A Review on Corporate Strategies during the Global Downturn: Initiating a Forward-Looking Debate
By: Klaus E. Meyer

Corporate Strategies during the Global Downturn: Initiating a Forward-Looking Debate: Article Review

1. Main purpose of the paper
This paper aims to initiate a forward-looking debate on generating ideas on how to move forward, in time of the global economic downturn rather than to provide definitive answers on the origin of the crisis.

The global financial crisis has created a structural break in the global economy. Businesses thus need to reassess the strategies they have developed to operate in a highly integrated global economy. Initial reactions have often been defensive as companies downsize and call for government support.

However, times of crisis are also times of opportunity. In the short-term, opportunities arise for instance in ‘value for money’ segments. Long term opportunities require managers to develop foresight to use the crisis to position themselves for the next upswing. Business leaders thus need to develop scenarios of the new economy, and envisage their role in it.

The author felt that it is time to look forward to addressing the questionon how can businesses can survive the crisis, and position themselves for the recovery whenever it may come.

2. What is the Global Financial Crisis Trends

The financial crisis originated from problems in the financial sector in the U.S.A. and the U.K. At the core appear to have been unsound lending practices by financial institutions, notably unsound lending practices in the private mortgage lending sector and unsatisfactory risk management practices (Haldane, 2009; Stulz, 2009).

The contagion spread through the global financial sector affecting banks in numerous other countries, and causing an unprecedented credit squeeze as inter-bank lending came to a virtual