Business Sphere

We are in turbulent times.

     We are caught in the midst of global financial meltdown, affecting across countries, companies, businesses, industries and, most of all, people.

     Among countries, the United States, the world’s biggest economy, is in recession, which has affected countries in Europe, Asia, and  the American continents. 

     In the business world, countless corporations and businesses in several countries producing diverse products and services, from cars to cellular phones, from banks to financial services, from appliances to restaurants and department stores, just to name a few, have suffered severe losses while others have already closed shop.  These businesses were once thought to be very stable, strong, and profitable.

     Even giant and admired corporations once considered institutions and leaders in industry were not spared.

     Who would ever think that the venerable General Motors Corporation (GM), which for many decades since the 1930s the world’s largest industrial corporation presently employing 244,000 people with subsidiaries and plants in 34 countries and sells vehicles in some 140 countries, is now heading into bankruptcy?

     Because of the current global recession, millions of people in Asia, Europe and the Americas have suddenly found themselves out of jobs and have joined the ranks of the unemployed. Many are discouraged, dismayed, demoralized.

     What shall we do to survive in these turbulent times, in these times of change and of rapidly changing environments?

     History will tell us that in the 1990s, there was also a recession, and people had survived.  For survival and growth are just a question of how we manage ourselves, our families, our businesses, our priorities and finances.  And how do we do it?

     Peter F. Drucker, the guru of management and considered the most influential management thinker ever, had an apt advice in his book titled “Managing In Turbulent Times” for the people in the 1990s and which is still very relevant to us today.

     In turbulent times, says Drucker, the first task of management, which is also our first task, is to make sure of our capacity for survival, to make sure of our structural strength and soundness, of our capacity to survive a blow, to adapt to sudden change and to avail for us of new opportunities in the midst of these changes.

     This means knowing our internal strengths and weaknesses, and of using our strengths to minimize our weaknesses. This means building up on our competitive advantage and resources to cope with the threats in our external environment, while at the same time taking advantage of the opportunities. 

     So, it is up to us as managers, business owners and entrepreneurs to ensure that we use the tools of management – planning, organizing, leading and controlling, to survive in these challenging times. This way, when recovery comes, we are still around to make our business grow and become profitable. And survive we will.