Case Study 1

The issues facing the global economy - which include inflation, climate change, and
the war in Europe - have coalesced into what experts have called a 'polycrisis. ' The
global economy has been under enormous pressure and endured significant
distributions before. Kenya is experiencing the effects of this crisis. The impact of
Covid 19 and the Ukrainian war on the Kenyan economy, coupled with the rapid rise
of automation and digital transformation, has made it more critical than ever for
companies to stay ahead of the curve. Being a good manager in a bad economy is
challenging. Corporate managers cannot stand still in the face of an economic
downturn, but their bias for action and their instinctive responses must be harnessed.
If these natural and legitimate leadership moves are not made in a balanced way,
managers may actually amplify the crisis. Recently, many Kenyan firms have
suffered the brunt of economic crisis- for example, “Kenyan firm Sendy entered into
administration after firing employees, shutting operations. The firm cited financial
challenges due to the harsh economic conditions worsened by high fuel prices and
the weakening shilling. There are many other such cases in the market with the SME
sector taking a huge blow.

Using the case study above;

 Consider the business cycle and use practical examples of the

challenges in your industry and what can be done to resolve them.
 What are the fashions and fads in your industry in response to the
economic situation?