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PwC Pulse 2010What CEOs are sayingIntroductionCEO Confidence Business Performance Foreign DirectInvestmentCEO Priorities People Management Sustainability/Climate ChangeActionsfor GovernmentSurveyMethodologyReviewing contracts –key to cost reductionReviewing contracts scorestop of the league for costreduction initiatives (76%).According to the survey,other cost reductioninitiatives planned overthe next 12 months areinvestment in IT (53%),critically reviewing thesupply chain (47%) as wellas working capital reviews(40%).New products – route toexpansionThe most popular revenueincreasing initiative islaunching new products(73%). Other routes toexpansion are enteringnew markets (42%) andplanning a merger oracquisition (24%). Thesurvey suggests that nowis a good time to growby acquisition with manyCEOs seeing value in themarketplace.Shift in customerspending – key growthstumblerIrish business leaders seethe greatest potential riskto growth prospects tobe the permanent shift inconsumer spending (68%).This is not surprising givenconsumers’ concertedsearch for value in anintensely competitiveenvironment. After thecrisis consumers willdemand an even higherlevel of value and qualityand will be prepared toshop around until they getit, a trend that is unlikely toreverse.Other key risks for growthare lack of available finance(53%) and over-regulation(50%). This highlightsbusinesses need for cashand possible concerns thatover-regulation may bringadditional administrativeburden and costs withoutdelivering additional value.“A quarter of CEOs are seeking a mergeror acquisition.”Chart 9:Potential barriers to growth (% of respondents)0 10 20 30 40 50 60 70 80PricewaterhouseCoopers Pulse 2010 10