Steering a new course in unchartered waters
With credit getting tighter, companies are going to have to change the way they do business and manage their cash. Laurence Danon, executive board member of Edmond de Rothschild Corporate Finance in France, says we are likely to see companies implementing huge cost-savings plans, probably with significant layoffs and dramatic changes to capital expenditure and development programmes.
US economy may plunge into depression if banking sector bailout fails
The US economy may plunge into a depression if the $700 billion rescue package fails to revive the ailing banking sector, says Ilian Mihov, INSEAD Professor of Economics.
“The Great Depression (this time) is still unlikely but it is not impossible anymore. This is quite sad,” Mihov says.
The China Syndrome: understanding the Chinese economy
China’s economy is booming and many multinational companies are looking to tap the Asian giant’s potential. However, according to Peter Bowie, CEO of Deloitte China, foreigners wanting to do business with the Chinese appear to be ill prepared because their pre-conceived notions about China are simply outdated.
Asia feels the pain caused by the crisis but could be poised for rapid recovery
Asia can’t escape the financial and economic crisis that is battering the rest of the world, but the region may be poised for a more rapid recovery if leaders in business and government work together and show leadership.
Sustainability: a business opportunity
By the year 2040, only 15 per cent of the world's population will be living in what are now called developed countries. It's therefore essential for today's business planners to start focusing on the rest of the planet. Fortunately a strategy centred on emerging markets can be both financially profitable and socially responsible, says Barbara Kux of the Dutch multinational Royal Philips Electronics.
"Developing countries are a fantastic source of opportunities for companies," says Kux,
Engaging with Africa: Can business leaders afford to ignore this continent?
After years of stagnation, Africa is finally experiencing economic growth. Are there opportunities in Africa which are not being recognised by the business community outside of Africa?
Targetting Africa: The case for investment
Africa is so diverse, with its variety of countries and resources, that almost any type of business in the world could take advantage of the continents economic growth. That was the view of panellists at the INSEAD Leadership Summit 2008.
Simon Harford, West Africa head for private equity group Actis and INSEAD alumnus (94D) says virtually any business that can talk to the consumer base of Africa is already growing at remarkable rates, 30 to 60 per cent year on year.
Europe as a power: Financial and economic challenges ahead
There has been so much 'hype' about the rise of the BRIC countries - Brazil, Russia, India and China - that one begins to wonder about Europe's relevance as an economic power. 'Is the European economy as relevant as it once was?' asks Alice Rivlin of The Brookings Institution.
Is it over yet? Businessmen offer recession insight
These are indeed times that try men’s (and women’s) souls. But the way forward is not to cut back or sit on the sidelines. According to several businessmen attending INSEAD’s Leadership Summit Europe, you’ve got to keep one eye on the balance sheet, another on the horizon and be mindful of constant change as new circumstances will often hide opportunities in what appears to be trouble.
Cathay Pacific takes off cautiously to brighter skies
At its Annual General Meeting recently, IATA (International Air Transport Association) predicted that the industry will recover faster than expected, with Asia-Pacific carriers powering the upturn. INSEAD Knowledge takes a closer look at the performance of one of these airlines: the flag carrier of Hong Kong, Cathay Pacific.
The emerging markets: exploring the consequences
The rapid development of countries like China and India is a remarkable phenomenon, says Vince Cable, the UK’s Secretary of State for Business, Innovation and Skills. “In a matter of one generation, China has broken through to a degree that took over a century in Britain. Solidly established precedents like South Korea show that this breakthrough can be sustained. It is clear that major so-called emerging markets have already emerged.”
Numbers may not lie, but often their true significance lies in closer scrutiny. And a good example of this statement lies in the numbers used to tout the world’s great trade imbalance with China - a deficit that shows the EU trade deficit growing from 50 billion euros in 2000 to 297 billion in 2008. “But,” says Pascal Lamy, Director-General of the 153-member Geneva-based World Trade Organisation,
Coping with Copenhagen: the business implications
The Copenhagen Climate Summit (COP 15) began on December 7, 2009, on the heels of the pirating of the East Anglia University Climatic Research Unit's email exchanges, and calls of climate sceptics to re-examine the scientific basis for undertaking actions to limit greenhouse gas (GHG) emissions originating from human activity.
Shining a light on China
With an economy that’s set to grow at around 10 per cent despite the financial crisis, labour costs among the lowest in the world and a huge untapped domestic market with pent-up consumer demand to match, China beckons every businessman with an eye on containing costs and expanding his reach. But, business person beware, cautions INSEAD Emeritus Professor of International Political Economy Jonathan Story, who has just written a new book, 'China Uncovered - What You Need to Know to Do Business
Green Technology: China Means Business
A substantial portion of the Chinese government’s stimulus package, more than a third in fact, has been earmarked for projects that would either, directly or indirectly, have a positive environmental impact. Are these green initiatives indicative of a broader strategic stance on the part of the Chinese government on environmental issues, or just a temporary boost to China’s economy and the country’s image?
A ‘naive response’ to economic growth?
With many economies expected to begin posting growth again this year, the group executive director and CEO of wholesale banking at Standard Chartered Bank has some words of caution: accepting GDP figures at face value “would be a naïve response”.
Gaining a competitive advantage with knowledge-based skills
The financial crisis has highlighted deficiencies in knowledge-based skills in Europe and unless they’re tackled now, the region could get left behind. That was one of the key messages from an event held recently at INSEAD’s Europe campus in France.
China faces an economic crossroads
With the collapse of external demand in the wake of the global financial crisis, China needs to reduce its dependence on exports and investments, and shift towards internal private consumption, says Stephen Roach, a leading economist and Hong Kong-based chairman of Morgan Stanley Asia.
What’s next after Copenhagen?
Was there too much riding on the United Nations Climate Change Conference which concluded in Copenhagen at the weekend?
‘Incredible consensus’ for regulatory reforms among G20, but political will weakening
In the face of the impending global financial meltdown a year ago, world leaders found clarity: financial regulatory frameworks needed to be overhauled.