Study: Cost cutting and improved business relationships, key for profitable Romanian companies during crisis

Companies active in Romania that remained profitable during the last two years focused on cutting costs and consolidating their relationship with business partners, according to a study issued by Ernst & Young. A banking loan was a first option for 60 percent of the respondents included in the study, but other financing means, like EU funding and even venture capital have been taken into account. While attention to clients and quality of products and services were among the main factors during the last period, cost cutting was the key competitive advantage.

Expectations for the future are fairly positive. Three quarters of those who were included the study see significant business opportunities for their companies in Romania in 2012, while 47 percent see opportunities on the European Union market. Even so, changes in consumer behavior are expected to have an impact. Some 42 percent of respondents believe innovation will be key, while 35 percent estimate a need to adapt operational processes. A quarter also think that a reshuffling of their organization might be needed. Ernst & Young interviewed managers of 172 companies with notable results in their industry and geographical area- all of which recorded a profit in 2010. More than half of these companies – 53 percent – have foreign shareholders. editor@romania-insider.com (photo source: Photoxpress.com)