In today’s world the question of third party interests is of increasing importance as companies leave their footprint around the globe in different societies. How and to what degree should executives allow for these externalities?
In a survey conducted in March 2009, Arthur D. Little spoke to senior executives around the globe about the economic downturn. The survey focuses on what the crisis means to business and how executives can prepare for the return of better times. The results are not all gloom and doom.
In a credit crisis, one common way of finding cash is to reduce working capital. However, successfully reducing working capital within one company can damage other businesses in the supply chain, exacerbating an already difficult situation all round.
The squeeze is on for subassembly manufacturers. Sharp declines in demand for the products of their customers has left them under heavy pressure to reduce their prices, and the only way they can do that is by ensuring lower prices from their own suppliers.