Page 2 introduction businesses in all industries and

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Unformatted text preview: ection. Page 2 Introduction Businesses in all industries and countries are facing increasingly complex, uncertain, volatile and competitive market conditions as globalisation, macro-economic conditions and new technologies combine to shake the marketplace to its foundations. In a recent survey of CEOs, the following reflects their views of changing conditions: The New Economic Environment 13% 18% More volatile 69% Deeper/faster cycles, more risk 14% 21% More uncertain 65% Less predictable 18% 22% More complex 60% Multi‐faceted, interconnected 26% 21% Structurally different 53% Sustained change Not at all/to a limited extent To some extent To a large/very large extent Source: IBM Global CEO Study 2010 Figure 1: How CEOs view changing market conditions These changing conditions lead to a number of important imperatives that are driving the strategy of many companies today. Most businesses, for example, attach great importance to focusing on the customer, in order to keep existing customers on board and hopefully attract new ones. Business agility is another clear aim, with the unpredictability, increased competition and structural changes driving a need to respond to change quickly and effectively. A particularly topical imperative given recent world events is that increasingly risky and uncertain conditions make controlling costs even more important than usual, to preserve profitability and increase company robustness. But overriding all of these is the need for effective governance and auditability, to ensure that the company is managing risk appropriately, controlling operational execution and adhering to regulatory and corporate policy. Focus on customer service: volatile and uncertain conditions together with increased globalization and competition place even greater emphasis on customer retention and the need to attract new business Business agility: The changing conditions depicted above lead to a need for business to respond to new opportunities quickly and effectively so that market share can be increased and prof...
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This note was uploaded on 01/29/2014 for the course ACC 230 taught by Professor Xia during the Winter '13 term at Bloomsburg.

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