...for tightening belts alone won’t work! Some of the world’s leading companies face testing times in 2009
Swearing by the miseries of world leaders, there should not be even an iota of doubt about how worrisome the future is. It may be too long before the world economy stabilises and given the plight they are in, it is a typical Catch-22 situation. So what is the way out? For starters, they must chalk out plans really fast and not wait for economic conditions to stabilise. Joongi Kim, Associate Dean, Office of International Affairs, South Korea states, “Multinationals have a lot of hidden potential. Once the perceived opacity of the company is lifted, much more upside potential exists.”
So while Sony should focus on creating demand for its products in the home market; it should also try harmonising the business interests of its various units. Rob Enderle of Enderle Group states, “Sony (also) needs massive restructuring.” Arcelor Mittal has a prudent approach as Independent International Investment Research Plc states, “We expect the company’s leading market position, product diversification, internal raw material sourcing and ongoing restructuring activities to aid improvement in top and bottom-lines from FY2010.” Vikram Pandit’s decision to split the giant into two business units – Citicorp and Citi Holdings may bring some relief as it would help manage manpower & operational costs. Even Intel needn’t worry too much, so long as it is able to maintain and strengthen its market leadership. However, 2009 may not be the year of reckoning for Toyota as Markus Leitner, Director, Fitch Ratings explains, “Weak global auto markets will continue to have a negative impact leading to reduced profitability & materially higher financial leverage ratios.” It will have to focus on emerging markets. And the way Time Warner is struggling, it may have to knock hard on the doors of the new President Barack Obama for a bailout! And why not? Desperate times do call for equally desperate measures.
So while Sony should focus on creating demand for its products in the home market; it should also try harmonising the business interests of its various units. Rob Enderle of Enderle Group states, “Sony (also) needs massive restructuring.” Arcelor Mittal has a prudent approach as Independent International Investment Research Plc states, “We expect the company’s leading market position, product diversification, internal raw material sourcing and ongoing restructuring activities to aid improvement in top and bottom-lines from FY2010.” Vikram Pandit’s decision to split the giant into two business units – Citicorp and Citi Holdings may bring some relief as it would help manage manpower & operational costs. Even Intel needn’t worry too much, so long as it is able to maintain and strengthen its market leadership. However, 2009 may not be the year of reckoning for Toyota as Markus Leitner, Director, Fitch Ratings explains, “Weak global auto markets will continue to have a negative impact leading to reduced profitability & materially higher financial leverage ratios.” It will have to focus on emerging markets. And the way Time Warner is struggling, it may have to knock hard on the doors of the new President Barack Obama for a bailout! And why not? Desperate times do call for equally desperate measures.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human FaceProf. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
