...McKinsey Banking Practice McKinsey Private Banking Survey 2012 Finding a new footing July 2012 Contents 05 Introduction 19 06 12 Middle East: Attractive but increasingly competitive Western Europe: Fighting for sustainable profits 21 Priorities for finding a new footing North America: Expanding profitability, but no growth 26 27 Disclaimer 16 Authors Asia: Growing fast but at a cost McKinsey Private Banking Survey 2012 Finding a new footing 5 Introduction Private banking may be one of the most attractive segments within financial services in 1 terms of profitability, but it has not emerged unscathed from 4 years of financial crisis. Not only did the crisis hit the economics of the industry by slowing net inflows and squeezing margins, it has also led to structural changes. Following a difficult year in 2009, when net inflows in developed markets were negligible and margins and profits hit record lows, a modest improvement was seen in 2010. It seemed at first that this recovery would continue in 2011. But, after a good start, the industry suffered from a difficult second half: markets fell and profits stagnated at low levels. The situation has not yet improved in 2012; another good start was wiped out in the second quarter. Given the continued growth in global wealth, this implies that private banks are failing to capture their fair share of the market. The longer-term structural changes caused by the crisis are creating...
Words: 9308 - Pages: 38
...an effective sustainability report. Sustainability reports refer to disclose companies’ social and environmental performance. It is essential for the financial service industry to convey their sustainability profile and integrate this to their financial report. This article also makes an evaluation about Westpac’s sustainability report. Westpac’s sustainable reporting has used the table and bar chart to illustrate their sustainability performance accurate and transparent. Therefore, this report has a good quality. 1. Introduction Since the environmental and social problems have become the focus of public concern, a considerable of companies have laid emphasis on disclosing their sustainable performance. Especially under the great depression caused by global financial crisis, a number of financial service industries...
Words: 1561 - Pages: 7
...44 A bright future for India’s defense industry? The stars might be aligning for India’s defense sector. Here’s what the government and industry can do to seize the moment. Brajesh Chhibber and Rajat Dhawan India’s defense industry, which has grown will have to learn to manage some uniquely substantially in recent years, seems headed for Indian requirements. even better days. Growth in domestic demand should continue to be robust, the government has To build tomorrow’s industry, India’s Ministry a clear vision for an indigenous defense indus- of Defence and its contractors might look to try, the country’s attractiveness to global defense mature markets such as France and the United companies is rising due to shrinking global Kingdom, as well as to developing markets defense budgets, and there is tremendous export such as South Korea, and apply some of the ideas potential in engineering services and compo- pioneered there. One essential move is to decide nent sourcing. on core capabilities and focus efforts on building these in India. Other steps include improving The way forward is not without some signifi- the talent market, building skills in the govern- cant obstacles, however. In particular, the ment and private companies, and ensuring government’s new purchasing procedures must open and inclusive access to defense markets. prove their mettle, and broadening and shifting the nation’s...
Words: 4053 - Pages: 17
...growth and renewal: The path from crisis to recovery The McKinsey Global Institute The McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company, was established in 1990 to develop a deeper understanding of the evolving global economy. Our goal is to provide leaders in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions. MGI research combines the disciplines of economics and management, employing the analytical tools of economics with the insights of business leaders. Our “micro-to-macro” methodology examines microeconomic industry trends to better understand the broad macroeconomic forces affecting business strategy and public policy. MGI’s in-depth reports have covered more than 20 countries and 30 industries. Current research focuses on four themes: productivity and growth; the evolution of global financial markets; the economic impact of technology and innovation; and urbanization. Recent reports have assessed job creation, resource productivity, cities of the future, and the impact of the Internet. MGI is led by three McKinsey & Company directors: Richard Dobbs, James Manyika, and Charles Roxburgh. Susan Lund serves as director of research. Project teams are led by a group of senior fellows and include consultants from McKinsey’s offices around the world. These teams draw on McKinsey’s global network of partners and industry and management experts. In...
