Planning for the economy's recovery

The tactical and strategic plans of most business organizations have been dealt severe setbacks by the recent recession. Many forecasters did not anticipate that the Administration's fiscal program would create a crisis of near‐term economic difficulties. Only a few predicted the persistence of high interest rates and the prolonged decline in business activity, and the present economic crunch caught most corporations by surprise. As a result, management attention is now focused on the immediate financial problems caused by disastrously low sales, excessive borrowing costs, and price cutting, and not on tactical or strategic planning.