Article 1 reviews "Cost cutting in a downturn". <Tab/>This article states that "according to a study of 377 large businesses by the consultant Bain & Company, sharp managers respond to a downturn by tightening their alliances with stakeholders, not just cutting costs". Aggressive cost management is extremely important during a downturn. However, many executives overreact to disturbing economic reports. Layoffs, for example, are often implemented as a way of holding down …showed first 75 words of 355 total…

…showed last 75 words of 355 total…for laying off too many people, it's hard for them to hire new employees when business is better and they need lots of employees. <Tab/>The bottom line is that companies don't always think about long term goals and they need to start thinking and managing in that way. If more companies operated the same way that Japanese companies operated. We would all live in a much more stable economic environment.