Words: 11516 - Pages: 47
...L. L. Bean – Forecasting and Planning Tracy Goodhew Capella University Bus-FP3022 October 22, 2015 Business Model L. L. Bean has had a growing and changing business model since 1911. The main focus is and has always been catalog sales of outdoor apparel and gear. The L. L. Bean company began with the mailing of catalogs featuring one product, outdoor hunting shoes, and now “The outdoor apparel and gear maker mails more than 200 million catalogs per year” (Reed, S., 2009). Of course, in this new business era L.L. Bean has evolved and now does much of its business online. “Bean's golden rule was to "sell good merchandise at a reasonable profit, treat your customers like human beings, and they will always come back for more". His model, still used today, was to build customer loyalty by providing exceptional service” (Pulido, I.) Supply Chain “Distribution operations are located in Maine and employed nearly 2,500 people during the peak business season in 2014. Over 15 million packages were shipped during 2014, with over one million packages going out during our busiest week. The hub of the L.L.Bean distribution operation is a one-million-square-foot, state-of-the-art facility with the capacity to hold 10 million units. Manufacturing facilities are located in Brunswick and Lewiston, Maine, where over 350 employees produce such iconic products as the Maine Hunting Shoe®, the L.L. Bean Boot and the Boat and Tote® Bag. Customer demand for the iconic...
Words: 1211 - Pages: 5
...Are these the right trends to watch? Share your thoughts with the authors at landscape.hbr.org. business executives are looking again to the future. As they reengage in strategic thinking, many are struck by a sense that the world has changed: The turmoil was not merely another turn of the business cycle but a restructuring of the economic order. Is that impression accurate? To answer this question, it is necessary to examine the underlying forces that shape the business environment and to look for discontinuities. McKinsey & Company tracks the most important of these forces, from the growth of emerging markets Lorenzo Petrantoni Eric Beinhocker is a senior fellow at the McKinsey Global Institute, McKinsey & Company’s economics research arm, where he leads research on economic, management, and public policy issues; he is based in London. Ian Davis, also based in London, is McKinsey’s th managing director. Lenny Mendonca is the chair of the McKinsey Global Institute and a director in the firm’s San Francisco o ce. hbr.org | July–August 2009 | Harvard Business Review 55 STRATEGY in the NEW WORLD. Resources feeling the strain Just prior to the financial crisis, rising demand for...
Words: 3303 - Pages: 14
...fashion e-tailer Myntra which jointly exposes their vision to capture more than 50% e-market share by strategic alliance. As Flipkart’s annualized sales crossed over 6,100 crore a year ahead of target. It had estimated to reach the billion dollar mark for gross merchandise value by 2015; on the other hand Myntra’s revenue was about 1,000 crore in the previous financial year. It aims to double its revenue in this financial year as it expands its seller base and adds products following China’s biggest e-retail model Alibaba.com. Myntra has about 100 sellers on board and plans to increase this number to 1,000 by fiscal end. The strategy of Flipkart is to invest around 600 crore in its fashion business in coming years to combat with global rivals like Amazon and eBay Inc. Furthermore it reveals the philosophy behind this giant acquisition and how this will contribute to the...
Words: 5049 - Pages: 21
...No. 2005-12-A Office of Economics Working Paper U.S. International Trade Commission Growth in Services Outsourcing to India: Propellant or Drain on the U.S. Economy? William Greene* U.S. International Trade Commission January 2006 *The author is with the Office of Economics of the U.S. International Trade Commission. Office of Economics working papers are the result of the ongoing professional research of USITC staff and are solely meant to represent the opinions and professional research of individual authors. These papers are not meant to represent in any way the views of the U.S. International Trade Commission or any of its individual Commissioners. Working papers are circulated to promote the active exchange of ideas between USITC Staff and recognized experts outside the USITC, and to promote professional development of Office staff by encouraging outside professional critique of staff research. Address correspondence to: Office of Economics U.S. International Trade Commission Washington, DC 20436 USA No. 2006-01-A OFFICE OF ECONOMICS WORKING PAPER U.S. INTERNATIONAL TRADE COMMISSION Growth in Services Outsourcing to India: Propellant or Drain on the U.S. Economy? William Greene U.S. International Trade Commission January 2006 The authors is with the Office of Economics of the U.S. International Trade Commission. Office of Economics working papers are the result of the ongoing professional research of USITC Staff and are solely meant to represent...
