CHALLENGES BEFOE CEOs IN THE MIDST OF SIFF
Innovation, quick decision and
swift action are the three mantras’ that modern Chief Executives adopt to take
up the challenges and come out victorious, here are two glaring examples:
Ford took the quick decision of
appointing Mr. Mullay. He brings a lot
of skills in cutting structural costs, where Ford needs to make progress.
At the same time Mr Ford said the
firm needed to look into tie-ups with other car firms as well as make more
profits from its cars and smaller sports utility vehicles (SUVs). He said he had decided earlier in the year
that he was not the best man to lead the car maker into the future.
"I went to the board earlier
this summer and said `I''ve got too much to do, I''m wearing too many
hats''," he said.
"In this environment, it was
clear to me I needed somebody with a skill set who can take us further."
"When I looked at what we need
now, it was very apparent to me that I wanted somebody, if that person existed,
who had major turnaround experience in an industrial
company and who was willing, ready
and able to take on this challenge."
Mr Mulally, who has headed Boeing''s
commercial aircraft division in its battle with Airbus for the past eight
years, said he had only taken the job on the condition that Mr Ford remained as
Like General Motors, Ford has faced
stiff competition from Japanese car firms in recent years, as consumers have
switched to more efficient cars away from "gas-guzzlers".
"Ford wouldn''t be in this
position [of declining share] if it didn''t have these problems on the product
side, said Erich Merkle, an analyst with Irn.
“hat Ford has to do on the product side is to get back to an understanding of why
people purchase cars and take more risks in terms of design."
Then it comes to India, the changes brought about by
a greater play of gas in energy markets will be dramatic.
Natural gas is set to completely
transform the energy market in India.
From perspectives of demand, supply
as well as prices.
From a demand perspective, India
will be among the world''s fastest growing economies.
India''s GDP is currently at 500
billion US dollars.
It is set to grow to 2 trillion US
dollars by the year 2020.
Over the next 30 to 50 years, India has the
potential to grow the fastest in the world.
In thirty years from now, India is poised to become the third largest
economy in the world after China
This, naturally, will make India one of
the largest energy markets in the world.
India''s current energy consumption
is of the order of 315 million tones of oil equivalent.
India should be targeting an energy
demand of 2,000 million tones of oil equivalent by the year 2020.
The above examples show clearly
about the need for taking up the challenges and fulfilling the same
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