Preparing for the next recession - The McKinsey Quarterly - recession companies strategy - Strategy

Operations, Performance Article, recession companies strategy

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Preparing for the next downturn

Managers who are thinking ahead to the next recession can learn from companies that successfully prepared for the last one.
Companies that emerged from the recession on top of their industries went into it with flexibility in their balance sheets, operations, and product mix.

This article contains the following exhibits:

Exhibit 1: Top-quartile companies are better prepared.
Exhibit 2: Starbucks accelerated its growth during the recession in part by increasing the number of licensed and owned locations.
Exhibit 3: To offset falling call prices, Verizon combined an expanding customer base with increasing average revenues per user.

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