Competitive horizons

Competitive horizons

Article Type: Competitive horizon From: Strategic Direction, Volume 32, Issue 2

Business jet sales expected to be lower in 2016

The latest annual survey carried out by Honeywell International Inc predicts a fall in demand for business jets in 2016. Purchases are expected to drop by up to 10 per cent, as corporations adopt a cautious approach in the face of various uncertainties in the global environment. Among the key issues are political sensitivities and the fragility of many economies. Stronger demand in Latin America and modest growth in China and Russia is not expected to compensate for weak sales in Europe, North America and Asia. In addition, some respondents admitted to delaying intended purchases for two years until new models with improved features are launched. Over 1,500 non-fractional corporate jet operators took part in the survey that prompted Honeywell to anticipate similar sales in 2017 before a return to stronger growth the following year. Looking further ahead, the company has downwardly revised its forecasts and now believes that the next decade will see worldwide demand for 9,200 business jets at a value of $270 billion. The previous figure cited was 9,450, http://www.reuters.com reports.

Ghana urged to diversify economy

Too great a dependence on gold, oil and cocoa makes Ghana’s economy vulnerable, a report published by http://www.allafrica.com claims. Price volatility associated with these key commodities is responsible for currency depreciation and resulting economic shocks. It is argued that a more broad-based economic system would offer protection against commodity price fluctuations. Lack of foreign exchange earnings is another reason for the negative impact which subsequently affects different sectors of the economy. The report advocates creating demand structures similar to those of other nations as a means of boosting trade. Businesses are advised to first satisfy domestic demand and then improve the standard of their offerings for the international stage. Engaging in regional sub-trades through such as supplying Nigeria with the salt it needs for oil production is seen as a possible way of stimulating greater export trade. Another key recommendation is to ensure coherent fiscal policies so that businesses can benefit from lower borrowing costs.

China set to lead way in use of renewable technologies

According to a report published by http://www.chinadaily.com, reforms implemented by China will take the country to the forefront of renewable technologies. The increasing importance of the sector has influenced decisions in China to proceed quickly to more advanced technologies, the report notes. It is anticipated that competition within the sector will intensify due to China’s emergence and help to accelerate the global shift to a greener economy. The nation’s growth to become driver of the world’s economy is cited as a key factor in its importance regarding renewable technologies. Key developments in this area include creation of internal systems to lower carbon emissions and assist in the conservation of vital resources. Investment in alternative energies is helping to increase economic growth through improved efficiency and availability of superior products at a lower price.

Why appropriate management of annual leave is important

Managing annual leave of employees can be critical in determining how a business performs, claims an article published by http://www.nab.com.au. Its impact is invariably even greater for smaller firms. Company owners might best face the often difficult challenge by being open about business demands and suggest that workers take some of their time off during quieter periods. But compromise is essential as well, and this can be demonstrated by permitting employees to book the rest of their leave when it best suits them. Effective communication and flexibility on both sides will help to resolve the issue and provide mutual benefits to both the firm and its workforce. The article also points out the importance of ensuring that individuals take their full holiday entitlement. Breaks from work positively impact on the physical and mental well-being of employees and help to reinvigorate them when they return.