How Banks Pulled Through the 2001 Recession
Financial institutions came through the 2001 recession in a much stronger position than they did during the downturn 10 years earlier. This article offers a look into how much of their success stemmed from skill on the part of managers and how much came from simple luck.
Recession Strategy: Reduce Working Capital Without Punishing Customers
A recession can bring out the best and the worst in corporate finance. The worst has been splattered across newspaper front pages. Some of the best is happening in back offices, where companies continue to find ways to mine working capital to increase cash flow. Take a look at this article to learn how companies like Palm and Plexus handle their financials and their customers during a slow economy.
Using Corporate Risk to Determine a Recession’s Severity
Economists have long recognized that the private sector’s financial conditions have a powerful effect on the macroeconomy. Now with the rapid accumulation of corporate debt, a sudden economic shock would, in fact, not be very shocking. This paper shows how the IMF constructs its measure of corporate vulnerability and, in turn, its predictions for how low a downturn will go.
When Good Management Shines
According to conventional wisdom, a recession is when exceptional companies prove their value. Accenture Institute studied 850 of the largest companies in the United States and how they fared during the 1990–1991 recession. Here’s how the most successful came out on top by pursuing a new brand of back-to-basics contrarianism.
Recession Spending: Why Ad Cutbacks Don’t Always Make Sense
Should you change your marketing strategy during uncertain times? All too often management looks at advertising solely as an expense, rather than a long-term investment. This article explains why companies that continue to pursue an aggressive marketing strategy during a recession actually recover faster than the competitors who decide to slash budgets.
