Economic Consequences

Interesting article about 12 brands that may disappear in 2009 (“Twelve Major Brands That Will Disappear”).  The summary reasons are:

• Violate Credit Facility Covenants (1)
• Not Cash Flow Positive (i.e. not profitable) (2)
• Wrong-Sized (Built infrastructure, but growth has not come and no longer profitable) (4)
• Shrinking Industry (not cash flow positive) (2)
• Toxic Brand (1)
• Plus Chrysler has all of the above problems.

For service oriented employers “Right-Sizing” may mean merging or acquiring a company, brand, product, or technology to increase revenues as the forecast for most sectors is stagnant at best (health care, education, government, and outsourcing not withstanding). 

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