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Estimating price of funds for giant promoting and technology investments at a financial debt-financed brokerage company.

In early 2020 the pandemic plunged the airline industry into crisis, as passenger targeted traffic on U.S. carriers plummeted ninety six% over a yr-about-12 months basis. Like most of its peers, This Site Alaska Airways responded by quickly going to stabilize its finances. It executed a using the services of freeze, Slice senior managers’ salaries, renegotiated payment terms with distributors, suspended inventory repurchases and dividend payments, and decreased funds paying. But the corporate also did a thing that established it aside. As rivals canceled airplane orders, Alaska Airlines’ leaders spotted an opportunity to update and expand the organization’s fleet at appealing charges whilst streamlining operations by shifting from a mixture of Airbus and Boeing aircraft to only Boeing.

(See “Roaring Away from Recession,” HBR, March 2010.) Several abide by-up studies by consulting corporations have reaffirmed the Idea that unfavorable current market disorders independent winners from losers, giving resilient companies a lengthy-phrase edge. But like my very own perform, this investigate continues to be largely restricted to technique and tactics. It doesn’t investigate the mindsets that permit leaders to embrace both protecting and possible approaches at the same time.

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