Volume: 7, Issue: 1
ABSTRACT
The word 'recession' sends a shocking wave among people, more prominently business fraternity. Recession is an economic phenomenon of decline in macro economic factors of demand for goods and services, production levels, research and development budgets, marketing promotions and so on. • This paper looks into the aspects of impact of recession in manufacturing sector in India and how companies have viewed it from strategic angle. The basic question is whether the recession has really set-in, and if so, what actions industry has contemplated to face it and mitigate the challenges posed. There is no doubt that recession has set in, but, the magnitude of recession impact as felt differs from one sector to another. Normally, companies re-look into their manufacturing operations, product line, operational expenses and other budgets to face the economic decline. Many companies have advocated the strategies of lean manufacturing, cutting down manpower, freezing of salaries and other employee benefits, focusing on products with market potential and higher profit margin etc. to stay in business and remain competitive to face the recessionary trends in the market. A few companies also have considered the option of entering international markets where recession is not much. The paper brings out some of the reactions to recession shared by corporate bosses in terms of how they intend to tackle this economic crisis and what strategies they have in their mind to come out. Finally, the paper presents in brief the findings of a study of 16 manufacturing industries in Hubli Dharwad area of north Kamataka with respect to the approach they have followed to face the recession and the strategic initiatives taken. A conclusion is drawn at the end in terms of how companies have shown an inclination to face the economic decline and march towards the future.
