Strategy & Leadership

Taking advantage of the pit stop

June 01, 2009

Global

June 01, 2009

Global
Our Editors

The Economist Intelligence Unit

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How to prosper in a recession

Report Summary

Taking advantage of the pit stop: How to prosper in a recession is an Economist Intelligence Unit briefing paper, sponsored by Ineum Consulting. The Economist Intelligence Unit bears sole responsibility for this report. The Economist Intelligence Unit's editorial team wrote the report, and the findings and views expressed do not necessarily reflect the views of the sponsor.  Our thanks are due to all interviewees for their time and insights.

The first thing most companies do in a recession is cut discretionary costs, such as marketing, training, travel, infrastructure maintenance and research and development (R&D). They tighten up on receivables, reduce inventory and look at selling non-core assets. But although focusing on cash and costs is necessary to survive, those companies that prosper take a more proactive approach to managing through recessions, seeing the slowdown as a “pit-stop”—a chance to rethink the future of the business and ensure that the company is geared up to achieve it.

 

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