Question

Suppose you are the CEO of Nike and the world is coping with an economic recession. Would you change the corporate strategy? If so, what changes would you make and why? If not, why not?

Answer 1

Answer-

Yes, I would change various operations in the firm.

The Economic recession is a clear indication of a decline in various activities in the economy for an average of one month. Most importantly the manager needs to comprehend that, economic activities influence the corporate plans, performance and particularly the success of the company. During the recession, I need to cut short the cost of operation through retrenching staff and then wait for the economy to turn.

Understanding what a corporate strategy is vital to coping with the economic recession. A corporate strategy is an organization of activities to achieve various goals and objectives of the firm.

How do recession impact on big business?

After analyzing 1000 manufacturers who encountered the effect of the economic recession, the analysists came up with the following conclusions likely to happen to the big firms during the recession.

Credit impairment

Bankruptcy

Benefit reduction and reducing the number of employees.

Reduced quality of goods and services.

Reduced accessibility to the customers.

In general, when a recession takes its course, the company is forced to cut its expenses to fit the current situation. Consequently, the company suffers consequences listed above.