The Interpublic Group of Companies is one of the four biggest global advertising holding companies in America, with a full-year revenue of $6.5 million and over 41,000 employees. With lineage that goes back to the 1870s, this institution is one of the United States’ earliest advertising agencies. It wasn’t until a century later that the company went public. Since then, the Interpublic Group of Companies has continued to be a leader in its respective industry.
During the 2009 economic recession, a lot of major companies felt threatened. Despite longevity and stability, their stocks fell, costing them millions of dollars of possible returns. While their competitors were on the brink of bankruptcy, the Interpublic Group of Companies remained strong. It was business as usual for them, as well as nine other companies that stayed strong during the recession. Their services, which include consumer advertising, interactive marketing, media planning, and public relations, became an asset for other institutions that struggled with rapidly declining economic conditions. The company was not invincible to the effects of the market plunge, but damage to their business was so minimal that they were able to rise above others.
The company’s story of success, however, was not without a hint of controversy. In the mid-2000s, their oldest and largest subsidiary, McCann-Erickson, became embroiled in an accounting scandal. Inflated income worth $600 million was uncovered, consequently leaving the company with sanctions from the Securities and Exchange Commission and a lawsuit from its shareholders. These events led the Board of Directors to get a new management team – the same team that brought the company success during trying economic times.
The ups and downs of the Interpublic Group of Companies serve as a model for thriving businesses. They have suffered losses, but they were able to learn from these experiences to bring forth a foolproof business model few companies can match.