Page 199 - Accelerating out of the Great Recession

APPENDIX B

technology hardware and equipment industries. Many (60 per-
cent) believed that this focus on innovation will lead to the
emergence of entirely new business models, particularly in the
retail and consumer products industries.
In planning for the future, companies anticipated changing
investor behavior. More than 80 percent expected to see more
conservative investment strategies. Most (roughly 80 percent)
said that they expected this to result in a greater emphasis on
business fundamentals, such as cash management and dividend
payments.
While companies have recognized that the business environ-
ment will remain difficult through 2010, few are convinced that
this will be true in the longer term. Only 30 to 40 percent of
respondents believed that the changes in government, con-
sumer, and investor behavior will persist beyond 2010. Most
regard this as a shorter-term phenomenon.
We found this belief reflected in the actions companies told
us they are taking. While a few have focused on longer-term
defensive actions, many said they had already taken steps to
expand and attack. Getting the balance right—and ensuring
that defensive measures to protect the fundamentals are taken
before (or while concurrently) pursuing an offensive strategy—
will be especially important in a world where growth will be
slow for several years to come.

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