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Please copy and paste this link: http://hbswk.hbs.edu/item/what-companies-should-not-do-in-the-next-banking-crisis
Read the article in this link. The title of the article is: What Companies Should Not Do in the Next Banking Crises
Then answer this question and include the links of the three sources that you use to support the answer.
Question: Suppose you would like to know about the retail industry. What are some examples of short term versus long term projects that may be adjusted if a recession is on the horizon? Please copy and paste this link: http://hbswk.hbs.edu/item/what-companies-should-not-do-in-the-next-banking-crisis
Read the article in this link. The title of the article is: What Companies Should Not Do in the Next Banking Crises
Then answer this question and include the links of the three sources that you use to support the answer.
Question: Suppose you would like to know about the retail industry. What are some examples of short term versus long term projects that may be adjusted if a recession is on the horizon? Please copy and paste this link: http://hbswk.hbs.edu/item/what-companies-should-not-do-in-the-next-banking-crisis
Read the article in this link. The title of the article is: What Companies Should Not Do in the Next Banking Crises
Then answer this question and include the links of the three sources that you use to support the answer.
Question: Suppose you would like to know about the retail industry. What are some examples of short term versus long term projects that may be adjusted if a recession is on the horizon?
Read the article in this link. The title of the article is: What Companies Should Not Do in the Next Banking Crises
Then answer this question and include the links of the three sources that you use to support the answer.
Question: Suppose you would like to know about the retail industry. What are some examples of short term versus long term projects that may be adjusted if a recession is on the horizon?

Explanation / Answer

In case of a recession, retail industry should keep the short term projects and short term investments going on. Investments on working capital, buying of stocks and its payment etc. should be sustainable as this is their need and requirement. If they cut back on thier stocks thier sales will further take a hit, a situation that is avoidable. Considerations for liquidity must be given a priority over the considerations of profit.

Secondly, the retail industry should look to maintain the same-store sales during recession and should adjust its investments for opening new stores. Opening new stores will be difficult in recession due to lack of funds and capital and poor business and consumer sentiment. The retail industry, should rather focus on maintaining its same-store sales, if not increasing them.

So, long term projects and investments will have to be held up and delayed, until the economy recovers. When the economy recovers, capital will be available and sentiment will be conducive for business growth.

Links: https://hbr.org/2009/04/five-rules-for-retailing-in-a-recession

http://www.businessinsider.com/retail-sales-real-consumers-and-their-recession-level-spending-2011-10?IR=T

http://www2.econ.iastate.edu/research/webpapers/paper_12995.pdf

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