Competitive horizon
Article Type: Competitive horizon From: Strategic Direction, Volume 30, Issue 1
Switzerland still world leader for competitiveness
The 2013-2014 Global Competitiveness Report shows that Switzerland retains top position for the fifth year running. Singapore and Finland fill the next two places in a top three that is unchanged from the preceding report. As revealed by http://www.dawn.com among others, Germany and the USA respectively climb to places to complete the leading five nations. In the latter case, the rise halts a slide which has occurred over the last four years. Hong Kong and Japan are other climbers within the top ten, which reveals falls for The Netherlands, Sweden and the UK. China is ranked 29 and remains the top performer among the five BRIC nations, of which Russia is the only one to improve its position. It climbs three places to 64, while Brazils ranking of 56 represents a fall of eight places. Qatar is the leader among nations in the Middle East and North Africa. In sub-Saharan Africa, previous leader South Africa has been overtaken by Mauritius, now ranked at 45. The World Economic Forum compiles its annual ratings using a dozen categories focusing on such as infrastructure, macroeconomic environment, institutions, education and training, health, innovativeness, business sophistication, technological capability, market size and efficiency of the labor market.
Food manufacturers set to face water challenge
According to an article published by Food Navigator (http://www.foodnavigator.com), organizations might soon have to focus on lowering water consumption in the same way that business has addressed its carbon footprint. This challenge is especially pertinent to companies operating in the food and drink industry. The report suggests that competition for water could intensify further, particularly in regions prone to scarcity. It is recommended that firms consider the issue in relation to their entire supply chain, focusing on consumption, pollution-related and economic concerns. Pressure on businesses is set to intensify from increased competition for supplies and growing consumer demand for sustainable business practices.
The importance of organizational culture
An article published by the Online Business Advisor (http://www.onlinebusadv.com) claims that firms can differentiate themselves from competitors through their organizational culture. Companies typically focus mostly on areas such as branding and marketing and give minimal consideration to this critical aspect. The report strongly recommends that any organizations strategic plan should make the creation of a unique culture a top priority. Business strength will increase if this task is properly executed. A shared goal of delivering excellent service to customers is a key aspect of culture, as is the belief in accountability across the organization. Firms should also impress upon employees the need to work together, care, perform to a consistently high standard and put organizational goals ahead of their own agendas. Understanding of key business objectives is furthered when they are defined clearly in the strategic plan. Implementing culture demands persistence on the firms part but desired behaviors will emerge and eventually become habitual. The resulting positive impact on performance means that gaining a competitive edge is more likely.
Why businesses should review the reviews
Customers who post online reviews of companies and their products are becoming increasingly influential, according to the Daily Telegraph (http://www.dailytelegraph.com.au). Since people use these reviews as part of their purchase decision making, businesses need to remain alert as to what customers say about them. Such vigilance is even more necessary where smaller businesses are concerned. Reputations are at stake and the report emphasizes the need to take a proactive approach. When customers are satisfied, this means encouraging them to share their sentiments online. Positive feedback serves as a powerful marketing tool for the business and helps raise interest among other potential customers. Effective management is equally important when reviews are less favorable. Firms should always respond sincerely and without being defensive. Behaving otherwise only increases negative perceptions. An apology is essential as it demonstrates that the organization cares. Firms are urged not to take criticism to heart but to consider it as an opportunity to learn and improve. Adopting this attitude can appease unhappy customers and also make a good impression on others.
