19. WHAT´S THE FIRST MISTAKE BUSINESSES MAKE?

26. RECESSION = WHEN YOUR NEIGHBOR LOSES HIS JOB DEPRESSION = WHEN YOU LOSE YOUR JOB

28. Example: September 11 Terrorist Attack in US ; India-Mumbai Got Attacked ; Pakistan Got Attacked ; Series of such incidences lead into war situation

29. CONTINUED IN NEXT SLIDE Terrorists’ Attack on 11 th September in US Created fear in people People cancelled their travel plans Airlines & Hotel Industries badly hit Resulted in low occupancy rates Airline & Hotel Industries offered discounts, gift coupons, to attract people But, still, no improvement in occupancy rate Airline & Hotel Industries started “ Cost Reduction” activities

30. Terrorists’ Attack on 11th September in US i] Reduce No. of flights ii] Lay off people iii] Salary reduction to “ Not laid off people” In flight meals reduced Low or No income to spend and buy goods They became careful due to the fear of loss of job Meals supplying company got the hit Catering company now, lays off people Demand for other goods come down Started saving money instead of spending Demand for other goods come down Airline & Hotel Industries started “ Cost Reduction” activities

31. So, you can see how the hit on Airline and Hotel industries can affect “Un-related” industries in the end; One industry can hit many other industries when the confidence level of millions of consumers & producers drastically comes down ;

33. Is your company “Chasing Its Tail” or experiencing the "Fatal Five" danger signs: – Slowed growth – Decreased revenues – Increased costs – Lower profitability – Unpredictable cash flow

36. Recession and our Role

42. Move out of the overcrowded market space. • Move into a new market space where there is no competitor – wide open playing field of potential revenues and profits. • Forward thinkers are shifting their focus from recession to recovery … and they will be poised for growth when the economy turns around .

44. They all expanded their sales, profits and market share in a recession , and most went on to dominate their category.

46. They maintained or increased their advertising and promotions while their competitors were cutting back! They focused on opportunity, not fear. They saw a vacuum left in the market and filled it.

47. “ The company courageous enough to stay in the fight when everybody is playing it safe can bring about a dramatic change in market position.”

48. During the 1920s, Fords were outselling Chevrolets by 10 to 1. In spite of the Depression, Chevrolet continued to expand its advertising budget, and by 1931 Chevrolet took the lead . 1933 Ad 1927 Models

49. In 1990 Nike and Reebok were virtually tied for first place in sales.

50. “ During the 1990-91 recession, Nike tripled its advertising spending, while Reebok cut back.”

51. “ When America emerged from the recession, Nike's profits were nine times higher than they were going in – and Reebok has been eating dust ever since.”

53. Wal-Mart founder Sam Walton, on the 1991 recession “ I’ve thought about it, and decided not to participate” Two years later, Wal-Mart’s share price was up 200%

55. Thank You!