Save or Invest? How Companies Should Navigate Recessions.

 

The financial crisis and economic meltdown of 2007-2009 were disruptive for firms across industries, markets, and geographies.  It resulted in the collapse of the financial sector, radical changes in the regulatory and policy environment, and a severe contraction of the world economy. In fact, an economic meltdown of this magnitude fundamentally affects all aspects of firms’ business environment, unsettles their relationships with customers, employees, suppliers, and local communities, and generates a major shift in the competitive landscape. Consequently, companies are likely to fundamentally rethink and reshape their strategic investments to ensure survival and sustain (or even enhance) their competitiveness during and after the crisis.

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