NEW YORK--(BUSINESS WIRE)--Senior executives at many Fortune 500 companies spanning a wide range of
industries are missing key opportunities for cost containment and
revenue growth during the current recession, finds a recent survey by Booz
& Company. The management consulting firm surveyed 155 senior
executives at Fortune 500 companies and found widespread concern that
traditional cost-containment measures are falling short during this
downturn, as well as clear evidence that new approaches are needed.
The survey found that chief executives and other senior managers are
struggling with the downturn’s scope, timeline, and solutions and often
trying to apply traditional solutions to a very non-traditional
recession. Ninety-two percent of senior respondents cited “constantly
changing objectives due to unstable economic conditions” as a major
challenge to achieving their cost-reduction goals. This indicates that
such unusual economic circumstances may leave senior executives stymied
about implementing new solutions with any degree of certainty that they
will work.
As a result, many companies are turning to traditional spending cuts and
layoffs. Almost 40% of companies surveyed are focused on cost reduction
alone, and most senior managers have already exercised their default
plans. Measures such as across-the-board cuts, working capital
management, marketing spend reductions, and renegotiating purchasing
contracts have been widely employed among respondents. Since these
measures typically realize significant savings within six to eight
months, they are often the first actions taken by companies during
downturns.
(Read the entire release.)
Tags: economy, economic crisis, management
Categories: The Economy