Economic Slowdown and Stagnation
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- 09 Sep 2015
- Research & Ideas
Leadership Lessons of the Great Recession: Options for Economic Downturns
In the new case study “Honeywell and the Great Recession,” Sandra Sucher and Susan Winterberg explore employer tradeoffs when a downturn hits: conducting layoffs vs. orchestrating furloughs. Plus: Video interviews with Honeywell CEO Dave Cote. Open for comment; Comment(s) posted.
- 03 Aug 2009
- Research & Ideas
Corporate Social Responsibility in a Downturn
Financial turmoil is not a reason to scale back on CSR programs—quite the opposite, says HBS professor V. Kasturi "Kash" Rangan. As a marketing scholar Rangan is optimistic about strategic CSR efforts that provide value in communities and society. Q&A Key concepts include: Corporate social responsibility (CSR) means "activities undertaken by businesses that enhance their value in the community and society and thus benefit their reputation and brand," says Rangan. CSR should be treated as a business discipline and practiced with the same professionalism and rigor as other aspects of a firm's strategy. "For example, many of the programs that come under the umbrella of 'climate change' have the potential to benefit the environment as well as a company's bottom line," Rangan adds. Good examples are the early childhood literacy initiative of PNC, a financial services organization based in Pittsburgh, and the 10,000 Women initiative of Goldman Sachs, which facilitates a business education for underserved women. Companies should classify their CSR programs according to the ability to enhance and even transform the firm's business practices. Closed for comment; 0 Comment(s) posted.
- 27 Apr 2009
- Research & Ideas
Building Businesses in Turbulent Times
An economic crisis is a charter for business leaders to rewrite and rethink how they do business, says Harvard Business School professor Lynda M. Applegate. The key: Don't think retrenchment; think growth. Key concepts include: Companies that survive the financial crisis by identifying and exploiting innovation will serve as economic growth engines in the future—and will be the industry leaders of tomorrow. This is a time of unprecedented opportunity to rethink offerings, markets, business processes, and organizational structure—and to improve them to achieve growth. Success will depend on leaders who are able to stabilize the company as they identify and exploit opportunities, find new market niches, create innovative new offerings, and restructure and reposition. Closed for comment; 0 Comment(s) posted.
- 18 Mar 2009
- Research & Ideas
Marketing After the Recession
This downturn has likely changed people's buying habits in fundamental ways. Professor John Quelch discusses why marketers must start planning today to reach consumers after the recession. Key concepts include: Marketers must think through how the recession has changed consumer preferences and what they think of your brand. Start preparing today by, among other steps, focusing on high-potential customers, assessing your brands, and developing scenarios. Closed for comment; 0 Comment(s) posted.
- 23 Feb 2009
- Research & Ideas
Creative Entrepreneurship in a Downturn
Entrepreneurs, take heart. True, the global economic malaise removes opportunities and precious resources—but also adds them in new and interesting ways, argues HBS senior lecturer Bhaskar Chakravorti. In this Q&A he identifies reasons for optimism, and shows how entrepreneurs can think differently about bad news. Key concepts include: There are three fundamental decisions facing any business in good times and bad: where to play, how to deliver, and how to win. Entrepreneurs should systematically identify "downturn needs," including necessities and affordable luxuries, substitutions for previous products and services, and products that deliver value for money. To serve these needs, look for downtime resources that might be available at relatively low cost. Think business model, says Chakravorti. Consider the unintended consequences of cost cutting, and instead focus holistically on the interconnected parts of your entire business model. Closed for comment; 0 Comment(s) posted.
- 03 Mar 2008
- Research & Ideas
Marketing Your Way Through a Recession
In a recession, consumers become value oriented, distributors are concerned about cash, and employees worry about their jobs. But a downturn is no time to stop spending on marketing. The key, says professor John Quelch, is to understand how the needs of your customers and partners change, and adapt your strategies to the new reality. Key concepts include: Brands that increase advertising during a downturn can improve market share and return on investment. Early-buy allowances, extended financing, and generous return policies motivate distributors to stock your full product line. In tough times, price cuts attract more consumer support than promotions. CEOs must spend more time with customers and employees. Closed for comment; 0 Comment(s) posted.
Can the US Economy Regain the Growth and Prosperity of the Past?
SUMMING UP: To recapture the powerful economic growth rates of the past, the United States must reinvigorate its middle class. James Heskett's readers debate how this can be done. Open for comment; Comment(s) posted.