Comments on: Resilience

By: cafm

cafm — Sat, 15 Nov 2008 09:35:12 +0000

Basic economic funda na…you keep on producing as long as your marginal revenues per unit of production is more than your magical costs…beyond that you dont. (In a profit maximizing theory which obviously applies here)

Associated with each cost cutting measure there will be some “cost” incurred for that…and the cost advantage will start reducing once the obvious cuts are made….so at some point the marginal benefit of the cost cut will equal the marginal cost of the cost cut where you stop taking further measures.

By: deepak

deepak — Sat, 15 Nov 2008 08:05:45 +0000

@ cafm : is there a point of diminishing returns in the cost cutting proces?

By: cafm

cafm — Sat, 15 Nov 2008 06:34:17 +0000

@ deepak..true da..now mostly the capital inflows (which was funding a lot of our growth)is going to dry up from west…but China(yes! source Economic Survey for 2007-2008), our biggest trade partner, is relatively less exposed to the crisis and our domestic market is also quite strong so though we might take a hit, it might not be as strong as the doomsday’ers are predicting.

In this post I was thinking more in terms of the cost cutting and efficiency measures that the world will have to accept as part of the recovery…and how we are already good at it and also how there is a chance more work will come to us as a measure of cost cutting, now that the “India” model is proved to work

@ praul thx for the compliments! my head just hit the roof!

By: Parul

Parul — Fri, 14 Nov 2008 16:47:08 +0000

A very refreshing blog I must say…!
And this is one of the few good posts I have read on the much written about meltdown. And the most hatke of all!
I’ll have to invest some more time to go through your posts…am looking forward to it…
I’m glad you came across my blog, more so because I discovered yours in the process…

By: deepak

deepak — Fri, 14 Nov 2008 03:47:56 +0000

aliyaa my thoughts for two paise that it is worth….
India always had high return on investment because of the “typical” indian kanchoosness
India always had high “demand market”
But the credit crunch is affecting the “capital market” and hence we still might take a hit — as in where n amount was available now n/10 is available to do what you want to do…. [i am way out in the deep water here]…. sorry aliyaa oru MBA kaarannodu ithu thallaan [shamshi beikku]… anyway nice reads…

By: cafm

cafm — Tue, 11 Nov 2008 20:50:53 +0000

the “where is this going” feeling is now my trademark isnt it?

I just hope that i can establish my patent on the ending twists too!

By: Nikhil

Nikhil — Tue, 11 Nov 2008 16:53:02 +0000

Initial reaction was “where is this going”, but once you got to your theme you made some nice points.