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Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
Romania Business Outlook Survey - January 2013
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Romania Business Outlook Survey - January 2013

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“A vision for growth” explores perceptions of top executives from major companies operating in Romania regarding the business outlook for 2013. …

“A vision for growth” explores perceptions of top executives from major companies operating in Romania regarding the business outlook for 2013.
This Ernst & Young report is based on a survey of 105 C-suite level executives from companies in various sectors, who provided a perspective on how the domestic business environment is perceived at the beginning of 2013.

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  • 1. A vision for growthBusiness outlook surveyRomania 2013
  • 2. A Vision for Growth 2013Page 2What is “A vision for growth”?“A vision for growth” explores perceptions of top executives from major companies operating inRomania regarding the business outlook for 2013.This Ernst & Young report is based on a survey of 105 C-suite level executives from companies in varioussectors, who provided a perspective on how the domestic business environment is perceived at the beginningof 2013.5 mainfindings1 25% of respondents foresee a significant growth (+10-30%) of their company’s turnover in 2013,while 51% expect a growth rate of +5-10%.37% of the respondents expect the profit growth rate of their company to rangebetween 5 to 10%, and 31% between 10 to 30%, although early forecasts present 2013as difficult year.Only 2% of respondents say the salary increase in their company is expectedto exceed 10%, while 55% expect it to range between 5 to 10%. However, 42% say thesalary increase will be 0%.75% of respondents say their company’s strategy to increase sales consists ofintroducing new products/services for existing clients, while only 33% say they will enternew geographic markets for existing products/services.Most companies are willing to innovate, but they want to do so utilizing internal resources(63%). There is a tight call among new business opportunity, customer satisfaction, andoperational efficiency, when it comes to areas of innovation utilization.2345
  • 3. A Vision for Growth 2013Page 3A vision for growthBusiness outlook surveyRomania 2013Although 2013 appears to be achallenging year in many respects,many companies say they expectto grow.Bogdan Ion, CountryManaging Partner
  • 4. A Vision for Growth 2013Page 4Please indicate the main three elementsthat you use to define success. (multiple answers)Question 1Usually, companies measure their success by a combination of financial results, market shareand brand awareness, but customer satisfaction appears to be very high in their criteria list.Total Respondents: 99(Skipped this question: 6)38%64%77%93%Brand awarenessMarket shareCustomer satisfactionFinancial results0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
  • 5. A Vision for Growth 2013Page 5How much do you expect your turnover to grow in 2013?(one answer)Question 225% of respondents foresee a significant growth (+10-30%) of their company’s turnover in2013, while 51% expect a growth rate of +5-10%.Total Respondents: 98(Skipped this question: 7)0%3%4%17%51%13%12%-20 to -30%-10 to -20%-5 to -10%0%+5 to 10%+10 to 20%+20 to 30%0% 10% 20% 30% 40% 50% 60%
  • 6. A Vision for Growth 2013Page 6How much do you expect your profit to grow in 2013?(one answer)Question 337% of the respondents expect the profit growth rate of their company to range between5 to 10%, and 31% between 10 to 30%, although early forecasts present 2013 as difficult year.Total Respondents: 97(Skipped this question: 8)3%0%6%23%37%22%9%-20 to -30%-10 to -20%-5 to -10%0%+5 to 10%+10 to 20%+20 to 30%0% 5% 10% 15% 20% 25% 30% 35% 40%
  • 7. A Vision for Growth 2013Page 7As the chart shows, 56% of respondents expect no increase in the employees number in 2013,but 21% foresee a slight increase of 5-10%, mainly due to expected increased activity.How much do you expect your number of employeesto grow in 2013?(one answer)Question 4Total Respondents: 98(Skipped this question: 7)0%4%14%56%21%2%3%-20 to -30%-10 to -20%-5 to -10%0%+5 to 10%+10 to 20%+20 to 30%0% 10% 20% 30% 40% 50% 60%
  • 8. A Vision for Growth 2013Page 8Only 2% of respondents say the salary increase in their company is expected to exceed 10%, while55% expect it to range between 5 to 10%. However, 42% say the salary increase will be 0%.How much do you expect the salary level in yourcompany to grow in 2013? (one answer)Question 5Total Respondents: 99(Skipped this question: 6)0%1%0%42%55%2%0%-20 to -30%-10 to -20%-5 to -10%0%+5 to 10%+10 to 20%+20 to 30%0% 10% 20% 30% 40% 50% 60%
  • 9. A Vision for Growth 2013Page 9Confidence in industry growth is rather low, even though most respondents expect their ownrevenues to grow (see page 5 and 10).How confident do you feel regarding the growthof your industry for the next 12 months?(one answer)Question 6Total Respondents: 99(Skipped this question: 6)16%44%35%4%Not at all confidentSlightly confidentSomewhat confidentVery confident0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
