Competitive horizons

Citation

(2018), "Competitive horizons", Strategic Direction, Vol. 34 No. 7, pp. 35-36. https://doi.org/10.1108/SD-03-2018-0049

Oil set to boost economy in Ghana

According to a report published by www.cnbc.com, the Ghanaian economy is set to grow by 8.3 per cent during 2018. This is considerably above the 6.8 per cent announced in previous government forecasts and makes the economy one of the fastest growing worldwide. It is also substantially higher than the 3.2 per cent average for the African continent forecast by the World Bank. Oil is seen as the main catalyst for the anticipated expansion with rising prices and increased production key factors. Overseas companies have already expanded operations at different oil fields around Ghana. The report also predicts that other sectors of the economy will grow steadily over the year. Government moves to diversify the nation’s economy, slash corporate taxes and tackle corruption are among the factors to stimulate higher growth. However, prospects are gloomier for the cocoa production the country is renowned for. Together with the Ivory Coast, Ghana is responsible for supplying 60 per cent of cocoa across the globe. Production in 2018 is set to fall well short of the predicted 850,000 tons due to unfavorable weather conditions and growing urbanization. Low profit levels for producers means that young people in urban areas are not interested in getting involved in the industry.

Lack of apprenticeship awareness a concern for UK engineering sector

The latest annual report from Engineering UK has highlighted the important role of apprenticeships in making the industry competitive. Apprenticeships are viewed as making a critical contribution towards ensuring that skills shortages are effectively managed. However, the lower than desired uptake of engineering apprenticeships means that the sector currently has around 56,000 workers fewer than needed each year for core engineering roles and other related positions. The report, as published by www.theengineer.co.uk, cites ignorance about apprenticeships as the main barrier to greater participation. Evidence shows that significantly less than half of 11-14 year-olds surveyed have some knowledge of apprenticeships and the figures are similar for their parents. Poor awareness of apprenticeships and the different types available has prompted calls for greater efforts by industry and the UK government to promote apprenticeships more effectively. There is a concomitant need to improve the standard of provision by ensuring that apprenticeships meet the requirements of different groups of young people. Attracting more girls into the industry should also be a core aim.

Identify your target audience for marketing success

Business advertising will only succeed if it engages with the right people. An article published by www.thebalance.com, points out the need for marketers to identify the target audience for their product or service. Then ways must be found to reach them effectively. Firms naturally try and resonate with as many potential customers as possible. But such an approach is only justifiable if the offering has wide appeal. Others will be best served by a more narrow focus whereby marketing efforts are aimed at specific groups. In the latter case, it is also important to conduct market research in order to identify customer needs and whether the advertised product can satisfy them. Surveying website visitors is one way of doing this. Participation rates can be increased if vouchers or other incentives are offered for completed surveys. Communication channels used need to be appropriate for the targeted segment. For example, conventional print media would normally be more appropriate for targeting older consumers than social media platforms. Evaluation of advertisements is another crucial part of the equation. Monitoring such as sales, enquiries, website traffic and information requests can provide valuable insight into its effectiveness.

Investment in expansion and R&D on the rise among New Zealand firms

Research and development (R&D) activities by companies in New Zealand have risen to a ten-year high. However, the most recent Statistics New Zealand's Business Operations Survey found that overall participation remains low. Just over 11 per cent of firms employing six or more people invested in R&D. This was only marginally up on the 7 per cent and 9 per cent noted in the two preceding years. Total business investment in R&D climbed from $1.6 billion to $1.8 billion over that period. Current spending on R&D accounts for 1.3 per cent of New Zealand’s GDP. The government wants that figure to rise to 2.0 per cent within ten years. Lack of management resources and the costs involved in high level innovation are main barriers to investment. The number of companies investing in growth is increasing at a highest rate with the 33 per cent up on the 30 per cent and 29 per cent in previous years. Entering new markets and buying assets are two examples of what constitutes expansion. The survey, as published by www.scoop.co.nz, points out that expansion over the last decade has been strongest in construction as new opportunities arose in the wake of the global financial crisis of 2009. Telecommunications and information media sectors have also invested significantly in growth during that period.