Competitive horizon

Citation

(2013), "Competitive horizon", Strategic Direction, Vol. 29 No. 2. https://doi.org/10.1108/sd.2013.05629baa.001

Competitive horizon

Article Type: Competitive horizon From: Strategic Direction, Volume 29, Issue 2

Slower global economic growth anticipated

The International Monetary Fund (IMF) has cut its forecasts for worldwide economic growth in 2013. Previously, the organization had predicted growth of 3.9 percent but has now revised this figure downwards to 3.6 percent. The prospect of growth falling to under 2 percent is considered a one-in-six possibility. In its latest World Outlook Report, the IMF points out that prospects will depend on whether the slowdown is an expected blip during recovery or a more enduring problem. As reported by Bloomberg (www.Bloomberg.com), it warns that more sluggish expansion could result unless policy makers in Europe and the USA quickly address serious short-term economic issues. European officials are urged towards stronger monetary integration, while averting planned increases to tax and reductions in spending is recommended for their US counterparts. The report claims that such measures can help improve confidence in the global financial system and encourage bank lending and lower risk aversion.

Oil boom anticipated for Iraq

According to a report published by the Financial Times (www.ft.com), Iraq is poised to overtake Iran and Venezuela and become the world’s second largest oil producer over the next few decades. By the 2030s, only Saudi Arabia will have a more prominent position within the Organization of the Petroleum Exporting Countries (OPEC). The report also claims that Iraq will account for 45 percent of global growth in oil supply predicted to occur by the end of the current decade. A study carried out by the International Energy Agency (IEA) forecasts a doubling of exports by this time and an annual average of $220 billion in oil revenues by 2035. It is expected that 80 percent of exports will be to Asia, and China in particular. Growth in Iraq’s oil industry has been affected by conflict and international sanctions but leading companies are now increasing production in the nation’s oilfields. The report does warn, however, that disagreements over oil rights between different Iraqi factions may impact on growth levels if not resolved.

EU sets agenda for nuclear safety improvements

Tests carried out across the European Union (EU) have revealed some concerns over the safety of nuclear power stations, a report published by www.eubusiness.com points out. The results highlight the need for widespread safety upgrades across the EU that are to be implemented at an estimated cost of between 10 billion and 25 billion Euros. Although no immediate closures were recommended, the report did highlight the questionable safety standards of many of the region’s 132 reactors. Given this need for improvements, the EU Energy Commissioner has urged governments to focus on swift action. Rule tightening and compulsory civil liability insurance were among other recommendations made. The tests investigated how nuclear plants were equipped to cope in the events of disasters like earthquakes, floods and airline accidents. Results varied across different countries and indicated problems with equipment, systems and risk calculation. A review is planned for 2014 to ascertain what measures have been taken.

Why sorry doesn’t need to be the hardest word

No company gets it right all the time. Mistakes are inevitable. But how errors are dealt with is highly important, the New Zealand Herald (www.nzherald.co.nz) reports. Many firms seemingly fail to appreciate this though and do not recognize that apologizing is essential if relations are to be preserved. Evidence suggests that saying sorry to a customer can have a positive outcome where continued loyalty is concerned. On the other hand, ignoring a complaint invariably results in lost business and the damaging consequences of negative word-of-mouth publicity. Offering an apology shows that the customer matters and that the organization is listening and treating their complaint seriously. The company should also accept responsibility for its failures and not try to make excuses or deflect the blame elsewhere. Honesty is likewise vital, along with an indication of regret and clear commitment to change.