Factors influencing the strategies firms adopt in the recession.

I will be speaking about the factors that made the businesses react to the recession in the way they did.
One factor could of been there price elasticity because if you are inelastic this means that you can afford to put your prices up with the raising costs, but if you are a small business and are elastic, this will be harder as if you raise your prices with your costs you will lose customers and so more money, so they need to find other ways of making the money back of which they are losing by putting the prices up.
Another reason it HR or employee relations, this means if you have good employee relations or Hr you can reduce their wage, or the amount of time they work to reduce their costs and delay putting their prices up, an example of this is KPMG these offered 11,000 staff a dramatic cut in hours hoping it would save them making people redundant, and so they could lower their costs and keep the same amount of people working with the company.
The main one in this recession I would say is the availability of finance, this is if you can get banks to lend you money or if you can get any kind of funding this could be through the stock market or through methods like business angels. In this recession banks have not been borrowing as much as they normally would have because they have had their own cash flow problems, this has left many businesses without an available finance option. An example of a business of this happening is to a small business called 2K manufacturing, this is a manufacturer that produces an award winning material, he was turned down by all the UK banks for funding this left him with a big gap to fill as he wanted to expand and he ended up going to a bank abroad.