Words: 33759 - Pages: 136
...1 J U LY 2 0 0 9 m a r k e t i n g & sa les p r a c t i c e Understanding China’s wealthy China will soon be home to the world’s fourth-largest population of wealthy households. Companies that hope to reach them must understand how they differ from their counterparts elsewhere, from other Chinese consumers, and from one another. Yuval Atsmon and Vinay Dixit 2 Talking about wealthy consumers in China may seem odd during the middle of a global economic crisis. Yet for many companies around the world, wealthy Chinese represent a rare opportunity in an otherwise dismal picture. Despite the global downturn, the number of wealthy households in China continues to grow. By 2015, the country will hold the world’s fourth-largest concentration of wealthy people. Companies that better understand the factors behind their purchases could steal a march on the competition. Our research shows that their behavior is very different from that of their counterparts in other countries and of consumers in other income classes inside China.1 Indeed, the pool of luxury consumers has become large enough to form distinct segments, each with its own behavior and needs. Our work included face-to-face interviews in 16 cities with 1,750 wealthy Chinese consumers—people in households earning more than $36,500 annually, which gives them the spending power of a US household making roughly $100,000 a year. These wealthy Chinese households, with an average annual income of about $80,000...
Words: 3819 - Pages: 16
...ECONOMY ON HYPER-DRIVE NOMINAL GDP: 1992 TO 2011 Source: World Bank 2 A quick expansion into ‘NEW GROUND’ PROVINCIAL GDP PROFILES (2011) Shanghai Beijing Tianjin Inner Mongolia Shaanxi Hunan Chongqing Sichuan Guizhou Source: China National Statistics Bureau, BBDO Analysis 3 As the economy expands and breaks into new ground… …the luxury category is also following suit -- it is achieving high growth simply by getting MORE PEOPLE TO BUY LUXURY GOODS FOR THE VERY FIRST TIME… 4 Luxury spending growth is driven by CATEGORY FIRST-TIMERS DECONSTRUCTING LUXURY SPENDING IN CHINA Source: Bain Luxury Market Survey – China 5 The crucial role of China’s BURGEONING MIDDLE CLASS % SHARE OF URBAN HOUSEHOLDS by income group (in RMB) % SHARE OF LUXURY CONSUMPTION by income group (in RMB) Source: McKinsey & Co. 6 How can they AFFORD LUXURY GOODS What is driving THEIR INTEREST IN LUXURY ? 7 China’ s middle class have a MINDSET THAT IS CONDUCIVE Optimism Ambition Loving of Life for luxury goods & services 65% feel their life will be better in the next 12 months. 42% say they work or study harder in order to succeed. 87% find it important to experience new things & enjoy life. Source: BBDO Voices 8 Their is a desire that is much stronger than THEIR EARNING POWER 49% 62% Say they long for luxury goods despite not being able to afford them right now. The figure specifically among 20...
Words: 3266 - Pages: 14
...McKinsey Global Institute May 2013 Disruptive technologies: Advances that will transform life, business, and the global economy The McKinsey Global Institute The McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company, was established in 1990 to develop a deeper understanding of the evolving global economy. Our goal is to provide leaders in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions. MGI research combines the disciplines of economics and management, employing the analytical tools of economics with the insights of business leaders. Our “micro-to-macro” methodology examines microeconomic industry trends to better understand the broad macroeconomic forces affecting business strategy and public policy. MGI’s in-depth reports have covered more than 20 countries and 30 industries. Current research focuses on four themes: productivity and growth, the evolution of global financial markets, the economic impact of technology and innovation, and urbanization. Recent reports have assessed job creation, resource productivity, cities of the future, and the impact of the Internet. MGI is led by McKinsey & Company directors Richard Dobbs and James Manyika. Yougang Chen, Michael Chui, Susan Lund, and Jaana Remes serve as MGI principals. Project teams are led by a group of senior fellows and include consultants from McKinsey’s offices around the world. These teams draw...
