central south report 11


to protect local market share. Business growth strategies need to be built around a global vision where quality, pricing, service, distribution, must be competitive but also custom-tailored to meet local requirements and market conditions. Technological developments have made that process considerably easier and less expensive.


But before businesses embark on an international expansion they need to consider not only tangible barriers such as regulatory and currency implications, but also softer cultural barriers, including local business customs, work patterns, and buying decisions and behaviours.


Business growth strategies need to be built around a global vision where quality, pricing, service, distribution, must be competitive but also custom-tailored to meet local requirements and market conditions


Sustainability


Sustainability is a complex subject that represents an exciting opportunity for some businesses but for others can feel like a real risk. There are changing client expectations and market demands, rising energy and commodity prices and an increasing range of regulation including the prospect of mandatory carbon reporting for listed companies. What‘s more, many businesses across the region are finding that issues, previously seen as mid-term concerns, are impacting profit and loss in the here and now.


We are in a period of transition towards a world of lower-carbon, resource-efficient goods and services -and in our region a highly creative and innovative clean technology and renewable energy sector has begun to mature. Centred on hubs of innovation in places like Southampton, and drawing on existing industries, the new sector is working to provide ideas and products to satisfy the emerging demands of this new consumer and corporate hunger. It is attracting investment and creating opportunities for skilled employment. With its combination of university research, marine engineering expertise and a vibrant professional services community, the Central South is one of the most important growth markets for the UK clean technology and renewable energy sector.


For other sectors, there are concerns that issues associated with energy, waste, carbon reporting, supply chain and producer obligations could introduce both cost and uncertainty.


But a pragmatic focus on sustainability can provide a catalyst for cost efficiency, innovation and growth for many businesses. The key to successfully unlocking the potential lies in understanding which part of the broad sustainability agenda is relevant to your business, then addressing and implementing it efficiently and cost effectively.


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – OCTOBER 2012


that companies in the Central South have confidence in the strength of their own competitive positions and have articulated clear strategies to mitigate these risks. Boards are notably balancing their time considering short-term risks – which enable them to keep a tight rein on the business operationally – with longer-term issues.


Looking forward Malcolm Thixton Risk in difficult times


The fallout from the banking crisis and overall downturn in the world economy has concentrated the minds of regulators, shareholders and boards on risk management. Recognition that even major financial institutions understood neither the risks they were facing nor the consequences of those risks, has focused attention on the corporate governance agenda.


It is a board‘s role to ensure risks within the business are being managed – be it a listed company or SME. Without an understanding of the risks faced, and appropriate strategies in place to mitigate them, businesses face not only reputational and financial consequences but missed opportunities. Good risk management gives boards the information and process they need to weigh pros and cons and make better decisions. So what are companies most concerned about? Two risks have been rising up the agenda in the past year.


The first is compliance, specifically adherence to laws and regulation. The complexities of doing business overseas provides challenges to companies, whatever their size, particularly when they are operating in highly regulated territories where the prospect of political intervention may seriously impact the ability to do business and coupled with industry-specific legislation.


Without an understanding of the risks faced, and appropriate strategies in place to mitigate them, businesses face not only reputational and financial consequences but missed opportunities


Competition is the second growth risk area, and ranges from the threat posed by product innovations to the increased competitiveness of UK and overseas firms. It is clear though,


www.businessmag.co.uk


The uncertain fate of the eurozone continues to weigh heavily. Although the consequences of any break-up are still a matter of conjecture, there can be little doubt that banks, still in the process of rebuilding their balance sheets, will come under further pressure. This is unlikely to help businesses secure the capital they need to grow, or to improve the already bleak picture for the UK and global economy. The LIBOR fixing scandal may have receded from the newspaper headlines but it could yet prove costly. If it weakens the City‘s position as the world‘s foremost financial centre then the country‘s wealth and world standing could be at risk.


With no end in sight to the economic uncertainty the need to win market share by staying one step ahead of the competition will become ever more important. Whether this is through innovation, improving efficiency or continuing to invest while others are wary, will depend on the individual business. But as Thixton concludes: “Central South companies have demonstrated great resolve in the past year and there is every reason to believe they will do so in the future. For those who ‘mind the gap‘, growth may still be firmly on the agenda.“


To read the full report visit: www.bdo.co.uk/centralsouth2012


Details: Cheryl Martin Sales & client services manager 023-8088-1754


BDO‘s Southampton office has eight partners and 160 staff offering a full range of business services to a broad client base ranging from smaller SMEs to significant privately-owned and listed businesses. It has one of the largest team of tax specialists and the leading corporate finance team in the area.


BDO LLP is the UK member firm of BDO International, the world‘s fifth-largest accountancy network. The sixth largest national firm of accountants, it has over 206 partners working with over 2,600 staff in 15 offices across the country.


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