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I know, I know, New Year's resolutions are so cliché. But here's one for corporations, which according to BCG, is a must. In a new study, the firm found that too few companies have taken (or plan to take) necessary long-term plans to survive and thrive in the post-2009 economy. In fact, only 28 percent of companies surveyed said that reducing labor costs is high up on their priority list for the coming year, only 26 percent said cash-flow adjustments are a priority, 16 percent said balance sheet restructurings are a priority, and 13 percent said exiting noncore businesses is a priority.
In a survey of over 430 executives at companies with more than $1 billion in annual revenue, BCG senior partners David Rhodes and Daniel Stelter found that companies are too short-sighted in their present actions, but haven't delved into the necessary cost-cutting measures that will ensure the longevity of their business.
"Companies seem quick to jump, but not to do the tough stuff," said Stelter. "It is telling that the organizations most likely to be planning the hard, defensive measures are the market leaders, not the middle-level players. This is true even though market leaders' businesses generally fared better during the Great Recession."
So while CEOs might be tempted to think that cutting costs may ultimately hurt the economy as a whole, at this point they'd be better off looking inward and considering what measures they can take at their own company to ensure that they stay in the game.
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