Investor Today

News Story

Blinkered boardrooms convinced there will be return to pre-recession normality

Monday 22nd February 2010

By Mike Jones

Almost half (44%) of board members think there will be a return to pre-recession normality and that their business will not fundamentally change in the next five years, according to a poll from business advisors and accounts BDO LLP.

The poll came as BDO released a definitive and powerful study involving an expert panel convened by BDO and academics at the Centre for Future Studies. The report provides a stark warning to companies that the operating environment for businesses will never return to pre-recession normality and that a period of precariousness and weak growth could continue until 2015.

Despite the report warning that businesses need to transform themselves to adapt to a new world order that will emerge as economic performance improves, many executives clearly think that there will be a return to business normality in the next two years. However, the report demonstrates that the world is changing, and there’s a need for UK businesses to reinvent themselves if they are to survive.

Peter Hemington, Partner, BDO LLP said: "The global economy has become unnaturally skewed through the rise of India and China leading to the Great Recession of 2008/09.

"Although this recession may be over - we hope – the consequences still remain. As a result, the economic environment will remain tough for some time to come. Linked to this, we are going through a period of profound societal and technological change which will mean that some business models will wither away and die, while others will thrive and grow. Businesses need to think carefully about how the world is changing and reinvent themselves to make sure they survive and thrive in the new environment."

Have your say on this story using the comment section below