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Applied Research ,Ethods Essay

3782 words - 16 pages

Recently, there has been a global recession. The world economy has suffered from this global recession. Many businesses have shut down or most huge amounts of money. In this research paper we will discuss the recent global recession and how it has affected companies all over the world. Companies all around the world maintain emergency systems which can help deal with such situations. These strategies are meant to prepare the organization for future events. In our paper, we will find out whether these strategies are actually helpful and how many companies actually work on them.LITERATURE REVIEWDuring the past few years the world at large has experienced a recession like never before. Major ...view middle of the document...

This recession resulted from the financial crisis. According to some economists a normal recession does not last for more than 1 year. It takes the economy twice the amount of time getting out a recession than it does getting into it.When this recession hit and companies experienced a drop in sales, they needed to overcome this problem. They had to adopt a new strategy which could help increase sales or at least the levels of sales but at the same time reduce costs. This was becoming very difficult because, prices around the world were increasing. In such times, many companies came up with different strategies, some focused on reducing costs while others focused on reducing production. Some companies laid off workers while some companies contracted in size.Despite all of this there were still some companies which were still making a profit, one such company is Wal-Mart. In this list of companies, there are internet and new technology companies as well telecommunications companies which are still doing well. Analysts say that the recession did not affect them that much but there is also another reason which is that these companies had prepared themselves for such situations and were ready when for them. Thus, we can say that companies which are prepared with their strategies are more effective and profitable in times of recession then companies which might do really well but when things go wrong, they are the first to fall.There are many ways that companies can cope with difficult times; it is just about finding the right technique that fits the company. For this, research and trial and error needs to be performed beforehand. When a recession hits it will not wait for the company and the businesses to adjust themselves according to the situations.According to the World Bank, this recession will continue for another two years, so those companies which have not prepared themselves should do so now. Countries have dropped their trading figures as they are trying to maintain their economies. The growth rates have slowed. During such times, there is not much prospect for companies. They need to cope with the situation and make the most of it.Some analysts say that decisions that companies take during a recession are better than the decisions they make under normal circumstances. This is because they tend to scrutinize their decision and cross checks it multiple times. They will also analyze the data over and over again to make sure that the result that they are getting is the correct one. This is because they are investing money and time during a recession. They do not want to increase the risk of a loss; hence double checking ensures them that their decision is the right one. In normal times, such energy and though is not put into making one decision.Also, when a new decision has been implemented during a recession, the team implementing it makes a greater effort to ensure its success. They will work twice as hard as they would under normal...

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