More than half of Romanian companies believe the effects of the crisis will be felt into 2011 and expect further falls in their turnovers and cash levels, found a Horvath & Partners study on the effects of the recession on firms, conducted on 248 managers from Germany, Austria, Switzerland, Hungary and Romania.
The strategy of Romanian firms focuses on developing sales teams and strengthening distribution channels, while developing new regional markets and repositioning themselves in terms of pricing, according to the study. Liquidity management issues, which were not a priority between 2001 and 2008, have led to predictions of liquidity falls over the long term for 70 percent of Romanian companies. The percentage is 55 percent for German and Austrian firms.
However, Romanians kept their spirits up, with half of the interviewed companies saying that, despite decreasing sales, they were not in crisis. Measures planned by local businesses include an increase in transparency and improving monitoring systems, while upping business volumes. Secondary measures include stabilizing turnovers, reducing costs and ensuring liquidities, found the Horvath & Partners survey. While managers acknowledge the effects of the crisis and their impact, concrete measures are lacking. In Romania, 58 percent of the interviewed managers believe the recession will last between one and two years.