Today while in the marketing class, Prof. P.K. Yadav gave us a situation to work with wherein he took names of four animals and asked us to come out with companies related to the characteristics of animals. One notable name which he took was that of elephant. Elephant is a mammoth mammal which is herbivorous and nobody preys upon it (except when its a calf, some lions might get lucky).This is an animal which feeds upon the natural vegetation merrily without any damn and consequences and isn't part of the food chain later i.e. doesn't become a food for carnivores. It gulps down a huge amount of vegetation and when it gets mad, it causes destruction too. A herd of elephants in an area can be a headache for the local ecology.
It reminded me of companies like Kingfisher Airlines, Suzlon, DLF, Unitech, Educomp Solutions etc. which kept on feeding on the easily available credit of our economic system without any due consideration given to the state of their Balance-Sheets and the damage they were causing to the economic ecology or at least the banking system of our country. Their managements acted like alpha-males taking on unnecessary huge risks and expansions funded by credit as if they were some piece of cake. These companies are still on the horizon mainly because they can't be allowed to falter and that's why there is frequent injection of money supply to let the banking system function to normal pace, but because of which the common man has to suffer the pain or pinch of inflation. And the shareholders have to face the loss of value.
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