Write one key takeaway per chapter. Write at least 100 words for each chapter summary.
Managers need to know what causes recessions and Downturns in order to properly prepare themselves for the future. They must also know the signals for recessions In order to help provide evidence for the Potential recession.
A manager needs to monitor The price of inputs in the price of outputs. This is because the difference between the two is the profit margin, or degree to which the company is making a profit.
A manager needs to monitor:
A manager needs to develop an early warning system that includes:
A manager needs to know the first steps through the business cycle. The first step is when managers assess the companies vulnerability to a upcoming recession. The second step is that managers must Prepare a contingency plan in case of a recession. The third step is to build flexibility into your company, which will improve day-to-day operations. In the fourth and final step is that managers should develop an early warning system to detect recessions.
A manager needs to: A manager needs to know when their company is in a foreign market, and they must know the differences between the foreign market and our market. They must also focus on the business cycles in other countries, and determine the similarities and differences from the United States market and the foreign countries market.
A business manager, to assess the risk of a regional recession, needs to monitor How similar our region is compared to the national economic cycle.
| A manager should: | |
|---|---|
| When prices rise and competitors announce new expansion plans | Stop adding new capacity. Sock away cash and wait for the industry’s over-expansion to play out. |
| When writers gather up all the bad news at the bottom of the market | Pick up new capacity as troubled competitors offer up equipment and facilities at discounts. Do not move too quickly and wait for real distress by monitoring the financial conditions of weak competitors. |