Economic Downturn and Consumers Energy

1997 Words Feb 4th, 2018 8 Pages
Many businesses were not so lucky. While it is true that energy companies often succeed when other companies fail simply because energy is not a luxury but a necessary for the majority of people, it is still important to note that there may have been other factors that allowed Consumers Energy to remain relatively strong during a time when so many other businesses of all kinds were struggling just to stay alive. The company was doing relatively well prior to the downturn taking place, and that was true of other companies in that same industry.
However, the market was changing prior to the downturn in the economy. There were signs that problems were developing in the US economy long before the actual, obvious trouble got started (Berezin, 2005; Dignam & Lowry, 2006). While it was unfortunate that many companies ignored those signs or simply did not know how seriously they should have been taken, other companies were aware of the signs and focused on which direction they should take in order to ensure that they had the most protection from economic difficulty. The firm was prepared for the economic downturn. It got ready for this eventuality by making sure that it had strong, positive cash flow. That required selling some of its assets to other companies. The prices of natural gas had become very volatile, and so…
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