Richie nodded in greeting and sat down at the nearest table.
"So, what are we waiting for?" the tutor tilted his head and looked at the boy over his glasses. "Open the desk drawer, get out your writing utensils, and get ready to take notes."
- Yes, yes, just a second.
Richie didn't know he'd have to write anything, but after his tutor's words, he looked in his desk drawer. There he found a stack of thick notebooks and writing utensils.
The tutor began drawing graphs on the board with chalk and began his lecture in a rather boring voice:
- Last time, we finished with the problems. Let's look at example number twelve. Your company is failing. Sales have fallen by 50 percent due to high prices. Revenue is falling, and shareholders are demanding your immediate resignation. So, the question is: how can you win over the board of directors and avoid bankruptcy?
Richie was dumbfounded by these kinds of problems for an eight-year-old boy. He tried to come up with something, but he was falling into despair. His eyes glazed over.
"Richard, I'm waiting for your answer," said the tutor.
"Uh..." the boy drawled. "I'd probably give a bribe."
"It won't help!" the tutor snapped. "Richard, think again."
"Um... Maybe we should hire detectives to dig up dirt on the directors and blackmail them? And we should also hire hitmen to kill the most recalcitrant directors."
"Richard, firstly, it's unethical, and secondly, it will lead to criminal prosecution. Such methods aren't used in a civilized society. Besides, it won't help with bankruptcy. Let's consider the following options."
"Well..." Richie scratched his head, ruffling his sleek hair. "I think we should start rumors that our company is merging with a larger company, and then sell it quickly when the stock price goes up."
"Richard, that's also unethical and unacceptable," the tutor remarked. "Besides, you can go to jail for such scams, and they don't always work. Next answer."
Richie wasn't a financier before he got there, so this task was incredibly difficult for him. But he was a graduate student, and he had an economics class in his second year. He tried to remember something from that class, but he couldn't. Eventually, his brain came up with something.
"I know!" he said. "We need to restructure, optimize logistics and the company's reporting systems, reduce staff, and find suppliers with lower prices in order to reduce production costs."
Richie breathed a sigh of relief and considered his answer perfect. But the tutor had other ideas.
"On the one hand, Richard, your reasoning is correct. But in a crisis, there's no time for restructuring and optimization. Moreover, during the reform period, which is at least three years, the market could advance so far that the company, having overcome its old problems, will face new ones and ultimately go bankrupt. What other suggestions are there?"
Richie began to recall real companies and how they had emerged from similar situations. He recalled one firm that had emerged from a deep crisis and become incredibly successful. He quickly voiced his thoughts, based on an article he'd read on Holopedia:
- In a situation like this, you need to build a strategy not on solving immediate problems, but on working with an eye to the future.
"Well, well, that's interesting," the tutor perked up, clearly pleased with the answer. "Continue developing this theme."
"We need to create alliances to produce cutting-edge products to ensure we can release cutting-edge and in-demand products in the future. For example, everyone now uses computers with a graphical user interface at most. We need to invest in developing a user-friendly operating system and plug-and-play software, creating a software platform with its own processors, motherboards, and the like. And even though the company will be saddled with huge debt, within a few years it will not only emerge from the crisis but also become very successful."
"Excellent answer, Richard," the tutor gave the boy a warm smile. "I'm glad our lessons weren't in vain and something stuck in your head."
- Um... Teacher, can I ask a question?
- Of course, Richard, that's why I'm here, to answer your questions.
Richie wanted to find out about his financial situation and found the timing opportune. He asked:
- Sir, are you familiar with the state of my family's financial affairs?
"Yes, of course," the tutor replied. "I am, after all, an economics professor, and your family is one of the ten richest in Britain."
- Sir, can you tell me about my family's business?
"Why not?" the professor shrugged. "I can."