Strategic Actions to Manage Current Situation
Luca Ottinetti provides an article that reflects on past recessionary crises to help business leaders move through the current situation productively with examples of strategies from TMSC, Ford, AB InBev, Home Depot, and Verizon among others.
Managing through a recessionary crisis requires more than laying low and waiting for the storm to blow over. It takes proactive management to prepare and then take advantage of the general economic weakness.
Recessions come from different starting events, for example (1) stagflation from OPEC’s quadrupling oil prices in 1973-1975, (2) the Fed’s elevated interest rates to combat inflation in 1981-1982, (3) the savings and loan crisis in 1989, (4) the boom and bust of the dot.com businesses in 2001, and (5) the sub-prime mortgages in 2007. Today, a recession is starting to take hold, triggered by the COVID-19 pandemic. Whether V-shaped, U-shaped, or L-shaped remains a subject of speculation. But the real question now is: What needs to be done today
to get through this crisis and come out ahead?
Areas covered include:
- Expanding market share
- Mergers and acquisitions
Read the full article, Managing Through A Recessionary Crisis, on the Great Prairie Group website.