Although businesses around the world are entering 2010 with an appropriately sober view of the business climate, too few companies have taken or plan to take the long-term, defensive measures necessary to survive and thrive during the economic recovery.
The Boston Consulting Group's (BCG) survey of 434 executives from seven countries revealed
- 28 percent say that reducing labor costs is a priority for 2010
- 26 percent have made managing cash flow a priority
- 16 percent say that balance sheets and debt restructuring are a priority
- 13 percent have put exiting noncore businesses on the list of priorities
The vast majority of executives see significant changes in the economic order:
- 69 percent believe there will be negative attitudes toward Western capitalism
- 68 percent project lower profit levels
- 64 percent believe growth will be more difficult
- 71 percent anticipate an increase in labor protection
- 81 percent anticipate an increase in regulation
- 87 percent see increased consumer price sensitivity
BOTTOMLINE: "Companies seem quick to jump, but not to do the tough stuff. It is telling that the organizations most likely to be planning the hard, defensive measures are the market leaders, not the middle-level players."
Additional survey findings are here.