However, call me a little bit of a sceptic, but how often do you think industry in general of late has used the recession and the infamous credit crunch as the reason why they must make these job losses or cull these particular production facilities, close certain retail stores in certain locations? I am sure I am not alone in this view. It really is a great time to bury bad news or re-align a business under the auspices of the difficult trading conditions we are experiencing.

Of course the recession is real enough and the automotive sector is a good example of how bad things have become but no-one can convince me that Woolworths, MFI and many others would not have happened anyway. Any business that does not change to meet the challenges of today and as a consequence suffers from significant strategic drift will ultimately fail. 

All the current difficult trading environment has done is hasten the end of already ailing businesses. It seems harsh but it is a form of economic euthanasia where the weak cannot survive. Looking at it another way, imagine a channel which has jagged rocks some forty feet below the surface. Most craft whether equipped with sonar or not are able to navigate the channel and clear those rocks hidden below. Now imagine the water level being halved. What happens? The rocks are closer to the surface. Those with control over their direction and knowledge of the conditions have a greater chance of prevailing those out of control and ignorant of the conditions will sink. The current conditions have lowered the ‘economic water level' and cleared out the weaker vessels. Do you agree or am I being harsh?

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