Tuesday, February 28th, 2012 - Roy Morgan Research
According to a new Roy Morgan Research study of Australian businesses, the majority (76%) reported last year’s business performance was influenced by the economy and associated level of demand, and 44% of businesses believe this factor will exert even greater influence on their performance in the coming year.
 
Data within the Roy Morgan Business Confidence and Outlook reports shows that although the ‘economy/ level of demand’ was cited by the highest proportion of businesses, many other factors were also noted. ‘Costs for raw materials, transportation etc’ and ‘changing consumer expectations & demands’ followed with 36% of businesses expecting each factor to have more influence in the next 12 months. Other influential factors included ‘business taxes and government charges’ (33%) and ‘government’ (33%). A total of fifteen factors were tracked in the study and can be found in the reports.


Top 10 Factors Expected to have Greater Influence on Australian Business in the next 12 Months


Source: Roy Morgan Research Jan 11 – Dec 11, n = 17,536.


Additional areas of the study examined growth strategies that businesses were likely to implement in the following 12 months. Not surprisingly, given the focus on the economy and level of demand, ‘internal efficiencies’ was the most favoured method among businesses of all sizes, albeit by greater proportions of larger businesses than small.


Micro Business - Growth Strategies Likely to be Implemented in Next 12 Months


Source: Roy Morgan Research Jan 11 – Dec 11, n = 11,497.


Small Business - Growth Strategies Likely to be Implemented in Next 12 Months


Source: Roy Morgan Research Jan 11 – Dec 11, n = 3,791.


Medium/Large Business - Growth Strategies Likely to be Implemented in Next 12 Months


Source: Roy Morgan Research Jan 11 – Dec 11, n = 2,248.


Norman Morris, Industry Communications Director, Roy Morgan Research, says:
 
“This new Roy Morgan survey reveals that many businesses are expecting the economy to play an increased role in business performance in the coming year. When looking at the results from a broader perspective, the overwhelming majority of all businesses expect the economy’s influence to either stay the same or increase over the coming 12 months, whereas only a tiny percentage expect the economy to have less influence. With this mindset it is not surprising that the single most often mentioned strategy is ‘internal efficiencies’, although business outlook and strategic perspective differs across industries even more than by business size.

“However, some businesses are looking for growth through new products and services, organic growth, and expansion into new geographic markets. Acquisitions and mergers are mentioned by 15% of medium and large companies, 11% of small companies and 4% of micro businesses.”

Roy Morgan’s Business Confidence and Outlook Reports – broken down into micro, small and medium/large size businesses, as well as industry segment – include a general profile, business confidence, performance in the last 12 months, and business outlook.

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Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Shaun Ellis
P: 03 9224 5332
W: www.roymorgan.com

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Australian business performance

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