Competitive horizon

Article Type: Competitive horizon From: Strategic Direction, Volume 24, Issue 9

The economy in Ireland

A review conducted by the Economic and Social Research Institute (ESRI) has predicted that annual economic growth in Ireland will average 3.75 percent over the next decade. The review predicts that worldwide credit crunch will impede growth over the next two years before a strong economic revival in 2010. Beyond that, annual growth of over 5 percent is forecast. Resurgent global economic activity will see stronger demand for Irish exports, with market services the chief beneficiary. Almost half of Ireland’s total exports are now service related and the ESRI predicts that this figure will rise to 70 percent by 2025. Growth is particularly strong within business and financial services and by this time the sectors are predicted to employ around 30 percent of the workforce as the transformation from a manufacturing to a service-driven economy continues. However, according to a report published by the Tehran Times (www.tehrantimes.com),unemployment is set to gradually rise before peaking at 6.9 percent in 2011, and then slowly falling to 5.3 percent by 2015.

Why data security fears prevail

The vast majority of companies fail to take adequate measures to protect themselves from internal and external attacks on their data, a report published by Business Day (www.businessday.co.za) claims. While many organizations remain ignorant of such security issues, others stand guilty of failing to take proper action. The report points out that growing sophistication among criminals demands that companies should ensure that technology is efficient, users are aware and risk management is properly implemented so that access can be monitored and controlled to combat potential intrusion. Investment into such systems is crucial and should not be deferred. The consequence of delaying action can be devastating, as research from the IT Compliance Institute suggests. The Institute revealed that 87 percent of companies admitted to experiencing a data violation, causing 74 percent to lose customers. Statistics show that organizations with effective IT security risk attack once in 42 years. On the other hand, there is a likelihood of being attacked on average every three years when such measures are not in place.

Continuity lacking in UK organizations

Only 47 percent of UK companies have established a business continuity plan(BCP), according to a survey carried out by the Chartered Management Institute(CMI). The figure has risen by just 2 percent since 2002 despite the risks to business increasing and becoming more diverse. The CMI believes that safeguarding business operations is essential, particularly in a climate of economic uncertainty or growing concerns about security. The survey, as reported by Clearlybusiness (www.clearlybusiness.com), indicated that public sector firms are more likely than private or voluntary organizations to have a BCP in place. Corporate governance was cited as the main reason for continuity planning by 60 percent of companies with measures in place and this figure reached 76 percent among plcs. Central government and customer demand were other significant factors to prompt action, while the survey also indicated that a higher number of auditors and insurers now want companies to develop BCPs.

Russian red tape set to lessen

Bureaucracy is impeding small and medium businesses entering the Russian market, a report published by Russia Today (www.russiatoday.ru) claims. At present, both domestic and international companies must complete significant amounts of paperwork before being permitted to trade. The problem is especially prevalent for food product imports, as companies must meet strict requirements relating to health permits, customs declarations and attestation of value. The process involves completing a substantial file weighing several kilos for each brand. Complex import regulations are a legacy of the Soviet certification system but food industry insiders believe that things will soon ease if Russia manages to join the World Trade Organization (WTO) later this year. With the WTO encouraging zero import taxes between members, it is predicted that current tariffs will fall significantly within the first few years of Russia’s membership.