Two pitfalls in business competition

There are several pitfalls in business competition. But two of these could lead to major disasters: misinterpretation and misunderstanding. Here is a short preview:

Misinterpretation is basically about words, phrases or statements made most of the time orally or in press releases issued by firms. This borders between informal to formal circumstances. As it happens most of the time the originator is not challenged promptly to explain what he has really meant.

Receiver is pushed into dark and presume the meaning of the utterance according to his viewpoint and/or perception. He looks at the texture, words meaning implied rather than what precisely conveyed in essence. Here comes the trouble. Relying over misinterpretation sinking in, firm would probably make moves that could lead to further cloudy thinking resulting ultimately in a wrong or unwarranted action that gives away the trust which has been built so far in business relationship with the originator.

A good example is the originator in a press conference alludes to your firm as a partner ‘who counts profit more than long term alliance’.

Misunderstanding is more about conduct and less about facts, except when these facts are presented in a manner that has potential to lead you to misty thinking. Put it in another way, the style of presentation rather than the content itself abrades you. As regards to conduct, a good example is your collaborator in public forum pats on the shoulders of the officials of a company whom you consider as a mortal enemy.

‘Facts are sacred while criticism is free’ goes the adage. The chance of misunderstanding occurs when your opponent publishes vital statistics of product and market share of your industry. He innocently alternates your precise market share to another player and imputes his one onto you. You take umbrage of this error & omission. Promptly your opponent admits mistake and expresses his regret and urges you to close the matter. You misunderstand his apology as somewhat not genuine and wishes to wreak revenge at the next opportune time when you can settle the score.

Your misunderstanding has a toll upon you in your relationship with not only your competitor but within the length and breadth of the market. Whereas the opponent has moved on, you are still smarting about this incident!  

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

Post dollar world, geoeconomics scenario

The future is crystal clear: the dollar dominance is going to be a thing of past. But what could be the geoeconomics scenario in the post dollar world. Here are some of my thoughts:

Dollar is at present the reserve currency with 58% holdings where the globe deposits in US Federal Reserve and in US Treasuries. As regards to trading and exchange dollar is perched at 88% of the global market. Key reason for this dominance is the US clout in geopolitics, geoeconomics, geostrategy and geotechnology areas. This dominance began in and around 1945 and has lasted until now. Today the Global South is challenging US leadership in every angle of the Geo-spectrum.

Post dollar, the scenario changes from US as the supremo to one of ‘also ran’’. Whereas the dollar is not going away into sunset that easily and early too, slowly and steadily the Global South begins to chip away the tentacles of the US Octopus. As this gets accelerated US finds in troubled waters due to the following geoeconomics pivots:

·        Easy access to global markets get depleted

·        Borrowing cost for US spirals up

·        Reserve status of dollar gets diluted

·        Printing of US currency stalls

·        Finally stock market valuation across the board in New York plunges

The narrative changes from fiat currency to those backed by gold, commodities and energy & mineral resources. Introduction of these asset based currencies include OPEC+ currency backed by the oil cartel, Russian Ruble backed by gold and Chinese Yuan backed by rear earth.

Another aspect that would prevail in the coming years is the common currency of BRICS+ backed by the basket of currencies of the present 11 members and the future additions to BRICS+ in the coming years.

Yet another disruptive geoeconomics weapon is the digital yuan that is already making inroads into several countries in Asia and is expected to be adopted in Middle East & North Africa Countries (MENA) by the next decade 2030 to 2039.

Contrary to the popular nation that the Global South would mount a direct offensive on US dollar, the group supported by BRICS+ and OPEC+ would target the present users of dollar to switch on to their own currencies by offering wide ranging incentives. These would include economic development programmes in the BRI format, security & defence alliance as well as facilitating the “use now pay later” for imports of finished products from the major economies in the Global South.

Put it simply, the new geoeconomics strategy would be incentivising the current users of dollar who are addicted to it, to ditch it step by step rather than compelling them to shun US dollar altogether!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

Appraising boycott as geoeconomics strategy

Boycott in simple terms is withdrawal from or restrictions imposed upon a target in commercial, financial, social and/or political sectors by way of expressing displeasure or protest over the behaviour of the target. The bottom line is the target must toe the line of the originator or hell would break out.

In geoeconomics, boycott as a useful weapon to arm-twist the strong and punish the week is often resorted to. Underlying idea is, the originator sends a forceful message that it is just the beginning similar to iceberg that progressively could turn out to me a major road block in the path of target’s progress. A geoeconomics boycott could be chosen from a wide spectrum beginning with an initial shock to a full-spectrum attack over geoeconomics architecture of the target. Put simply, originator intends to move either or both horizontally and vertically in the escalation ladder.

There are few finer points in boycott as geoeconomics strategy. Initially the announcement of boycott is intended to bring forth bad publicity for the target so that not only his relationship with the originator is in question but the message alerts third parties to be vary of their own existing relationship with the target.

Boycott as geoeconomics strategy can backfire too. It acts as a knife that cuts both ways. The sad truth is oftentimes boycott boomerangs on the originator whose fundamentals could be affected inadvertently. The boycott imposed by the West over Russia ended more economic hardship to the West rather than to Russia proper.

Sometimes boycott brings out unexpected windfall for the target. The Western boycott over Russian trade & travel made Russian resolve stiffer on one hand and to persuade her to seek alternatives in the Global South on the other. China and Global South made headway into the Russian market for their exports and imports of production and services.

Yet another issue that need to be weighed in before or during the pendency of the boycott is the counter punch the target could deliver back on the originator. It is sacrosanct for the target to go for the jugular vein of the originator. Mindful of the fact that America needs enriched uranium to operate nuclear power stations, Russia counter punched with a ban of the export of it to USA.

Recent Gaza hostilities came with a classic combination boycott system. The Muslim world is now united in imposing a well-thought of boycott programme intended to attack Corporate America that funds Israel. This goes in three parallel lines:

1.  Attack the American franchise system that distributes products in malls and dedicated stores such as Subway

2. American food & Beverage industry that licenses domestic firms to produce & distribute products such as Pepsi-Cola

3. Boycotting American brands and luxury items such as Timex in domestic market place.

Finally, it is geoeconomics stupid!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist