What is Recession
This Story is about a man who once upon a time was selling Hotdogs by the roadside.
He was illiterate, so he never read newspapers.
He was hard of hearing, so he never listened to the radio.
His eyes were weak, so he never watched television.
But enthusiastically, he sold lots of hotdogs.
He was smart enough to offer some attractive schemes to increase his sales.
His sales and profit went up.
He ordered more a more raw material and buns and use to sale more.
He recruited few more supporting staff to serve more customers.
He started offering home deliveries. Eventually he got himself a bigger and better stove.
As his business was growing, the son, who had recently graduated from College, joined his father.
Then something strange happened.
The son asked, "Dad, aren't you aware of the great recession that is coming our way?"
The father replied, "No, but tell me about it." The son said, "The international situation is terrible.
The domestic situation is even worse. We should be prepared for the coming bad times."
The man thought that since his son had been to college, read the papers, listened to the radio and watched TV.
He ought to know and his advice should not be taken lightly.
So the next day onwards, the father cut down the his raw material order and buns, took down the colourful signboard,
removed all the special schemes he was offering to the customers and was no longer as enthusiastic.
He reduced his staff strength by giving layoffs.
Very soon, fewer and fewer people bothered to stop at his hotdog stand.
And his sales started coming down rapidly, same is the profit.
The father said to his son, "Son, you were right".
"We are in the middle of a recession and crisis. I am glad you warned me ahead of time."
Moral of The Story: It's all in your MIND! And we actually FUEL this recession much more than we think we do!!!!!!!!!!!!
What can we take away from this story??
1. How many times we confuse intelligence with good judgment?
2. Choose your advisors carefully but use your own judgment
3. A person or an organization will survive forever, if they have the 5 Cs
* Character
* Commitment
* Conviction
* Courtesy
* Courage
The tragedy today is that there are many walking encyclopaedias that are living failures. The More practical and appropriate views on this economic recession is:
"This is the time to reunite together for any small or a big organization,
this is the time to motivate and retain people which are the biggest asset,
this is the time to show more commitments to the customers,
this is the time show values of our company to the world,
and this is the time to stand by our Nation".
UNITED WE STAND AND DIVIDED WE FALL
US power play has already shown its color and impact on the global markets....
Being the biggest economy, it turmoiled and affect so many dependant business, indutries and sectors.
Agree that people Living in Qatar...will not feel the real pain vis a vis to US, UK and other European countries.
LIVING IN QATAR
The financial crisis which starts in the US is just another Politcal power play.
Yes, azilana, everyone needs essentials, in a recession or not.
However, the theory goes that small luxuries (going to a fast-food joint, renting a movie) perform better in a recession than in a boom. It's because their competition (going to a swanky restaurant or taking the family for a day out) become unnecessary extravagances, but people still want a little joy.
Recession or no...Man needs these to survive, right?
marketing strategy will apply in case of luxury, comfort and provisional products.
The reduction in operating cost and profits, might benefit for companies to survive and grab the market share from the existing ones.
In short, consumer is King in these scenario.
Investors sentiments are hurt badly due to huge losses in various sectors, it is a challenge to bring them to invest them in new or future projects.
Does Ad and marketing will help?
The big ad firms and newspapers will try to tell you that the companies who perform best during a recession are the one's who continue to spend on marketing and advertising.
The problem with the argument is that, although ad spend and profits correlate well, it's not possible to know whether the continued marketing contributed to the success.
It might as easily be the case that the companies who failed during the recession would have failed quicker if they'd spent their money on adverts. Or the surviving companies would have had even bigger profits if they hadn't advertised.
Correlation != Causation.
hot dog too
m sending ths to my boss :)
Moving on is simple; it's what you leave behind that makes it so difficult .
Fast food usually does well in a recession. The man was lucky that he picked the right sector. If he'd been selling magazines, his business would have been screwed and he'd then have the dual problems of being illiterate and destitute.
m gona start selling hotdogs... lol