A recent survey identified three major trends for the next five years –
- Multinationals get stronger
If one were to take the top 100 economies in the world and include multinationals (MNs), then 69 of the top 100 would be multinationals. Not only are they stronger than some entire nations but also they exert disproportionate power – think of Facebook. We worry about the power of the state but social media could well be a stronger force.
The line between work and personal time will get increasingly blurred as MNs consume more of their employees’ lives – consider Google where sleepers, restaurants and recreation facilities are provided because employees spend the bulk of their days and nights at Google.
- Specialisation growth spawns closer networks
Technology has enabled companies to decentralise activities into areas of specialisation – an iPhone is now produced in different geographical locations depending on cost or skills. Competitive forces will make these networks get closer together and more seamless.
People will know more about co-workers thousands of kilometres away than they do about their own neighbours and local communities.
- Social networks and the environment will overhaul business
Like-minded people can now instantly link up on social media and they are already forming powerful lobby groups. These groups will force corporates to realign their strategies.
The impact of climate change is happening before our eyes – this will pressure businesses (and people) to conserve vital resources like water and to adopt strategies that will protect the environment. Many of the powerful social media groups are environmental lobby groups.
This will lead to growth in social capital as corporates are obliged to produce goods and services that enhance the greater good of society.
The future looks increasingly interesting!
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)