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Toward a Global Economy |
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Macro-economics |
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 The international economic and political context is rapidly evolving:
 Emergence of a global market (new economic powers, new high growth markets, less customs and tariff barriers, etc.)
Broader, more intense competitive pressures (large number of competitors, lower prices and costs, more extensive innovation, greater degrees of reactivity and flexibility, etc.)
Rapid and extensive development of information and communication technologies (computer systems, decisional tools, telecommunications, the Internet, etc.)
Improved logistics and larger transport networks (shorter lead times, new supply models, etc.)
Growing pressure from shareholders (rapid return on investment, value creation, etc.)
The economic environment is characterized by an increasing number of risks and uncertainties.
Faced with these changes, companies, suppliers and customers realize the weaknesses and limits of conventional approaches. If they are to continue growing and developing, they will have to lose no time in defining new strategies combining:
Improved performance and internal processes
Reduction in costs and investments
Access to new markets and competencies
Control of quality and risks
Innovation and creation of value
Consequently, new strategies are being implemented that take account of companies' strengths and weaknesses and of the new global economic environment:
Improving operational performance (lean manufacturing, lean supply chain)
Optimizing procurement (sourcing), supply chain integration, control of quality and risks
Offshoring to low cost countries and transfers of work
Outsourcing / subcontracting to performing and competitive suppliers
Developing sales and businesses in new markets, partnerships (imports/exports)
Acquiring / merging with high potentials companies and developing synergies
Lastly, companies and their organization are experiencing fragmentation, as the "extended entreprise" develops:
Global geographic relocation of industrial and service activities based on the strengths of host areas or countries and on changes in demand.
A new approach to the organization of companies' various activities based on their core businesses and on the available subcontracting opportunities. |
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A Global Economy (PDF) |
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Della Rocca Services, Your Global Strategy Partner
For Improved Competitiveness, Business Development and Growth
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