Wednesday, January 28, 2009

Mapping decline and recovery across sectors


Different sectors enter and emerge from downturns at different times. A look at past recessions suggests how some industries may fare.
Bin Jiang, Timothy M. Koller, and Zane D. Williams
In an ideal world, every company would enter a recession led by a team of grizzled executives who could draw on their experiences of past downturns to guide it through the current one. Many companies don’t, however, and even for those that do, it can be difficult to rise above the crisis to ponder the lessons of history. Yet in a recession, developing accurate strategic plans is usually a high-stakes effort. False assumptions about the pace, scale, and timing of growth may slow progress in good times but could be fatal now.

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