Question
- Elaborate on the problem of ‘Stunted’ growth in light of the discussion on structural transformation of the Indian Economy.
- critically reflect on their experience as a strategic management consultant/practitioner, including the teamwork and communication skills they have developed from the strategic planning exercise. Students will identify their weaknesses, challenges faced in reaching out to the organization, and how they can improve in the future for their personal and professional development.
Answer
Question 1
The economy in India has been significantly accelerating since the 1980s, but farming has not. There is a continuous increase in rural communities and the labor force and gradual movement from rural-to-rural districts. Despite the increasing productivity gap between non-farm and agriculture, small-scale rural and urban mobility and sluggish farming, urban-rural consumerism, incomes, and differential inequality have not increased. The rapidly growing rural non-farm economy, which currently produces the highest employment in India, has become a significant driver of the urban-rural spill. Rural non-farm autonomy is particularly dynamic, with farm households diverging into the sector to boost income (Binswanger-Mkhize, 2013). Farm size is continuing to fall as labor is being depleted in rural regions, and agriculture will continue its feminization trends, while part-time agriculture is becoming the main farm structure.
Indian economic growth has had respectable economic development throughout the previous two or three decades. However, the unfortunate aspect is that the Indian economy has changed extremely slowly. There is a broad difference between farmers and non-agricultural labor productivity. Labor integration capability has been poor, and formal employment opportunities have been decreasing in the economic system, and labor contracts have become progressively informal. This fact fuels the scenario with a fast population increase in rural areas. In rhythm with increasing incomes, agriculture is not growing, and agricultural labor in rural areas is not absorbed (Binswanger-Mkhize, 2013). Therefore, the predicament is a symptom of fast economic expansion, with the slowing structural change has brought urban unemployment to rural non-agricultural workers. It might be that manufacturing companies have a more significant impact than services enterprises due to labor legislation, the absence of finance available, and poor infrastructure.
Since production depends more on intermediary inputs, pro-labor legislation integrated with input restrictions control has significantly lowered productivity development in the manufacturing industry than in the services industry (Nguyen, 2017). These regulations and the lack of available finance led to improper combinations of factors in industrial enterprises but have considerably fewer effects on service companies. However, it was also suggested that the dramatic expansion of the services sector might be linked to the demand for input from the rising industrial sector, but not as rapidly. Therefore, whereas studies in India ascribe sluggish production to tight labor legislation and inputs, others suggest that strong development in services stems from increased manufacturing demand (Herrendof et al., 2014). However, despite the existing substantial and growing productivity gap between industrial production, we still lack an explanation why the labor market continues to move in the manufacturing industry.
The double economic framework is fundamental since its growth experience has been an emerging market over the last twenty years. In such economies, labor transfer from the traditional to the contemporary economic components is essential for structural change. When economies are wealthier and have their primary dualistic nature, intersectoral transfers of labor continue but are exclusively connected to product development, without the implications of dualism being overcome. It is, however, more appropriate for the analysis of industrialized countries, which overcame or is less significant the above-mentioned structural duality (Nguyen,2017). The economic side of the Transformational Modification in these more developed economies solely involve labor transfer and relocation in otherwise homogeneous sectors, which are essentially productivity differences.
Question 2- Strategic Planning on Structural Transformation
Strategy consultants evaluate primary corporate processes and objectives and propose improvements or guidance for companies. They determine cost reduction methods, income growth, and critical decision-making. They assist a business in identifying markets and trends in a specific market. Current challenges are solved and solutions implemented by strategy consultants. Strategy consultants also evaluate rivals of a company to assist set goals and objectives. Whether an independent consultant or works for a consulting firm, every business or organization can profit from the services of a policy consultant (Kim & Lee, 2012). The labor force participation rate for strategic management consultants, including strategy advisers, is 16 percent until 2024, as per the Bureau of Labor Statistics. It should continue and play a crucial part in this forecasted growth rate to decrease costs and increase efficiency.
The strategic management consulting industry of professional services is dynamic, evolving fast. For customer consultants to be influential and important, they must keep up with the economic and social tendencies, anticipate changes that might impact their customers' businesses, and provide advice to help customers achieve and sustain outstanding quality in a highly complicated, competent, and complex environment (Kim & Lee, 2012). The experience and understanding economy creates rising demand and provides consultants with new opportunities.
Weaknesses and Challenges
One of the main critiques of strategic management consulting is the need for the company to foresee the future to plan, and we are all aware that it is not a simple task to forecast the future. The notion is that the approach adopted may be invalidated if the end does not develop as expected. Recent studies in the business sector have revealed that planning organizations, whether they fulfill an intended purpose, increase performance than those that do not design.
Several strategy formulation techniques do not depend as much on future forecasting. How to improve strategic management consulting professional development The broad and overarching objective of any management and corporate advice is to assist customers in accomplishing their business, social or other goals. The objectives can be described in several ways; industry leadership, competitive advantage, customer experience, complete quality or productivity achievement, corporation performance, efficiency, sustainability, better company performance, efficiency, and growth. Different concepts and phrases mirror clients’ and consultants’ thoughts and goals, management group and consultation conditions, and even mode.
In commercial companies, governmental agencies, and social groups, several aims will be highlighted. The consulting time horizon differs on a case-by-case basis. However, the common factor stays the same: consulting must offer value to the customer organization (Werr, 2012). The value should contribute tangibly and measurably towards the achievement of the client’s key objectives. For all consulting activities, the global aim of management consulting offers reason and guidance. In order to achieve the customer’s objectives, the objective is to establish these objectives by the customer. It is not the case in certain businesses, and management is without context, objective, or feeling of the task (Werr, 2012). The consultant’s primary role may be to support the customer in developing an outlook on the future, setting ambitious but realistic objectives, creating a strategy, focusing on results, and starting to look at current problems and opportunities with long-term and organizational strategic goals in mind.
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