Extra value </li></ul><ul><li>Improved service </li></ul>