The global economy is on a downward path, and what begun as a financial debt almost five years ago, has turned into political crises for many parts of the world. This was stated by Yaseen Anwar, Governor State Bank of Pakistan as a chief guest during the 12th Convention of Management Association of Pakistan (MAP) here on Wednesday. The theme of the convention was 'Leadership Challenges for Business Success'.
Rajiv Vastupal- President, All India Management Association (AIMA); Frederic Sicre- Partner, Abraaj Capital (UAE); D. Shivakumar- Senior Vice President, AIMA & Nokia India, Middle East & Africa; Syed Ali Raza- Chairman, National Bank of Pakistan; Dr Adil Najam- VC, LUMS; Dr Sohail H. Naqvi- Executive Director, HEC; Khalid Awan- Chairman, TCS; Kamran Y. Mirza- Chief Executive, Pakistan Business Council; Jameel Yousuf- Chairman, TPL Holdings; Usman A. Ghani-Professor, University of Texas and other prominent personalities also spoke on the occasion.
In his keynote address, Governor SBP, Yaseen Anwar, talked about the role MAP has played in developing better, smarter and more responsible managers in turbulent times. He emphasised that business leaders must deal with the complexities arising in the ecosystem of any business, both internal and external. He observed that the subprime business of the derivatives, bubbles of assets have created much of the problems that we are facing. "I see the recession lasting the next several years", he said.
"We have some bright spots with the Emerging Markets. Australia and Canada have been considerably less affected by the global financial crisis because of their regulatory regime and leadership" highlighted Anwar. He explained that the management makes business decisions to achieve targets; the Board is in a position to make long term sustainability and more sound risk Management, while the CEO must shape up policies that reflect the direction set by the board. State Bank of Pakistan's practices an integrated risk management approach. The present turmoil presents us an opportunity to look back and assess what went wrong and how to make the roadmap to the future, a better one. Quoting the example of Wall Street in 2008 he explained that Derivatives on the Wall Street totalled 190$ trillion whereas today it stands at a whooping total of 260$ trillion.
Explaining the role of a chief executive Yaseen Anwar said, "Political or financial crisis can no longer be contained into his geographical boundaries of one country. Leaders must be more aware of challenges facing the country: inflation, unemployment and power crisis."
"Today's corporate leaders must focus on innovation to counter the global economic challenges", said Rajiv Vastupal- President, All India management Association. He elaborated the successful example of IPAD by Apple Inc, which was launched in recessionary period.
Shivkumar, VP of Nokia India, Middle East and Africa spoke about "winning in emerging markets". He said that growth in developed economies has slowed down, while 80 percent of future growth will take place in the emerging markets. The Emerging market consumer is value sensitive not price sensitive. They are young, brand aspirer, and technology savvy whilst most live under $2 a day. Businesses have to work their business models to accommodate that segment of consumers who believe in the doctrine of "pay more, get more" and "pay less, get less".
He listed aspiration, quality, and price as drivers for consumers. "Never cut the features and offer your product at half the price. Consumers don't want an incomplete product", he advised. A panel discussion, which comprised of Syed Ali Raza- Chairman, NBP; D. Shivakumar- VP, Nokia India, Middle East, and Africa; Nasir Afghan- Director, IBA MBA Programme and Haroon Waheed- Management Consultant elucidated that the current market scenario inclines today's leaders to consider the people factor as the foundation to business success.-PR