Competitive horizon

Citation

(2014), "Competitive horizon", Strategic Direction, Vol. 30 No. 3. https://doi.org/10.1108/SD-02-2014-0023

Competitive horizon

Article Type: Competitive horizon From: Strategic Direction, Volume 30, Issue 3

Preparing for expansion

Any firm aiming to grow needs to ensure that the right foundations are in place, an article published by Growth Business (http://www.growthbusiness.co.uk) points out. The first issue is ensuring that the business plan is adequate enough to take the company forward. If expansion involves venturing into overseas markets, it is wise to seek help. One idea is to speak with customers, suppliers and other organizations with knowledge of exporting. Their advice could be invaluable. Identifying the additional resources required in terms of equipment, systems, and staff also demands serious attention. One example would be a need for foreign language skills and a revamped website if exporting. Expansion demands investment and the report emphasizes the importance of having guaranteed access to capital until profits are realized from the additional business. Awareness of risks is likewise imperative and it is recommended that firms carry out credit checks with new customers.

Non-GMO foods set for strong growth in some markets

Demand for non-genetically modified organism (NGO) food is set to increase annually by around 15 percent each year to 2017, a report published by http://www.foodnavigator.comclaims. By that time, such products will account for 14.5 percent of global food and beverage sales. Opposition to GMO foods in strongest in Europe and the United States and opportunity to grow the non-GMO market is thought strongest in these markets. However, the worldwide picture is less clear where demand for non-GMO products and compulsory labeling is concerned. For instance, GMO cop levels are increasing in nations like China, Russia and Brazil which implies a growing positivity towards the use of GMO crops. The report additionally points to lack of clarity surrounding the definition of GMO and how this serves to impede the development of a universal measure for labeling. An example of this is products classified as natural while simultaneously containing some GMO ingredients.

How shale gas risks can be minimized

A report from Public Health England (PHE) has identified potential issues with shale gas extraction, should the process be adopted in the UK. The report, as published by the Engineer (http://www.theengineer.co.uk), considers the possible effects at all extraction stages from chemicals and radioactive materials. Evidence from countries where shale gas is already produced indicates that contamination of groundwater as a result of hydraulic fracking is unlikely because the process occurs so deep underground. The only recognized danger is leakage on the surface or through boreholes. But with no significant onshore petroleum development initiatives occurring in the UK, the latter is deemed a remote possibility. Regulation of each aspect and effective management on-site is recommended by PHE as the way to limit health and environmental risks. The organization does, however, acknowledge future need to monitor the community impact of the new infrastructure and increased traffic.

Steady growth predicted for UK economy

Economic performance in the United Kingdom (UK) is set to climb steadily over the forthcoming years, according to forecasts by the Confederation of British Industry (CBI). The leading business lobbying organization (http://www.cbi.org.uk) has upwardly revised its figures and now predicts growth of 2.4 percent in 2014 and 2.6 percent in 2015. It expects return to growth in the Euro area and a wider global recovery as reasons to expect a favorable impact on exports and a positive net trade. There are also reasons to believe that the upturn will be fueled by improved performance in sectors in addition to the services, construction and manufacturing that have provided the impetus for recovery. A rise in business investment is anticipated over the next couple of years and beyond. In 2014, the figure will increase to 6.9 percent in 2014 and then to 5.1 percent the following year. Over the same period, the CBI forecasts that exports will grow by 3.6 and 5.1 percent respectively. Growth should additionally see a gradual fall in unemployment from a rate of 7.7 in 2013 to 7.3 percent in 2015.