International Business Report 2009 - Business planning: navigating the global downturn
International Business Report 2009 - Business planning: navigating the global downturn
The global downturn has dramatically affected privately held businesses (PHBs) around the world. Such businesses, including entrepreneurs, family businesses and non-listed entities are considered the lifeblood of the global economy.
This report examines the strategies that PHBs can use to make ‘big decisions’ to help survive the economic downturn in the longer term with the aid of good business planning. Innovation, cost cutting and pricing strategies emerge as the three most successful initiatives for boosting profitability. Each strategy is examined with practical advice provided for successful planning in such uncertain times.
Careful business planning has never been as important as it is today. It not only helps businesses articulate their strengths or unique value proposition to the market, but it also enables businesses to protect and stabilise themselves in the short term as well as charting a successful course for the future. PHBs may be tempted to ditch the business plan altogether, but we believe that short term survival and longer term revival go hand in hand.
The Grant Thornton International Business Report (IBR) 2009 provides a unique insight into the views and expectations of over 7,200 PHBs across 36 economies. This year’s research shows how PHBs have been hit hard by reduced demand for products and services and the lack of available credit which has resulted in a sharp decline in overall business confidence. The net balance of optimistic versus pessimistic PHBs about their economy over the coming 12 months stood at -16 per cent, a record negative level in the history of the Grant Thornton optimism/pessimism barometer.
Only the most nimble and well managed companies will successfully navigate this global downturn. Those businesses who successfully plan for the medium to long term will be the ones competing as market leaders in the years ahead.