There is one cardinal mistake that has been identified to be frequently committed by companies that are facing the oncoming economic recession. Some would argue we are already within one, thanks to the total impacts of COVID- 19 and more. As per business intelligence shared by the University of Chicago’s Becker Friedman Institute, more than two- fifths of all jobs lost during the present crisis, will be permanent ones. This rubbishes the other theory that states that the present economic woes are mere supply- side effects, and will ease once the markets open up. The one mistake referred to earlier is of companies trying to ace the corporate strategy of cost leadership. This has been revealed through data sifted through of thousands of companies. The lure of trying to ace cost leadership remained strong even in the previous crisis in 2008. Companies though needn’t try to change their strategy too much all at once. Instead one needs to focus on existing strengths.

Source:https://hbr.org/2020/07/avoid-making-this-strategic-mistake-in-a-recession?utm_medium=email&utm_source=newsletter_monthly&utm_campaign=strategy_activesubs&utm_content=signinnudge&deliveryName=DM91994

Uploaded Date:25 August 2020