Corporate Strategies during the Global Downturn: Initiating a Forward-Looking Debate

Abstract

The global financial crisis has created a structural break in the global economy. Businesses thus need to reassess the strategies they have developed to operate in a highly integrated global economy. Initial reactions have often been defensive as companies downsize and call for government support. However, times of crisis are also times of opportunity. In the short-term, opportunities arise for instance in 'value for money' segments. Long term opportunities require managers to develop foresight to use the crisis to position themselves for the next upswing. Business leaders thus need to develop scenarios of the new economy, and envisage their role in it.The current public debate largely focuses on the origins of the crisis, yet it is time look forward to address the question, how can businesses survive the crisis, and position themselves for the recovery whenever it may come? This paper aims to initiate this forward-looking debate. The main focus thus is on generating ideas on how to move forward, rather than to provide definitive answers.