The business environment of the next decade will be significantly different to what might have been expected just two years ago. The financial crisis and the recession that has followed have altered operating conditions by imposing new challenges and exacerbating existing ones. Businesses will respond across the organisation, moving to a more flexible, collaborative and leaner model.
Over the next five to ten years, businesses will face major changes to finance and capital conditions. Finance will be more expensive and its availability will be constrained by regulation and changes to the banking market. From an era in which finance was cheap and readily available, these changes will be a significant driver of adjustments to corporate finance models and investment behaviour. Businesses will also need to adjust to a less benign economic backdrop. The next decade will almost certainly be characterised by a higher level of economic volatility and increased risk – clouding the certainty required for long-term planning.
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