Wednesday, April 16, 2014

Changing World – A Look From E&Y



THIS POST WAS ORIGINALLY PUBLISHED MARCH 15, 2009


In the past few months Ernst & Young produced a number of reports that may help business to manage current situation. While most of them are generally about the business as a whole – the latest touches mining issues too.
First, I would like to mention  “Global megatrends:  Driving business in an era of uncertainty”  (download from here)

The report touches rebalancing of power and changes in global economic landscape. While the BRICs  are the major players, another group of countries are emerging that have the potential to behave like the BRICs — driving growth and making waves in the global markets. Very coignitive and interesting reading; and also touches the issue of Generation Y in this changing environment.

 The next report “Opportunities in Adversity” (download from here)
E&Y tries to understand how companies are reacting to the current crisis and seeing if there are opportunities to learn from their experience and best practice. Over 350 companies were questioned, and a very nice Stress Pendulum is displayed


Very good advice that can be summarized as “Cash is king as corporates tighten their belts”. A proficient note: those corporates that are in slightly better shape, saw the recession as an opportunity to expand with 34% globally considering strategic acquisitions.
 “The 2009 Ernst & Young business risk report” — the top 10 risks for global business
(download from here)

As you see on another stunning chart “The Top 10 Business Risks” (2008 rankings in parentheses) are:


1. The credit crunch (2)
2. Regulation and compliance (1)
3. Deepening recession (New)
4. Radical greening (9)
5. Non-traditional entrants (16)
6. Cost cutting (8)
7. Managing talent (11)
8. Executing alliance and transactions (7)
9. Business model redundancy (New)
10. Reputation risks (22)

It also highlights the risks “below the radar” that could also have a significant impact over the next three to five years.
And last, but not least: “Mining M&A Activity to Heat Up in 2008, 2009” – this is not yet on the Web, but a number of stories already are in the press, like this one.
One of the noteworthy facts is the statement that “U.S. and Canadian firms could be on the shopping list”. So far however, this activity is slow, as compared to the Chinese rush….

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