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  • Contingency Planning: Preparing for a Slump in Earnings

Business Strategy

01 Apr 2008

Contingency Planning: Preparing for a Slump in Earnings

  • By Bill Conerly
  • In Business Strategy, Economy

"Preparing for a Slump in Earnings" is a new article from the McKinsey Quarterly.  The authors estimate the corporate earnings could fall 20 to 40 percent this year.  The offer some suggestions for corporate executives preparing for a downturn.  These include both contingency planning for the downturn, and being prepared to take advantage of the slowdown to "hire talent, to continue spending on long-term strategic initiatives, and to target acquisitions."  Good points, similar to what I wrote in Businomics.

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