New York, August 15 : Amid the credit crisis and economic slowdown, businesses are adopting a ‘back-to-the-basics’ approach to cope with the challenging economy, says a survey of chief executives of companies listed on the New York Stock Exchange. The chief executives included K V Kamath of India’s ICICI Bank and Indra Nooyi of Pepsico.
According to the NYSE Euronext 2009 CEO report, the current US and global economic conditions would separate the best companies from great ones. “A renewed focus on a strong balance sheet, strategic acquisitions, operational efficiency, sound management practices, as well as attracting and retaining the best workforce are the key to future growth during turbulent economic times,” the report said. The fourth annual survey of CEOs of NYSE Euronext-listed companies was conducted from February 29 to March 31 and 254 CEOs participated in the study. About 72 per cent of the CEOs surveyed are based in the US while 28 per cent are from the non-US companies.
About two-third of the CEOs view BRIC (Brazil, Russia, India and China) nations as an opportunity. Pointing out that “sensible acquisitions and expansions are targeted in BRIC countries”, the report said that out of the CEOs from non-US firms, nearly eight in 10 saw these nations as an opportunity. “The majority say they would maximise their opportunity in the BRICs countries by establishing or expanding local marketing and sales activity,” it said.
However, K V Kamath of India’s largest private sector lender ICICI Bank was quoted as saying, “Global companies have to adapt to operate in markets with very high growth rates. It puts a strain on manufacturing capabilities and demand for talent.” A majority of CEOs surveyed believe that changes in American legal and regulatory systems would have a positive impact in the competitive position of the US capital markets. “US-based CEOs are more optimistic about the impact these will have, compared with the non-US-based CEOs. US-based CEOs are less likely to believe a convergence of international accounting standards would have the same positive impact,” the survey said.