  • 10. A Vision for Growth 2013Page 10The difference between confidence in industry growth and company growth forecast is quiteremarkable, which could show that companies place an important trust in their strategy.How confident do you feel regarding the growthof your company for the next 12 months?(one answer)Question 7Total Respondents: 99(Skipped this question: 6)3%31%40%25%Not at all confidentSlightly confidentSomewhat confidentVery confident0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
  • 11. A Vision for Growth 2013Page 11Low cost does not seem to be the main strength of the respondents’ competition in the localmarket, competitors’ brand becoming more important in 2013.Please describe the main strength of your competitorsin the local market, Romania. (one answer)Question 8Total Respondents: 96(Skipped this question: 9)39%31%14% 14%2%0%5%10%15%20%25%30%35%40%45%Strong brandawareness (trust)Low cost Partnerships Distribution channels R&D
  • 12. A Vision for Growth 2013Page 12Where would you position your sales strategy betweenthe two following dimensions: relational and transactional?(one answer)Question 9Relational companies build long-lasting relations with their customers, while transactional ones focusonly on transactions. 68% of the respondents to our survey say their company has a 100% relationalsales strategy, aspect which should be considered when reading the next 2 slides.68%24%6%2%100% Relational50% Relational50% Transactional100% TransactionalTotal Respondents: 98(Skipped this question: 7)
  • 13. A Vision for Growth 2013Page 13To what extent do you expect your customers demandsto change in the next 12 months? (one answer)Question 10While 2% of respondents expect their customers’ demand to change dramatically,66% foresee only a slight change.Total Respondents: 99(Skipped this question: 6)66%32%2%Somewhat changeStay the sameChange dramatically
  • 14. A Vision for Growth 2013Page 14What impact will the change in customers demand haveon your company in the next 12 months? (one answer for each option)Question 11Even though the previous chart showed that companies do not expect substantial changes in customers’demand, the highest impact (if any) could occur on innovation strategy, brand positioning, marketing andoperations.Total number of responses: 57618%21%33%49%36%24%64%60%47%46%54%53%19%19%20%5%10%24%0% 20% 40% 60% 80% 100% 120%OperationsMarketingBrand positioningCSR (Corporate Social Responsibility)Organizational structureInnovation strategyNo impactModerate impactHigh impact
  • 15. A Vision for Growth 2013Page 15Most companies are willing to innovate, but they expect to do so utilizing internal resources (63%).How do you plan to use innovation in your companyin the next 12 months? (one answer)Question 12Total Respondents: 99(Skipped this question: 6)63%20%7%7%3%We will rely on in-house innovation for our activityWe will rely on others innovation for our activityWe will not use innovationWe will partner with research and educational organizationsOther0% 10% 20% 30% 40% 50% 60% 70%
  • 16. A Vision for Growth 2013Page 16How does your company plan to use innovationto support the overall growth strategy? (one answer)Question 13There is a tight call among new business opportunity, customer satisfaction, and operationalefficiency, when it comes to areas of innovation utilization.Total Respondents: 98(Skipped this question: 7)33%24%20%15%5%3%0%5%10%15%20%25%30%35%Innovation will befocused on newbusinessopportunityInnovation willfocus on satisfyingcustomerschanging demandsInnovation will befocused onoperationalefficiencyInnovation is ourmain competitiveadvantageInnovation will notaffect our overallgrowthOther
  • 17. A Vision for Growth 2013Page 17The high dependency on labor force’s skills indicates that companies are fully aware of thedirect link between employees’ competency level and company’s performance.How would you rate the dependency of your companyssuccess on the skills of the labor force? (one answer)Question 14Total Respondents: 97(Skipped this question: 8)1%23%60%16%Low dependencyMedium dependencyHigh dependencyExtremely high dependency
  • 18. A Vision for Growth 2013Page 1883%12%5%Dependent on education leveland key skillsDependent on employeeretentionHighly influenced by salarycostsWhich of the following factors best describe the impactof your labor force on companys success? (one answer)Question 15No less than 83% of the respondents say that education and skill of labor force play the mostimportant role in their company’s success.Total Respondents: 99(Skipped this question: 6)
  • 19. A Vision for Growth 2013Page 19What do you consider to be the most importantattributes for the leadership of your organization?(multiple answers)Question 16Industry expertise, good risk/caution balance and embodiment of the organization’s values andculture (tone at the top) appear to be the most important attributes of the successful leader.Total Respondents: 99(Skipped this question: 6)59%54% 53%44% 41% 38%33% 31%0%10%20%30%40%50%60%70%IndustryexpertiseStrikes the rightbalance betweenrisk taking andcautionArticulates andembodies thevalue and cultureof theorganizationEngageseffectively withmultiplestakeholdersDecisiveness Can lead in aregionalbusinessenvironmentCan commandthe respect ofcolleagues andreportsHas a stronggraps offinancials
