ZAGREB (Croatia), September 29 (SeeNews) – According to latest study by Roland Berger Strategy Consultants, Croatian companies expect the economic crisis to get even worse in the future and expect recovery to begin only in the third quarter of 2010 or in 2011, Croatian media reported.
The survey covered the directors and managers of about 40 Croatian small and medium-sized companies from 13 different industries, state-run news agency Hina (www.hina.hr) reported.
The study found that the construction and machine engineering industries were hardest hit by the crisis, while the pharmaceutical industry remained mainly unaffected.
In Croatia, just like in the world, there are difficulties in obtaining credit owing to stricter lending terms, the survey said.
As many as 96% of respondents said that credit terms had become unfavorable, which forced them to cut costs at all levels, reduce investment and resort to various sales initiatives, while 44% said they would cut staff costs by 10% either by slashing bonuses or through lay-offs.
Most respondents said they saw the present crisis as a chance to reduce their cost base, focus on their core business and consolidate their market.
The study also found that between 46% and 63% of respondents had already implemented decisions aimed at cost-cutting.
Roland Berger consultants recommended ensuring short-term liquidity, company restructuring and strategic repositioning as ways of improving business performance.