United Kingdom
New Economic World Order: A multipolar world emerges - Peter Hemington
Since World War II, we have grown accustomed to a world economic order in which the United States has had by far the biggest influence. But this is changing; a multipolar world order is evolving, with profound implications for all of us involved in business in the UK. The credit crunch and the ensuing economic maelstrom have had the effect of speeding up the process of change.
Unlike many observers, at BDO we’re optimistic. Changes in the world order and its foundations do not necessarily mean a poorer UK or a decrease in opportunity for our clients. We’re convinced that changes over the next fifty years will generate many business opportunities.
But to take advantage we will need to be alert to the new order and prepared to challenge existing thinking – at all levels, internationally, nationally and regionally; at the level of the markets and industries in which we operate, and in our own board rooms.
Transitions – The New Economic World Order, outlines the opportunities open to the UK in the new economic world order. The in depth study notes that as well as manufacturing sectors like defence and pharmaceuticals, the UK also has world beating financial services, education, leisure and retail sectors which provide platforms for strong growth. However this can only be a reality if UK companies adapt to the new world order and exploit emerging markets.
Despite this, although George Osborne has promised tax support for manufacturing, government loans earmarked for industry are being reviewed. In addition, many executives are limited in their outlook, yet to prepare for the changing global landscape. 85% of UK board members admitted they are not actively preparing for competition from the Next 11 countries that will become economic powerhouses over the coming five years, according to a new poll commissioned by BDO.
If you are considering expanding your business into the new world order, you may want to start by asking yourself some of these questions:
- Have you considered how the world economic landscape is changing and what affect that might have on their future business plans?
- Have you considered how to take advantage, and conversely how to minimise the threats, of these changes?
- Do you have a strategy for their business to compete in these market places?
- How effectively can you demonstrate your unique selling points in these economies?
- Have you considered the implications for staffing arrangements, supply chains, customers and competition?
This study is the first of a series of reports, called Transitions, that sets out a definitive view of the trends that will shape the business world for the next decade.