Though the International Monetary Fund’s latest report says the world economy will expand 3.5%, CFOs are being realists.
In the fifth annual Global Business & Spending Monitor, American Express surveyed over 500 CFOs and senior finance execs at large companies from around the world to find out how they’re dealing with recovery during these trying economic times.
The results showed that CFOs and the like are staying grounded. They expect moderate recovery at best, but they aren’t just standing idly by and waiting for an answer to fall in their lap.
Here are three strategies those surveyed say they are most likely to follow during this period of slight recovery.
Look to your cash reserves
Many CFOs are starting to look to their cash reserves, which may come as a surprise as most CFOs were purposely preserving cash last year as a safeguard. But now’s the time to consider spending down some of that reserve. Those surveyed aren’t going crazy on spending, but most are likely to use this cash to fund ongoing operations, capital investments and R&D.
Invest in new growth opportunities
Now’s the time to jump out in front of the competition. Instead of extolling resources on marketing existing products or services, most surveyed said they were looking to expand into different areas and reach new customer bases, which can aid in boosting revenue streams.
Sales and distribution
CFOs surveyed believe that emerging markets are still the keys to economic growth. They’ve predicted that sales and distribution — not sourcing, production, or outsourced business functions — are activities their companies would increase in emerging markets soon.
To read the entire Global Business & Spending Monitor report, click here.
