Business Cycles – Questions Executives Need to Ask, Paper360º January/February 2020
Because many factors impact its multiple segments, the pulp and paper (P&P) industry is complex. As in other industries, P&P business leaders must rely on their ability to understand and respond to the industry’s cyclical nature and long-term trends. However, the capital-intense nature of the P&P industry turns every decision into a business imperative. How well a business leader can predict the next business cycle has long-term effects on profitability, shareholder value, and business longevity. But how can business leaders predict the ups and downs in a reliable way?
Successful businesses do not depend on guesswork. They leverage robust business intelligence based on an understanding of factors that have impacted historical performance, and then use that knowledge to predict how their segments will behave in the future.
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