Competitive horizon
The government in Malaysia predicts that the country’s economy will grow by 6 percent in 2007 and between 6 and 6.5 percent the following year. A Finance Ministry report claims that economic expansion in 2008 will continue to be broad based, with consumer spending, export growth and higher global demand for commodities such as oil, gas and palm oil leading the way. According to a report published by Business Week (www.businessweek.com),the government also plans to stimulate an increase in private investment by reducing corporate tax from its current level of 27 percent. The rate is set to fall to 26 percent in 2008 and by another 1 percent the year after. Growth in company earnings is expected to offset the revenue lost from these cuts. While no domestic threats to the economy are anticipated, the potential fallout from the US sub-prime mortgage market remains a concern.
Growth in online shopping set to slow
Various surveys have indicated that online retailers will find it increasingly difficult to attract new customers over the next decade or so. Forrester Research predicts that online sales in the US will at that point be more than double the $132 billion recorded in 2006. However, analysts predict that this growth will be mainly driven by an increase in online activity from people who already engage in internet shopping. According to Jupiter Research, growth in online shopping will fall below 10 percent by the end of the decade before leveling out some time after that. Although it is expected that online sales will continue to account for only 9 percent of total retail sales,potential for growth still exists. A report published by MSNBC (www.MSNBC.com) points out that online retailers can do much more to entice customers, particularly in areas such as clothes,cosmetics and home products. Providing more in-depth product detail, accurate measurements and up-to-date information about availability are just some of the simple steps that would improve the online shopping experience. The report also claims that there is considerable scope to expand the online grocery market by targeting affluent people with heavy demands on their time. Better integration of in-store and online channels is felt to provide further means of securing a competitive edge.
IT breakdown fear for UK businesses
A survey carried out by research organization Vanson Bourne has revealed many small to medium sized companies (SMEs) in the UK consider information technology failure as their main frustration. Around a third of the respondents pointed to IT security as the most significant work problem, while a similar number complained about the effects of persistence technology troubles. The cost of technology and poor understanding of employees in their use of IT were other concerns revealed in the survey, as published by Growth Business(www.growthbusiness.co.uk). The survey indicated that most owners and managers of SMEs wanted reliable, cost effective IT systems and were less concerned about newer concepts like Web 2.0, mobile working and open-source software.
Training needed to combat Indian pilot shortage
A report published by Domain B (www.domain-b.com)warns that India’s aviation industry needs to improve its training. The next five to ten years may see existing fleets increase by more than 800 new aircrafts and it is also estimated that around 40,000 new cabin crew will be required during this time. Airlines and related industry bodies currently acquire staff from competitors or hire from abroad rather than invest in training schemes. Commercial pilots are in short supply and airlines currently hire foreign pilots from West Asia and Eastern Europe. However, experts believe this to be an unsatisfactory response to a situation that will worsen as the industry grows. While awareness of the situation appears to be increasing, the report points to the minimum requirements of pilot training in order to illustrate that the problems will not disappear overnight. There is evidence of private institutions offering training programs for pilots but most of these are expensive. Instead, it is suggested that a joint initiative between airlines themselves would allow more cost effective training of pilots and cabin crew. The report also believes that reintroduction of government flying schools and the creation of a flying university with the capacity to train for all kinds of jobs in the aviation sector may be other options to consider.
