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Emerging Issues IN Management..

The document discusses emerging issues in management due to the global recession. It outlines that organizations had to adopt cost-cutting strategies like reducing finances, employees, and improving technology. It also created a need for innovation to develop new products for saturated markets. Managers had to resolve issues like cost-cutting, demand forecasting, and finding new markets to help companies sustain in the increasingly competitive business environment caused by the economic slowdown.

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eydip007
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36 views18 pages

Emerging Issues IN Management..

The document discusses emerging issues in management due to the global recession. It outlines that organizations had to adopt cost-cutting strategies like reducing finances, employees, and improving technology. It also created a need for innovation to develop new products for saturated markets. Managers had to resolve issues like cost-cutting, demand forecasting, and finding new markets to help companies sustain in the increasingly competitive business environment caused by the economic slowdown.

Uploaded by

eydip007
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

EMERGING ISSUES

IN
MANAGEMENT...
• “MANAGEMENT” as the word suggests
means to manage. It is nothing but the
art of getting work done from others by
optimum utilisation of time and
resources. We all are managers, since
everyday in our lives we have to manage
something or the other.
• Example: When we forget to do some
assignment given to us and the next day we
get the shock that it is to be submitted that
very day, we somehow manage to copy it
during some other lecture, without the
teacher noticing it. This is how we manage
time. In these ways we often do many things
thus managing time and limited resources.
Now we come to the issues or rather the
emerging issues in the field of management.
Ever since “recession” hit the world economy,
the overall scenario has drastically changed.
There was an economic slowdown and the
demand of products had reduced. The market
now became saturated and hence it gave start
to a new era – “survival of the fittest”
Now there was a need to reduce the cost,
reduce the number of employs, innovate new
technologies which would reduce the cost of
manufacturing and help the company attain
the scale of economy.
In layman's language “ you don't need the
product, we wont manufacture it.” Hence it
gave rise to many issues and complications
which the managers had to resolve in order
to sustain in the cut throat competition.
Now we will discuss the major issues in detail.

1. COST CUTTING: Organisations had to adopt


cost cutting strategies in order to reduce
their expenditure. They had to find out ways
to reduce their cost. Cost cutting can be
segregated into 3 broad catagories:
a. Finance: Often people ask questions
“whether to cut marketing cost, overheads or
staff?” Well the correct answer is to cut a bit
of all three. Well the mantra is- cost savings
should never come at the expense of the
ability to execute a long-term vision.
b. Human Resource: One of the most
important assets to an organisation is the
employees working in it. They in the true
sense are the
strength of the organisation.
The problem occurs when the employees are
laid-off, the remaining employees also fear the
same. Hence to overcome this feeling all
employees must be congratulated and
motivated that they are still there because of
their good work and the organisation under
no circumstances shall loose them.
This will increase their moral and help the
organisation in getting better work done.
c. Technology: Technology is one such thing
which has to be frequently upgraded. No
matter how much it costs, an organisation
can never compromise with he necessary
equipments, because such a thing is directly
related to the quality of service and no
organisation would like to let go of the
reputation it has.
d. Marketing: The best place to cut cost is
marketing, is absolutely FALSE.
If a business is going slow then its the time for
the company to increase their marketing by
educating the customers about the
augmented services which they will be getting
if they switch to our particular brand.
2. THE NEED FOR INNOVATION: If at a point the
market becomes saturated and the products
are no longer demanded then arises the need
for a DO or DIE situation. Either innovate
something new or quit the market.
Innovation is required at all stages of
management i.e. Marketing , R&D etc.
Lets start with R&D:
If for ex. We are manufacturing washing
machines (which can come in the category of
luxury items) and in the period of recession
the demand of it has gone down, people don’t
want to buy our product. Then the need arises
of coming up with such a model that is cost
efficient and effective (ECO Friendly).
Since such a need exists the company can rely
on the idea.
Now only manufacturing the product will not
do even half the job. It needs aggressive
marketing and good communication with the
outside world. Here is where marketing comes
into play. The customers need to be told about
this special attribute of the product so that it
arises a need in the customers mind - that if
we use it instead of our old model it will
save electricity. A NEED NEVER EXISTS IN THE
CUSTOMERS MINDS – IT HAS TO BE
GENERATED.

Further on there is a need for new technology


with better manufacturing capacity so that
economy of scale can be attained. If the
product is costing less, it will be priced less
also. Better technology will also give better
quality and thus a competitive advantage over
other players.
One of the most important places of cutting
down the cost is to reduce the distribution
channels. The lesser the channel, the cheaper
the product, more will be the chances of the
people accepting the product.
Another important issue in management
today is demand forecasting. Earlier it was
much easier to calculate based on the market
trend. But today since recession has hit the
market its next to impossible to calculate the
apt demand , specially based on
the market trend. For ex. Its the market trend
that the auto industry slows down in the
months of may, June and July so the company
also manufactures the product in a much
lesser quantity or stores it for future purpose.
Determining on the basis of such happenings
the demand used to be calculated.
Another issues is the need for unsaturated
market. Companies are constantly searching
for untouched markets.
We have seen in the past year that auto
industry , in fact all industries are moving
towards the rural market to capture the
masses over there. Since that is the only
sector which is away from the economic
slowdown and has a very good purchasing
power. They just need to be educated well.
When we talk about cost cutting and
employee lay-offs then it is a must to flatten
the structure of the organisation. Reduce the
scalar chain in an organisation so that there is
no need for a systematic approach and lesser
number of employees can handle the work
properly.
With this we now come to an end of our topic
concluding that the times change and it gives
rise to a tougher more competitive
environment with major issues to be solved
on a daily basis.

THANK YOU...

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