HOW TO SURVIVE THE CURRENT ECONOMIC DOWNTURN

The Strategies of Organizations to Survive the Current Economic Downturn

The Strategies of Organizations to Survive the Current Economic Downturn

Thomas Edison once said,

"Be courageous. I have seen many depressions in business. Always, America has emerged from these stronger and more prosperous. Be brave as your fathers before you. Have faith! Go forward."

The global financial meltdown has come and gone but the ripples and effect will still remain fresh in the minds of many people for years to come. To those who were prepared, the economic recession was the best of times and to those who weren't prepared; it was the worst of times. The global economic recession came like a tsunami and swept away lots of businesses; both big and small. (Dixon et al, 2010)

But despite the massive loss experienced by so many small and big business owners, there were still some die hard successful entrepreneurs who refused to be cowed by the global economic recession. Like every other entrepreneur, I was also hit by the recession but my businesses stayed afloat and survived. (Allen & Gale, 2008)

1.   Exit all other investments and focus on building the organization's business

                "The wise man put all his eggs in one basket and watches the basket." - Andrew Carnegie

This was the first step organizations took when the recession set in. Immediately the signs of an impending recession filtered in, organizations sold majority of the stocks they owned and used some of the cash to tighten up their own financial statements.

Organizations also made sure their companies sold majority of the stakes they owned in quoted companies and the cash pulled out was used to strengthen our balance sheet. Now what was the motive behind this strategic move? They took this move because they knew a severe drop in price and value is ...