Page 110 - Accelerating out of the Great Recession

CHAPTER 4

DEFENSE

FIRST

The story of the automobile industry during the Great
Depression illustrates the old maxim that a good offense is built
on a strong defense. Companies following this path are far more
likely to prosper in a low-growth economy. They can build
advantage over their slow-to-react or indecisive competitors—
who realize too late that they will not be rescued simply by a
revival of the economy.
The Great Recession forced companies to cope with the
deepest downturn since the Great Depression. And once again,
it was the outperforming companies that responded early and
decisively. Having stress-tested their businesses, these compa-
nies acted the fastest to protect themselves from downside risk,
enabling them to safeguard their financial fundamentals and
ensure liquidity and stability.

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