The 10 Trends You Have to Watch

Harvard Business Review, Aug 09
Executives are beginning to look to the future after spending a full year in crisis mode. As they reengage in strategic thinking, they will need to continually assess the changing economic landscape—and they can effectively do that by keeping a close watch on the underlying forces outlined in this article.
1.Globalization is under fire - a declining trend
Increased protectionism and reduce global trade are reducing the global flow of people, goods and services – according to McKinsey.
2.Resources Feeling the Strain - a stable trend
While resource and commodity prices pulled back during the recession, the fundamental forces driving these prices have not changed.
3.Trust in Business is Running Out - an accelerating trend
The recession, its root causes and other factors have eroded consumer and public trust in businesses which raises the cost and lowers the brand value.
4.A Bigger Role for Government - an accelerating trend
Governments have played a significant role in stimuluating the recovery and re-regulating industries. Do not expect them to shrink back from these roles.
5.Management as a Science - a stable trend
Information and decision support technologies will continue to transform management and prevent the ‘decisions’ that led to the financial crisis.
6.Shifting Consumption Patterns - an accelerating trend
Consumption patterns are shifting as U.S. consumers pullback in the face of recession and debt in favor of Asia countries and older consumers.
7.Asia Rising - a stable trend
Asian economies continue to rise in importance and growth as both a supplier and consumer. They will become about a quarter of the world economy dominated by India and China.
8.Industries Taking New Shape - an accelerating trend
Industries are changing in the face of the recession that widens the gap between strong and weak rivals and continued disaggregation of industry structures. This requires a two tier strategy: seize immediate opportunities created by the recession and look for ways to redefine the industry in your favor.
9.Innovation Marches On - a stable trend
Resist the initial desire to cut back on R&D in the face of tough economic times. Rather continue investment, even through operational cuts, as innovation separates companies when the economy comes out of the recession.
Price Stability in Question - an accelerating trend
Economic forces are at play with a high probability of changing price stability either leading to inflation or deflation.

------------------------------------------------------------------------------------------
Business Leaders Digest
Information You Can Use. Knowledge You Can Trust
This summary is taken from Business Leaders Digest monthly. The purpose of BLD is to offer strategic insights, how-to articles, thought leadership pieces and other information to help you and your colleagues become more effective. Summaries from global top 100 business & management magazines, newspapers, websites & reports are published monthly in Business Leaders Digest which can be subscribed at a modest annual subscription of Indian Rs.900 only and US$50 overseas. To subscribe or receive a sample issue, email at busleadersdigest@gmail.com