The Confederation of British Industry has today claimed that UK business models will be significantly different in the next decade owing to the changes the credit crunch has imposed upon supply chains, finance and HR.
The business organisation has launched a report, “The Shape of Business – The Next 10 Years”, which outlines four main areas of change.
The CBI finds:
- Different financing options will emerge as credit terms remain strained and firms look to avoid debt.
- More collaborative supplier relationships will be forged to guard against the ‘domino effect’ of supply chain failure.
- Sustainability and ethics will become more integrated into the business model.
- Firms will operate with a smaller core but more flexible workforce
The findings in the report are based on a survey of CEOs, CFOs and Chaimen of CBI members.
Said CBI Director-General, Richard Lambert: “What we now need is a more balanced, less risky pathway to growth – one in which the short-term returns may be lower, but the long-term rewards for management success will be a lot more sustainable and secure.
“There are important questions around how businesses are going to finance growth and investment in the future. And in a more collaborative, less transactional world, closer relationships with customers, suppliers, employees and shareholders look like becoming the new norm.”
The report is available at www.cbi.org.uk/shape-of-business.