Question

The High Price of Efficiency has proven to offer a particularly prescient warning before the current crisis emerged and the subsequent breakdown in many global supply chains. Using the recommendation for building resilience offered in the article, look at an industry of your choice that is hit hard by the crisis and offer a plan forward, explaining the industry-specific actions required to follow the steps recommended in the article.

High price efficiency

•The single-minded pursuit of efficiency makes businesses less resilient

•Businesses that are consistently more efficient can game the market

•Industries then consolidate around a single dominant business model, leading to a high risk of catastrophic failure

•Resilience demands policy initiatives that limit scale, introduce friction, promote patient capital, create good jobs and teach for resilience

Answer 1

In this pandemic situation the business that are consistently more efficient Can game the market. In The Invisible hand of competition self interested people Can maximize the value of a commodity in every dynamic market in which outcomes are really random now a days we are seen that effect of pandemic covid-19 has affected the market very badly. We has been that people were rushing towards medical stores to buy senitzers, medicines, face mask. Now companies who are preparing beauty products have a great opportunity to push a business towards medical by preparing sanitizer in there industries. The industries who prepare dresses like shirts ,trousers can also prepare face mask, doctors kit Which are used in the safety against covid-19. In this way these Industries easily Run even at this situation.

The single minded pursuit of efficiency makes business less resilent as they only focus in one type of industry , business minded people always thing To adapt their business according to the situation.

If Industries things only a single dominant business model then there is a high risk of failure. For example Indian construction industry Which employs over 49 million people Has been affected very badly due to covid-19. Many of the daily wages workers couldn't find to eat as whole Industries shut down.