How your business can attract and retain global investment

For businesses looking to strengthen their global trading position in these volatile times for British competitiveness, Ivan Menezes, CEO of Diageo, offered an “optimistic message of confidence in the UK’s economic future”.  
 
In Menezes’ view, Brexit is getting disproportionate attention in the discussion. Business wants and needs to see the UK leave with a deal and get over this impasse, but it is not the most critical aspect of the UK’s international future. What matters most is the “enduring strength of the economy” – and Menezes suggests that in order to look forward, we should first look back the UK’s monumental legacy. By embracing future opportunities inspired by past successes and the UK’s core economic strengths, we can firm up the UK’s position as a great place to do business. 

The UK’s three core economic strengths – and what your business can do to maximise them:

1) The British genius for innovation 

Menezes believes that, despite Brexit, the greatest changes of the future will be technological, not political. And those businesses that embrace that change will be the ones who succeed. “Technological innovation is the bread and butter of success,” says Menezes, “and we should not make the mistake of thinking that established sectors can’t also benefit from an innovative approach. Investment in R&D is an absolute priority.” 

However established your business and brands are, every firm can benefit from an innovation mindset. What does an innovation mindset mean in practical terms? It begins with having the capacity to think originally, and to focus singularly on your consumers and what they want – no matter your legacy. After all, as tastes and habits change, you’ll have to innovate in order to lead. Menezes shared an example from Diageo: the launch of Gordon’s Pink – a new spin on a classic product that has seen rapid growth. The vision and determination of passionate individuals to stay relevant and continually innovate is the key to commercial success. 

2) The talents of your people 

“Human capital is our most precious commodity,” Menezes comments, “we have a responsibility and an incentive to invest in it for the long term.” 
 
The rapid changes on technology will undoubtedly have an impact on jobs. Employees must be empowered to embrace that change through being trained to hold the skills of the future, expanding their knowledge to help them make new contributions. And a good place to start as a business is to provide opportunities to those whose strengths lay outside of traditional academia. Quality apprenticeships can really add value. And for the 800,000 young people who are not currently in employment, education or training, business must do more to intervene and break the vicious cycle that prevents them from taking their first step onto the career ladder. Unlock the opportunities within these young people by offering quality work placement opportunities.   

Recognising talent in all its diversity should be at the core of every business, because greater diversity drives better performance. On hiring inclusively, Menezes commented: “I want to lead an organisation that reflects modern society at all levels of the business. If you only hire the same people, you will only get the same results.” Expanding your business’ pool of talent will help boost competitiveness on the national and international stage, in addition to providing the proven benefits to innovation and productivity. 

3) Our global heritage and social responsibility 

The UK was the home of the very first industrial revolution. As the world embarks upon the fourth industrial revolution, British business must seize the chance to build on this heritage. “I am proud of the role that our predecessors of centuries past played in establishing global trade,” says Menezes, “we must be just as inspired by the entrepreneurs today who are driving this into the future. But we must take pride in doing this sustainably. Every firm has a responsibility to their consumers, to their community and to the international community. The bigger the firm, the bigger the responsibility.” 

Businesses must continue to drive each other forward by sharing best practice and taking our social responsibility seriously. The UK is already a world leader in many fields – our ambitious net-zero carbon target and high standards of workers rights, for example – and British business should think of these standards as great assets. “Our international competitors would give anything to have the legacy and position the UK has. We can compete globally from this position of strength, while still doing the right thing.” 

There is more work to be done, but if UK businesses can become global champions of best practice, we will invariably attract greater international attention. 

The role of business and government in partnership 

Business must do its part to attract global investment, but the government must also do what only it can do: support home-grown exports; welcome the best talent from around the world; provide a stable environment for business, and be a champion for free trade. Business will be government’s willing partner in these endeavours – and shared progress and prosperity will be our prize. 
 
As Menezes concludes: “the UK can be the best place to do business – today, tomorrow and for many years to come.”

Find out more 

Visit our Expanding Trade page in Ideas Forum to explore more ideas to help your business grow in international markets.