  • 20. A Vision for Growth 2013Page 20Over 95% of companies agreed that legal, tax and regulatory environment playsa moderate to high role in their growth.To what extent does the legal, tax and regulatoryenvironment play a role in the growth of your company?(one answer for each option)Question 17(Total number of responses: 289)4%5%4%46%49%49%49%45%46%0% 20% 40% 60% 80% 100% 120%TaxLegalRegulatoryNo roleModerate roleVery important role
  • 21. A Vision for Growth 2013Page 21Which of the following best describes your company primarystrategy for financing its investments in the past year?(one answer)Question 18When it comes to financing investments, in 2012 companies used mostly bank loans (47%),followed by share capital increase (12%).Total Respondents: 97(Skipped this question: 8)47%18%4%31%Our company used bank loans to finance its investmentsOur company attracted share capital increase to finance itsinvestmentsOur company used venture capital to finance its investmentsOther (intercompany loans, own resources, reinvested profit)0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
  • 22. A Vision for Growth 2013Page 22Which of the following best describes your companyspreferred strategy for financing its investments inthe following 12 months? (one answer)Question 19In 2013 as well, the main companies’ strategy for financing investmentsappears to be through bank loans (46%).Total Respondents: 93(Skipped this question: 12)45%20%8%27%0%5%10%15%20%25%30%35%40%45%50%Bank loans Share capital increase Venture capital Other (intercompany loans, ownresources, reinvested profit)
  • 23. A Vision for Growth 2013Page 23Which of the following best describe the reaction of yourcompany to the business environment in the past year?(one answer)Question 20In 2012, businesses reacted to the pressures coming from the business environment by reducingcosts (30%) or increasing productivity (28%), substantially more than by talent acquisition (4%) orM&As (1%).Total Respondents: 97(Skipped this question: 8)30%28%16%13%5%4%2%1%Cost reductionProductivity increaseNew productsRestructure of the organizationOtherTalent acquisitionReduce capital investmentMerger and acquisitions0% 5% 10% 15% 20% 25% 30% 35%
  • 24. A Vision for Growth 2013Page 24Which of the following actions will your company taketo increase sales? (one answer)Question 2175% of respondents say their company’s strategy to increase sales consists of introducing newproducts/services for existing clients, while only 33% say they will enter new geographicmarkets for existing products/services.Total Respondents: 99(Skipped this question: 6)75%33%31%26%20%18%8%5%0% 10% 20% 30% 40% 50% 60% 70% 80%Introducing new products and/or services for existing clientand to attract new clientsEnter new geographic markets for existingproducts/servicesOpening new distribution channels/reorganizing distributionto use multiple channelsIncrease investment in marketing and salesAdapting existing product/service for new geographicmarketsCutting pricesIncrease pricesMerging with and/or acquiring competitors to increasemarket share
  • 25. A Vision for Growth 2013Page 25In case of stagnation/decline in your current markets what willbe the step/s your company will pursue in the next 12 months?(all that apply)Question 22Most companies (76%) say that they will continue to stay on the market if it declines. A highpercentage of companies (46%) though, are willing to transform the market through innovativeapproaches in case such a decline occurs.Total Respondents: 98(Skipped this question: 7)76%46%15%7%2%0% 10% 20% 30% 40% 50% 60% 70% 80%Stay on the market until is stable again in order to secureit and increase the trust levelTransform the market trought innovative approachesGrow on the market through Mergers and AcquisitionsSeek external funding to secure our position on the marketLeave the market and seek new ones
  • 26. A Vision for Growth 2013Page 26DemographicsThe results of this survey reflect theresponses received to ourquestionnaire in the period between21 Jan. and 5 Feb. 2013, from 105top executives of major companiesoperating in Romania.
  • 27. A Vision for Growth 2013Page 27DemographicsRomanian company (yes/no) Business typeNo, 57%Yes, 43%67%29%4%Bussiness to BussinessBussiness to ConsumersBussiness to Government0% 20% 40% 60% 80%
  • 28. A Vision for Growth 2013Page 28DemographicsIndustry sector Company revenue level24%12%10%9%8%7%7%4%4%2%13%Industry/ManufacturingPharmaceuticals/HealthcarePower/Energy/MiningServicesRetail & Wholesale tradeConstruction/Real estateFood & Beverages/AgricultureTelecom/MediaTourismChemicalsOther0% 5% 10% 15% 20% 25% 30%7%14%38%12%29%Less than 1 M EUR1-10 M EUR10-50 M EUR50-100 M EUR100 M EUR +0% 10% 20% 30% 40%
  • 29. A Vision for Growth 2013Page 29DemographicsEntity type Job title of respondent67%22%10%1%Privately ownedPublicly listedPrivate Equity PortofolioCompanyGovernment/State-ownedenterprise0% 20% 40% 60% 80%34%32%8%7%5%4%4%3%3%CFO/Treasurer/ControllerCEO/President/ManagingdirectorManagerBoard memberSVP/VP/DirectorHead of business unitHead of departmentOther C-level executiveOther0% 10% 20% 30% 40%
  • 30. A Vision for Growth 2013Page 30Thank you!

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