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Activity:
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Question posted: 29 Jul 2010 06:31 AM +0000,
4 answers, 69 views, last activity
16 Aug 2010 03:19 PM +0000
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Every economy has to go under 4 stages of Boom-Recession-Slum-Recovery...Companies have faced a long period of recession and now are digging into slum then the recovery period will start. What according to you are the positive aspects of Recession & how can companies cope up with slums?
Yea, I feel that a long term sustainability of any company,s business model can only be accessed from its survival during recession.In boom period almost any company will be profiting because of sheer business they derive, but in recession its the cost structure which comes in to play. Thus its a good indicator of sustainability.
A company that has a constant focus on all aspects of its business will never go through the business cycle mentioned above. What happens is when a company starts tasting success, it forgets its fundamentals either/or goes in for massive expansion / diversification, loses focus, goes on a reckless spending drive, etc.
That is why if a company can retain focus throughout - questioning its every move or providing for a backlash - then it will not have a recessionary period at all. At most it will have to dig deep into its pockets during such a period but it will never face a problem.
Did you hear of Apple or Samsung or Sony going through a recession ?
You are right Mr.Anupam from one most important aspect of Cost in all Spheres of a business; here I would also like to add that all the departments can be judged in the tough times. The Cost of product and its per unit cost also has a vital role to play during the slums period as the less difference they both have the longer will its sustainability be in the market.
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