Chip shortage could last into 2023

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New Delhi, Sep 10 | The chip shortage that is disrupting global car production could continue into 2022 and even 2023, a leading German car industry figure has said, the BBC reported.

Covid had been a stress test for the industry, which needed a thorough review of its supply chains, Daimler chairman Ola Kallenius said.

Supplies of semiconductor chips have been failing to meet demand in a wide range of industries.

These include carmaking, which staged a quick recovery from the pandemic.

The shortages had caused shutdowns in Malaysia and would “significantly impact production and sales in the third quarter”, Kallenius, who is also head of Mercedes-Benz, told the BBC at the International Mobility show in Munich.

“Chip producers say this will bleed into 2022 from a structural point of view and then gradually get better,” he added.

This meant the shortages could last into 2023, but “hopefully not at the level of severity that we have experienced here in the last couple of months”, he said

Kallenius said Covid had been a “stress test” and a “traffic jam” for the car industry. It would take a while before everything was moving again, he added.

“But we will learn from this stress test and look even deeper into all the tiers of the supply chain to make the system more robust,” he said.

Koray Kose, an analyst at Gartner, says that among the pressures facing the chip industry prior to the pandemic were the rise of 5G, which increased demand, and the decision by the US to prevent the sale of semiconductors and other technology to Huawei. Chip makers outside the US were quickly flooded with orders from the Chinese firm, the BBC reported.

As the pandemic unfolded, early signs of fluctuating demand led to stockpiling and advance ordering of chips by some tech firms, which left others struggling to acquire the components.

People working from home have needed laptops, tablets and webcams to help them do their jobs, and chip factories did close during lockdowns, the BBC reported.

At times consumers have struggled to buy the devices they want, though manufacturers have so far been able to catch up with demand eventually.

Bosses at the tech giants appear sharply aware of this. The chief executives of Intel and IBM have both said recently that the chip shortage could last two years.

Source: IANS

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Does MBA really help in getting a better job offer ?

Does MBA really help in getting a better job offer ?

Most students pursuing an MBA come with the sole objective of having a decent job offer or a promotion in the existing job soon after completion of the MBA. And most of them take loans to pursue this career dream. According to a recent survey by education portal Campusutra.com  74% MBA 2022-24 aspirants said they would opt for education loans.

There are exceptional cases like those seeking master’s degree or may have a family business to take care of or an entrepreneurial venture in mind. But the exception cases are barely 1%. For the rest 99%, a management degree is a ticket to a dream job through campus placements or leap towards career enhancements. Stakes are high as many of them quit their jobs which essentially means loss of 2 years of income, apprehension and uncertainty of the job market. On top of that, the pressure to pay back the education loans. Hence the returns have to be high. There is more than just the management degree. Colleges need to ensure that they offer quality management education which enables them to be prepared for not just the demands of recruiters and for a decent job but also to sustain and achieve, all along their career path.

  • So, what exactly are the B Schools doing to prepare their students for the job market and make them industry ready ?
  •  Are B schools ready to deliver and prepare the future business leaders to cope up with the disrupted market ?  

These are the two key questions every MBA aspirant needs to ask, check and validate before filling the MBA application forms of management institutes. And worth mentioning that these application forms do not come cheap. An MBA aspirant who may have shortlisted 5 B Schools to apply for, may end up spending Rs 10,000.00 to Rs 15,000.00 just buying MBA / PGDM application forms.

While internship and placements data of some management institutes clearly indicates that recruiters today have specific demands. The skill sets looked for are job centric and industry oriented. MBA schools which have adopted new models of delivery and technology, redesigned their courses, built an effective evaluation process and prepared the students to cope with the dynamic business scenario, have done great with campus placements despite the economic slow down.

However, the skill set being looked for by a consulting company like Deloitte or KPMG may be quite different from FMCG or a manufacturing sector. Institutes need to acknowledge this fact and act accordingly.

  • Management institutes should ensure that students are intellectually engaged, self motivated and adapt to changes fast. In one word ‘VUCA ready’.
  • B Schools should encourage students to participate in national and international competitive events, simulations of business scenarios.
  • Institutes should have the right mix of faculty members with industry exposure and pure academics.

The placement records of 2021 across top management institutes indicated the fact that recruitment is happening, skilled talent is in demand and certain management institutions continued to attract recruiters even in the middle of an ongoing crisis.

It is time, all management institutes rise to the occasion, understand market realities and identify areas of improvement at both ends – students and faculty.

After all, the stakes are high at both ends. B Schools taking corrective measures will stay while those which are lagging will end up shutting down.

Author Name : Nirmalya Pal

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