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Discussion in recession - Coursework Example

The economic conditions are directly linked with the overall discretionary purchases undertaken by the households, while there is also a high degree of implication on the overall volume of necessity purchases. Due to the fact that all businesses are commercial organisations that have the underlying aim to increase shareholder’s wealth. It is therefore argued that recession is one of the critical downside risk facing contemporary businesses. The critics of this argument have however noted that recession can be seen as an opportunity for businesses to sharpen their business models. Drawing upon Rampini et al (2014), the businesses that have lean and agile structures develop sustainable competitive advantage that does not only help them survive through a recession but also flourish and expand their presence. The aim of this debate is therefore to critically analyse and appraise the thinking that recession is the most critical downside risk facing all businesses.