Disaster's Aftermath: Strategy or Instinct?

Dive into the unexpected with this eye-opening piece from the London School of Economics! Discover how firms flip their strategies upside down after major disruptive events, like earthquakes or pandemics. Ever wondered if companies act on cold, hard facts or just wing it with gut feelings post-crisis? This article explores the shaky ground of decision-making in the aftermath of chaos, revealing surprising shifts in inventory and flexibility. Who knew the aftermath of disaster could be so riveting?

Navigating the Unpredictable - How Firms Weather Storms

Imagine a world where every company could predict and prepare for every disaster, from earthquakes to pandemics. Sounds ideal, right? Yet, the reality is far from this. The 2011 Japan earthquake was a wake-up call, showing that the unexpected can have massive ripple effects on global supply chains and economies. This topic dives into the intriguing world of how firms react to such unforeseeable events, known as low-probability high-consequence (LPHC) events. It's crucial because it's about more than just companies and economies; it's about understanding human behavior under uncertainty, the balance between efficiency and preparedness, and how our world is interconnected in ways we might not even realize. For you, this could mean exploring why the sneakers you wanted are out of stock, or why your favorite snack's price suddenly spiked. It's a glimpse into the complexities of the modern world, and how we strive to navigate its uncertainties.