Yearly Archives: 2008

Recession Survival: Industry Contagion, Structural Change and Business Strategy

Structural Change My last two entries introduced the challenge of structural change. I have drawn attention to the fact that recessions don’t just mean a period of economic contraction, they also bring the prospect of economic restructuring. And economic restructuring has fundamental implications for business strategy. I used financial services […]

Recession and Strategy: The first unfortunate signs of structural change.

The news on Monday 17th November that Citigroup was to shed 52,000 jobs, in addition to the 23,000 announced earlier this year is an upsetting indicator that the type of structural change described in my previous posting Recession and Strategy:  The old questions don’t work anymore is upon us.  Reports […]

Recession and Strategy: The old questions don’t work anymore 1

Overview We are all deep into the annual planning process. But this time the challenges are different and therefore the questions that we should address must change. An era of uninterrupted economic growth has come to an abrupt halt. The hopes emanating from last year’s planning cycle, that the world […]

Recession – A business survival guide (Part 5: The economy – realism please)

Reviewing many business plans and corporate statements over the last eight weeks or so brings me to one conclusion.  Business leaders may be adopting a far too optimistic view of the direction of the global economy when setting out their business plans for 2009 and beyond. The general consensus is […]

Recession – A business survival guide (Part 4: Human Resource Acquisition)

Recession is a time to think innovation and expanding market coverage – a quick synopsis of the general theme in this briefing series. Research conducted into companies that have grown, rather than contracted, during periods of economic stagnation shows us that these companies are good at, amongst other things, spotting […]

Recession – A business survival guide (Part 3 – Portfolio Balance)

In past entries I have argued the point that recession is a time to crank up innovation – not to cut investment in it. In my last blog entry I referred to the “Aldi Effect” – in a recession customers will change their buying habits and preferences. The real danger […]

Recession – A business survival guide (Part 2 – The “Aldi Effect”)

In earlier blogs I have argued that in a recession one must not “shoot the usual suspects”. By “shooting the usual suspects” I mean across the board cost cutting in areas such as sales, marketing and new product development. My point is that during a recession a firm that wishes […]