Navigators in doubt

Written by Press Trust of India | Updated: Jan 31 2009, 05:48am hrs
A sizable number of senior managers worldwide doubt their companies strategy to navigate through the current economic downturn, says a survey by global consultancy Booz & Company.

43% of senior managers doubt that their (companies) leadership has a credible plan to address the economic crisis

46% are not sure that their leadership could carry out the plan, credible or not

75% of senior executives worldwide consider their companies to be financially strong despite the recessionary conditions

54% of the respondents expect the crisis to ultimately have a positive impact on their company

85% of respondents in India believe their company is financially strong and nobody thinks they need urgent financial support

65% high number of hard-hit companies worldwide are not doing enough to ensure their own survival

25% of companies that state they are financially strong are not taking advantage of opportunities to improve their position in the crisis

The survey found companies optimism does not square up with their balance sheets and there is a disconnect between many companies' financial/competitive position and strategic response

The CEOs of leading global companies need to rethink their strategies, as there liquidity positions are precarious after there debt-fuelled growth binge wherein firms had chased valuations rather than old fundamentals of revenues

The survey captured responses from managers in 65 countries, including India, UK, Switzerland, North America and Western Europe