Words: 80396 - Pages: 322
...MGW3401 – STRATEGIC MANAGEMENT Tenfold™ Organic Textile Case Analysis Report Lecturer: Dr Chong Yit Sean, Esther Tutor: Dr Tan Seow Kian, Sharon Cheok Huei Chun (24826200) Teoh Tong Aik (26094193) Florian Navintach Zeorelli Samerawickreme (24729833) Clement Marsha (25342754) Habiba Almahrooqi (25384589) Table of Contents Executive Summary 1.0 Introduction 1.1 Purpose of the report 1.2 Company information 1.3 Assumption 1.4 Methodology 1.5 Purpose of Report 2.0 Strategic Analysis 2.1 SWOT ANALYSIS 2.1.1 Strengths 2.1.2 Weaknesses 2.1.3 Opportunities 2.1.4 Threats 2.2 Main issues 2.2.1 Issue 1 2.2.2 Issue 2 3.0 Evaluation of Alternative Strategies 3.1 Alternative 1 3.2 Alternative 2 4.0 Implementation 5.0 Conclusion 6.0 Reference list 7.0 Appendix Executive Summary Tenfold™ Organic textile is a company that provides naturally dyed organic cotton products to consumers, manufacturers and retailers. Tenfold attracts its customers by being an environmentally responsible organization that produce apparel using eco-friendly and chemical-free dye. The purpose of this report it to analyze the strengths, weakness, opportunities and threats of Tenfold in order to address the main issues that the company can improve. Furthermore, using academic journals, two alternative strategies will be discussed to improve and enhance the organization’s strategic position. The first issue that Tenfold faces...
Words: 3701 - Pages: 15
...McKinsey Global Institute June 2011 Big data: The next frontier for innovation, competition, and productivity The McKinsey Global Institute The McKinsey Global Institute (MGI), established in 1990, is McKinsey & Company’s business and economics research arm. MGI’s mission is to help leaders in the commercial, public, and social sectors develop a deeper understanding of the evolution of the global economy and to provide a fact base that contributes to decision making on critical management and policy issues. MGI research combines two disciplines: economics and management. Economists often have limited access to the practical problems facing senior managers, while senior managers often lack the time and incentive to look beyond their own industry to the larger issues of the global economy. By integrating these perspectives, MGI is able to gain insights into the microeconomic underpinnings of the long-term macroeconomic trends affecting business strategy and policy making. For nearly two decades, MGI has utilized this “micro-to-macro” approach in research covering more than 20 countries and 30 industry sectors. MGI’s current research agenda focuses on three broad areas: productivity, competitiveness, and growth; the evolution of global financial markets; and the economic impact of technology. Recent research has examined a program of reform to bolster growth and renewal in Europe and the United States through accelerated productivity growth; Africa’s economic potential;...
Words: 60035 - Pages: 241
...McKinsey Global Institute June 2011 Big data: The next frontier for innovation, competition, and productivity The McKinsey Global Institute The McKinsey Global Institute (MGI), established in 1990, is McKinsey & Company’s business and economics research arm. MGI’s mission is to help leaders in the commercial, public, and social sectors develop a deeper understanding of the evolution of the global economy and to provide a fact base that contributes to decision making on critical management and policy issues. MGI research combines two disciplines: economics and management. Economists often have limited access to the practical problems facing senior managers, while senior managers often lack the time and incentive to look beyond their own industry to the larger issues of the global economy. By integrating these perspectives, MGI is able to gain insights into the microeconomic underpinnings of the long-term macroeconomic trends affecting business strategy and policy making. For nearly two decades, MGI has utilized this “micro-to-macro” approach in research covering more than 20 countries and 30 industry sectors. MGI’s current research agenda focuses on three broad areas: productivity, competitiveness, and growth; the evolution of global financial markets; and the economic impact of technology. Recent research has examined a program of reform to bolster growth and renewal in Europe and the United States through accelerated productivity growth; Africa’s economic potential;...
Words: 60035 - Pages: 241
...need or want the goods or services. While at the surface, this many sound very simple, there is a great deal of theory, policy, and business strategy that constitutes international trade. Below are the different trade theories that have evolved over the past century and which are most relevant today. Plus the factors that impact international trade and how businesses and governments use these factors to their respective benefits to promote their interests. What Are the Different International Trade Theories? In more recent centuries, economists have focused on trying to understand and explain these trade patterns. To better understand how modern global trade has evolved, it’s important to understand how countries traded with one another historically. Over time, economists have developed theories to explain the mechanisms of global trade. The main historical theories are called classical and are from the perspective of a country, or country-based. By the mid-twentieth century, the theories began to shift to explain trade from a firm, rather than a country, perspective. These theories are referred to as modern and are firm-based or company-based. Both of these categories, classical and modern, consist of several international theories. Classical Country-Based...
Words: 11761 - Pages: 48
