Competitive horizon

Citation

(2013), "Competitive horizon", Strategic Direction, Vol. 29 No. 9. https://doi.org/10.1108/sd.2013.05629iaa.001

Competitive horizon

Article Type: Competitive horizon From: Strategic Direction, Volume 29, Issue 9

Sweet outlook for sugar

According to a report by Rabobank, global sugar consumption will rise to 203 million tons in raw value by the end of the decade. The financial services provider claims that emerging markets will be responsible for much of the extra demand. Growth is predicted to be 3.4 percent in Africa, 2.9 percent in Asia and 2.1 percent in South America. Increases in population and income levels are cited as key determinants of the rising consumption anticipated. The move towards urbanization in these markets is likewise a factor that can alter dietary habits. As reported by www.foodnavigator.com, the demand is set to trigger strong increases in sugar production in China, Thailand and Australia. Similar trends are expected for African manufacturers. Rabobank also believes that increases in consumption will see greater production activity in nations more renowned for importing. Russia is a prime example and increased output there could lead to a slight fall in EU imports overall. Asia is set to remain the largest importer, although South America will account for a greater share. This is attributed to the inability of local manufacturers to retain pace with demand. Current top exporters Brazil, Thailand and Australia are set to retain the leading positions.

Accelerated growth predicted for African economy

Increased production in agriculture, oil and mining, combined with strong growth in services are cited as key factors in expanding the economy in Africa over the next two years. The latest African Economic Outlook by the African Development Bank also expects resurgence in foreign direct investment. This year will see gross domestic product (GDP) increase to 4.5 percent in 2013, rising to 5.2 percent the following year. A report published by www.iol.co.za points out that rises in commodity output and domestic demand will help spur growth. A slowdown in China and further possible economic problems in the EU can be offset by these factors, the report claims. Expansion will be strongest in West Africa as South Africa’s labored recovery will impede performance in the south of the continent. Similarly, Libya’s oil production will not prevent weaker growth in North Africa as the region continues its shift towards democracy. The bank advises nations in the region to set monetary policies which support economic growth while also helping to control inflation.

Media in China set to expand over next five years

A PricewaterhouseCoopers report expects annual compound growth of 12 percent for China’s media and entertainment market to 2017. By that time, the industry will be worth $203 billion. Yearly spending on advertising is expected to rise by 12.4 percent over this period to reach $55.7 billion. The report, as published by China Daily (www.china.org), points out that internet advertising will be a considerable factor in the predicted growth. In 2017, it could account for almost half of all expenditure. Such advertising contributes 32 percent at present. Predicted annual compound growth of 21.5 percent will be the largest of the 11 sectors studied in the report. Advertising revenue from newspapers is set for the lowest increase of 4.4 percent. Spending on entertainment and media by Chinese consumers could reach £67.8 billion at a time when China is predicted to become the world’s third largest consumer market.

Employee engagement and workplace creativity

Workers who are highly motivated and engaged can make their organization more productive, a report published by Growth Business (www.growthbusiness.co.uk) asserts. Such individuals are also likely to be content in their work, making employee retention much easier. The report likewise suggests that a strong connection exists between employee engagement and company innovativeness. On the contrary, creative output is invariably much lower when workers feel disconnected with their firm. Organizations aiming to improve engagement can introduce measures like behavioral training and also give workers more input with decision making. In addition to empowering employees in such ways, it pays off to show them their efforts are valued. Gestures that might include monthly and annual awards make people feel they are appreciated members of the firm. Initiatives like this can help foster shared goals, a sense of togetherness and greater care and commitment towards the firm.