PrintStéphane Garelli
Professor at IMD, and Professor at the University of Lausanne,
Director of IMD World Competitiveness Center, Switzerland
The world economy is still global but it is not synchronized anymore. The cost of the “Great Recession” has been a fragmentation of the world economy: some countries are in recession, others are overheating; some nations risk inflation, while others risk deflation. In advanced economies, debt, public finance and the efficiency of government are the main causes for concern. The soft recovery has not prevented the social crisis, with disquieting unemployment rates and destabilizing consequences for societies. On the other hand, the emerging markets continue to create an economic block of their own, richer and more self-sufficient.
Consumers are also divided between those living in a slow-moving “replacement economy” – the US, Europe and Japan – where a purchase replaces an older product, and those in a buoyant “first-buy economy” – the emerging markets - where a purchase introduces a new product. Two consumer behaviors co-exist: “I want it” versus “I need it”. The new middle class in emerging markets will continue to be a growth engine for world demand. In parallel a new class of consumers - the emerging less poor – those who have just escaped from absolute poverty but who are not yet middle class, need products of their own: cheap cars, microfinance, mobile money, etc. Thus, companies will have to manage several business models in parallel.
Finally, changes in society will have deeper impact on corporations than changes in management: sustainable development, corporate governance, wellness, social networks, etc. They will impose a change in attitudes. Competitiveness will also be a question of mindset. Which management competencies and personal skills ensure success in this brave new world?
You will find a summary of some if the ideas highlighted under the tab " Presentations - then - abstract of presentation" as well as examples of supporting slides. Because the economic and business environment is particularly volatile, this material is regularly updated and adapted as circumstances evolve.