FOOD FOR THOUGHT Source: The Economist
www.economist.com <ul><li>Some companies are finding opportunities in the recession. </li></ul>
www.economist.com <ul><li>Recessions provide as many opportunities for business people as they do for politicians. Althoug...
www.economist.com <ul><li>The most striking example of this was the Depression. Most people think of the 1930s as an econo...
www.economist.com <ul><li>More recent recessions have produced a similar pattern of creative destruction. Two studies by m...
www.economist.com <ul><li>What about the current recession? A great deal is still up in the air, of course. But it is poss...
www.economist.com <ul><li>A BCG study of mergers and acquisitions in America in 1985-2001 found that deals done during a r...
www.economist.com <ul><li>A second group of winners is made up of companies with a record of innovation. </li></ul>
www.economist.com <ul><li>A third group consists of companies which are using the recession to reposition themselves. </li...
www.economist.com <ul><li>There is also every reason to believe that the current recession will produce lots of upstarts. ...
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Food For Thought

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Food For Thought

  1. 1. FOOD FOR THOUGHT Source: The Economist
  2. 2. www.economist.com <ul><li>Some companies are finding opportunities in the recession. </li></ul>
  3. 3. www.economist.com <ul><li>Recessions provide as many opportunities for business people as they do for politicians. Although they are often called “slowdowns”, recessions shake things up rather than slowing them down. They reward strengths and expose weaknesses, create new opportunities and kill old habits, release energy and destroy old business models. Distressed assets can be bought for a song, talented people hired cheaply and new ideas given an airing. </li></ul>
  4. 4. www.economist.com <ul><li>The most striking example of this was the Depression. Most people think of the 1930s as an economic desert littered with foreclosure signs and unemployment queues. But for the canny few it was a huge opportunity. </li></ul>
  5. 5. www.economist.com <ul><li>More recent recessions have produced a similar pattern of creative destruction. Two studies by management consultants show that they dramatically rearranged the pecking order of companies in many fields. </li></ul>
  6. 6. www.economist.com <ul><li>What about the current recession? A great deal is still up in the air, of course. But it is possible to get some idea of the sorts of companies that are doing well and the kinds of strategies they are pursuing. </li></ul>
  7. 7. www.economist.com <ul><li>A BCG study of mergers and acquisitions in America in 1985-2001 found that deals done during a recession generated about 15% more return to shareholders than those that took place during a boom. </li></ul>
  8. 8. www.economist.com <ul><li>A second group of winners is made up of companies with a record of innovation. </li></ul>
  9. 9. www.economist.com <ul><li>A third group consists of companies which are using the recession to reposition themselves. </li></ul>
  10. 10. www.economist.com <ul><li>There is also every reason to believe that the current recession will produce lots of upstarts. </li></ul>

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