Thursday, February 6, 2020, my day started with the following headlines;
Coronavirus concerns: India Inc in a cold sweat as lockdown in China continues
Industry officials say trade has already been affected and unless Chinese supplies bounce back quickly, it would lead to scarcity and higher prices in a few weeks.
The coronavirus outbreak is giving industry the jitters, especially sectors heavily dependent on Chinese imports such as consumer electronics, automobiles and pharmaceuticals. Seafood and spices exports are also vulnerable as Beijing absorbs a big chunk of the $10 billion these shipments bring in every year.
ET Bureau | February 06, 2020, 08:12 IST
Agra footwear industry stares at losses due to coronavirus
Every year, leather shoes worth over Rs 3,000 crore are exported to European countries from Agra. The US and several African countries are also important destinations for Agra footwear, say industry sources.
In Agra, which is the largest footwear hub in India, the industry is adversely impacted as manufacturers imports several components such as laces, shoe lining, buckles, ornaments, insoles, outsoles, cellulose board, shank board, foam and packing material from China.
Deepak Lavania | TNN | February 05, 2020, 12:29 IST
Coronavirus: Surat diamond industry stares at Rs 8,000 cr loss
Hong Kong is a major business hub for the Surat diamond industry, but schools and colleges have been closed there till the first week of March and even the businesses are seeing a dip in view of the outbreak of the novel coronavirus.
The Surat diamond industry is likely to face a loss of around Rs 8,000 crore in next two months as Hong Kong, which is a major export destination, has declared a state of emergency due to the coronavirus outbreak in China, say experts.
PTI | February 05, 2020, 14:10 IST
The above three isolated incidents are perhaps micro specks on the tip of the Coronavirus iceberg and as time passes by, we are seeing the virus becoming mankind’s worst nightmare, taking a heavy toll on the global economic front. Being highly contemplative by nature, I couldn’t help visualizing the broader global impact of the virus on business and what I envisage is nothing less than an economic holocaust.
As markets opened in China on Monday 3rd February after an extended new year festival, it was anticipated that there will be a sell off, but what happened was pretty severe forcing the government to pump in over 170 billion dollars to prevent a free fall and restore investor confidence.
China is already witnessing its lowest growth in the last three decades and as the impact of the virus gains momentum, a very serious trouble surfaces for China and the world, to name a few that come to immediate notice;
- The demand for oil in China will slump thereby forcing OPEC to cut crude output to pre-empt fall in prices.
- Hyundai and Kia factories in South Korea will be badly hit as it is not certain how long will the part suppliers in China remain closed.
- In the face of uncertainties of reopening of factories, consumer markets all over the globe that depend very heavily on Chinese suppliers will see their supply chain going for a toss and consequently many retailers may cancel their orders lest risk unsold inventories due to delayed supplies.
- The downsizing of exports from China will have severe consequences on the logistics and global freight movement.
Simply put, as it looks, Coronavirus is going to cause a global impact that no one would have ever imagined at its outbreak. With every passing day, comes the news of it spreading to other regions across the globe, thereby causing greater turmoil.
Such challenges that feature high stress and extreme survival pressures will be a tall order for the best of organizations and the highest performing executives. In view of extreme uncertainties, it will not be easy for leaders to develop any strategies that will help them deal with the aftermath of the virus attack.
Looking from an organizational management and leadership perspective, dealing with such extreme situations will entail uncertainty, improvisation and spontaneity replacing predictability, command and control. Leaders will have to apply very radical approaches to planning and managing situations, an approach that is tolerant to such extremeness and is innovative, adaptable and agile.
While leaders plan or strategize corrective action, “reality” will happen on its own and we will have to learn to respond to it for reality cannot be changed as it has a mind of its own. Every plan that has been made will have to be changed to fit the situation as we encounter it right now as situations may change tomorrow and so also the plans.
Sustainability will require of leaders to develop a new way of thinking and acting, one that’s appropriate to situations that thrive under the extreme conditions of high turbulence, high change and high uncertainty, maintaining control and delivering value in the face of volatility. And on their part, organizations will have to look for complex, high-speed, self-correcting processes during which people interact in pursuit of a common desirable objective, under extreme conditions of high uncertainty, high stress and high change.
Leaders will have to adopt a new paradigm which will help them in;
- Reinventing the leadership model in a contemporary context
- Shifting their perceptions of realities and how we relate to it
- Being comfortable leading at the edge of chaos
- Having the foresight in anticipating rapid changes
- Having the courage to steer the organization through volatility and chaos
- Having the competency to see patterns in chaos and take control
- Having the ability to take bold actions and safeguard interests of the organization
- Being prepared to alter strategies
- Having the agility to stay ahead of the volatility curve
- Having the ability to spot opportunities through rapid upturns and downturns
- Having the ability to adapt to ever changing internal and external factors while maintaining the strategic focus and core vision.
LEADERSHIP NOW WILL HAVE TO BE HIGHLY STRATEGIC IN ACTION DWELLING ON A WELL-DEVELOPED MINDSET FOR GAUGING THE IMPACT OF TECHNOLOGICAL, SOCIAL, POLITICAL, MARKET AND ECONOMIC REALITIES OF THE ENVIRONMENT IN WHICH BUSINESSES OPERATE AND WILL HAVE TO FOSTER ADAPABLITY, INNOVATIVES AND AGILTY TO REMAIN RELEVANT AND RESOURCEFUL UNDER CONDITIONS OF HIGH UNCERTAINITY, HIGH CHANGE AND HIGH STRESS.