MANAGING in the

NEW WORLD

Countries worldwide are grappling with finding a solution to climate change. Most are unsure on whether they will be able to match the targets set at the Paris Agreement of 2015 or not. This is true for both the industrial as well as developing countries. Some methods have been suggested by which industrialized nations could be weaned off carbon- producing energy processes. Renewable energy sources such as wind and solar power, need to be utilized to a greater extent to fulfill the power requirements. The biomass available will also need to be concentrated in the industrial sector. Low- emissions district heating needs to be used for the building sector. Electric mobility must become the norm in transportation. The investment required in all this would be sizeable. Germany can be a good example to study for others in Europe and North America. One major difference though between the USA and the European countries is the fact that while the latter is expected to see a population decline, the same will rise by about a fifth in the former. Developing countries such as India, Brazil, Russia and China will increasingly consume even more energy, due to the fast rate of growth they are experiencing. This study by the management consulting giant BCG confirms, that among the BRICS nations, it is only South Africa that has taken proactive steps to reduce its carbon emissions. Emissions trading too has hit a brick wall, with natural boundaries arising. Carbon trade schemes thus require a new paradigm.

Source:https://www.bcg.com/publications/2018/economic-case-combating-climate-change.aspx

Uploaded Date:27 June 2019

Among the several industries primed for change, one is the automotive. One such transformation is to be its electrification. Self- driving vehicles will also increasingly become the norm, with fleets expected to prosper by the year 2035. The sharing economy will thrive with more amount of mobility being shared among people. These mutually reinforcing changes will have major impacts on the sale of automobiles. Newer sources of profitability will also emerge with China a definite market now. While growth will continue to be experienced, the profitability will be driven by new mobility tech. The profit pools will rise dramatically from emerging means. Data warehousing will also get a further new lease of life, as the insights captured will now be inherently higher than previously. This will further boost the on- demand mobility. Top car makers like GM have already got themselves a toe hold into these means of growth. The infrastructure will also likewise need a lift, with more number of battery production and charging facilities.

Source:https://www.bcg.com/en-us/publications/2018/profit-tech-transforms-mobility.aspx

Uploaded Date:27 June 2019

Automation and Artificial Intelligence (AI) have already started to ring in the changes for employment practices, but more is to follow by 2030. Besides jobs, even skills and wages will be disproportionately affected. A study was conducted by the McKinsey Global Institute to pinpoint this trend, and the transitions now due. Several questions now need to be posed before we move ahead. One is what impact automation will have on work. Another is to understand the possible scenarios for employment growth. This will also impact on the talent recruitment trends. To add to this, will there at all be enough work in this future, is another matter of debate. There are several growth scenarios that could take place. It increasingly looks like whatever path this takes, inequality will be a component of it. This is because the digital age is all about winner takes all. The emerging economies will lead the way, with increased consumption. Populations are also ageing. Technology will thus be deployed accordingly. Due investments are needed in renewable energy and energy efficient technologies. Unpaid domestic work, possibly needs now to be linked to the market. Economies need to be prepared for extremely large, and painful work transitions.

Source:https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gained-what-the-future-of-work-will-mean-for-jobs-skills-and-wages

Uploaded Date:26 June 2019

When companies are on their path towards expansion, they often face hurdles during scaling up. This is because with growth, complexity increases. This complexity, also hinders growth. Fast- growing companies have this tendency to drift towards bureaucracy and slow decision- making. It leads to an incapacity in leveraging the opportunities available. As per business research conducted by Bain and Company, there exists an inverse proportionality between the scale achieved and the net benefits of size. This is why companies need to adopt the principle of micro- battles. This adoption will help the leadership in framing the learning, scaling and leading behaviors necessary to win over insurgency. It will also help ride over the frontline obsession that the founders may often be guilty of. Expanding companies often struggle to bridge the paradigm between routine and disruption. There is a dichotomy between what to prioritize between the short and long runs.

Source:https://www.bain.com/insights/micro-battles-and-the-journey-to-scale-insurgency/

Uploaded Date:22 June 2019

More than merely having better products, commercial companies are now relying more on superior execution, to remain on top of their game. Among the challenges that such companies are facing in the ongoing digital age is which data source to trust. Thus, organic in- house data warehousing, is of utmost importance to all such firms. While there may be differing approaches, some characteristics usually go well in a sound plan. To begin with, the discovery process needs to help align functions within a specific language and framework. Each of the commercial capabilities need to be mapped against specific results and outputs. These prioritized capabilities need to be in line with the corporate strategy designed. Brands need to engage influencers and business leaders so that the appeal reaches a critical mass. The firm must also ensure that the capability improvements should be quantifiable in measurable terms.

Source:https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/commercial-excellence-your-path-to-growth

Uploaded Date:15 June 2019

During Mergers and Acquisitions (M&A), value creation becomes a much- debated topic. It becomes a major challenge to integrate the corporate strategy of diverse cultures. For this, some actions have been identified, if well executed, can boost up the smooth turnarounds during such M & As. Increasing number of such M & As has become the common trend worldwide. This is one way for legacy companies to protect themselves against the onslaught of disruptive, digital- first companies. The need gets amplified in the current economic scenario. The geopolitical risks also currently at play will further weaken companies’ performance, forcing them to either transform or engage in even more of M & A activities.

Source:https://sloanreview.mit.edu/article/beat-the-odds-in-ma-turnarounds/

Uploaded Date:07 June 2019

The private equity market has been going strong for the last few years. The S&P 500 index for example went up by a fifth in the year 2017. The key trend has been the rise of megafunds, which may be defined as funds with a value of over five billion US dollars. This trend has been most common with buyouts, especially in the USA. Research conducted by management consulting giant McKinsey points to a growing share of capital among the industry leaders. This has led to the consolidation of a previously fragmented market. Scale is another aspect gaining traction among private equity investors. While such investments will keep flooding in, which industries and its players will it most attract towards remains a matter of debate, which only time will settle.

Source:https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/the-rise-and-rise-of-private-equity

Uploaded Date:07 June 2019

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