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CEOs see downturn as major threat to business growth
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The shift from the perception of over-regulation as the primary risk to business as the implications and effects of globalisation continue are changing the nature of global chief executive officers (CEOs) concerns.
A new report by PricewaterhouseCoopers (PWC) has underscored the usefulness in establishing a business network in today’s environment.
The report explores ways CEOs seek to balance the risks and opportunities of competing and collaborating in the face of enormous uncertainty and change.
It also provides personal views expressed by individual CEOs, giving their perspective on how their organisations are rising to the challenges and opportunities created by unprecedented change.
Company chiefs have cited a potential economic downturn as a top threat to their business growth prospects. Other major threats they listed are a shortage of key labour skills and over-regulation.
Until now, CEOs had rated over-regulation as the primary risk to their business, believing that the benefits of establishing business networks outweigh the costs.
To examine the dynamics of cause and effects in the connected world, business confidence, mergers and acquisitions, global risks, and climate change were examined in the report.
On the impact of business models, the report looked at people and change as well as collaborative business networks and regulations.
Clearly reflected are the impact of the recent global credit crunch and resulting heightened risk of recession on business confidence.
According to the report, CEOs’ level of confidence about business outlook declined for the first time since 2003 with fears of global downturn emerging as the number one threat to growth.
Accordingly, it stated that the prospect of a recession was the only growth risk to increase in concern among CEOs.
Notably, the report said that risk factors including energy and natural resources supplies, global climate change, and terrorism declined as business threats compared to the previous year’s survey.
The report notably revealed a deep regional difference in business confidence.
For instance, the decline in business confidence was most pronounced in North America, while the confidence among Western European CEOs also declined.
In contrast, CEO confidence showed marked increase in the surging economies of Asia Pacific, Latin America and Central and Eastern Europe, rising to about 55 percent in each of these regions.
The report stated: “The burgeoning confidence is spearheaded by China and India where 73 percent and 90 percent of CEOs, respectively, professed themselves to be ‘very confident’ about the prospects for growth in the next 12 months.”
evaluating what lies behind the divergence in confidence levels of CEOs around the world, the findings suggest that the combined effect of the credit crunch, rising energy prices, political uncertainty and the slowdown in the western economies means the threat of recession looms especially large for CEOs in the established economies of United States and Western Europe.
Meanwhile, the global split in confidence levels suggests that the coming 12 months will for the first time demonstrate whether the global economy can continue to expand without significant contributions from the traditional growth engines of the west.
A new report by PricewaterhouseCoopers (PWC) has underscored the usefulness in establishing a business network in today’s environment.
The report explores ways CEOs seek to balance the risks and opportunities of competing and collaborating in the face of enormous uncertainty and change.
It also provides personal views expressed by individual CEOs, giving their perspective on how their organisations are rising to the challenges and opportunities created by unprecedented change.
Company chiefs have cited a potential economic downturn as a top threat to their business growth prospects. Other major threats they listed are a shortage of key labour skills and over-regulation.
Until now, CEOs had rated over-regulation as the primary risk to their business, believing that the benefits of establishing business networks outweigh the costs.
To examine the dynamics of cause and effects in the connected world, business confidence, mergers and acquisitions, global risks, and climate change were examined in the report.
On the impact of business models, the report looked at people and change as well as collaborative business networks and regulations.
Clearly reflected are the impact of the recent global credit crunch and resulting heightened risk of recession on business confidence.
According to the report, CEOs’ level of confidence about business outlook declined for the first time since 2003 with fears of global downturn emerging as the number one threat to growth.
Accordingly, it stated that the prospect of a recession was the only growth risk to increase in concern among CEOs.
Notably, the report said that risk factors including energy and natural resources supplies, global climate change, and terrorism declined as business threats compared to the previous year’s survey.
The report notably revealed a deep regional difference in business confidence.
For instance, the decline in business confidence was most pronounced in North America, while the confidence among Western European CEOs also declined.
In contrast, CEO confidence showed marked increase in the surging economies of Asia Pacific, Latin America and Central and Eastern Europe, rising to about 55 percent in each of these regions.
The report stated: “The burgeoning confidence is spearheaded by China and India where 73 percent and 90 percent of CEOs, respectively, professed themselves to be ‘very confident’ about the prospects for growth in the next 12 months.”
evaluating what lies behind the divergence in confidence levels of CEOs around the world, the findings suggest that the combined effect of the credit crunch, rising energy prices, political uncertainty and the slowdown in the western economies means the threat of recession looms especially large for CEOs in the established economies of United States and Western Europe.
Meanwhile, the global split in confidence levels suggests that the coming 12 months will for the first time demonstrate whether the global economy can continue to expand without significant contributions from the traditional growth engines of the west.
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