Hayes Knight would like to thank ASB’s Chief Economist Nick Tuffley for his fantastic insights into the current financial strains on Europe and the continuing crisis centred around Greece’s debt.
Other key messages that stood out:
- One of the most significant buffers for New Zealand is the increasing share of NZ exports, particularly to Asia. The growth of domestic demand in Asia has seen a surge in food intake to feed a growing middle class. Therefore there is an opportunity for New Zealand to supply fast moving consumer goods, which were previously unavailable.
- Export prices past peak but to remain relatively firm
- Building boom is coming…but likely to hit in the second-half 2012
- Housing prices expected to increase modestly over 2011, 2012
- Businesses are cautiously looking to the future
- Inflation is falling back to 2-3% after the GST increase
- Overall – gradual underlying recovery, assuming Europe doesn’t trigger a full-blown crisis.
Matthew Bellingham complemented this with his views on business reinvention and how business models need to be reinvented to keep up with the changing pace of life, new developments, emerging technology and evolving consumer behaviour. Matthew broke this daunting task into three clear steps:
- Realise that the key to success is not thinking about a business model; instead it’s about focusing on the opportunity to satisfy a real customer who needs a job done.
- Construct a blueprint laying out how your company can fulfill that need at a profit.
- Compare that blueprint to your existing model to see how much change is required to capture the opportunity.
Businesses are also under pressure to be more sustainable. While this does encompass green thinking, owners also need to realise that in order to be sustainable, to be here tomorrow, they must return a profit.
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