The Leading Edge - Winter 2009 - (Page 10)

forecast 2009 a new behaviors adopted What’s ahead and what’s behind for businesses, consumers and more time for turnaround Turnaround consultants and financial advisors will continue to face an abundance of work but a paucity of options to save businesses stifled by a credit crunch, according to the Turnaround Management Association. The organization’s annual Trend Watch poll released last fall shows about three-quarters of respondents report engagements and revenue up at least 10 percent in 2008 over the previous year. The same number anticipates further revenue growth this year, with most expecting increases of up to 25 percent. Manufacturing (62 percent), construction (46 percent) and distribution (45 percent) were the top industries in which turnaround professionals were working. More than one in four respondents said their work also includes retail, real estate, automotive, service businesses and health care. “Not only are more companies in need of turnaround professionals, the new Bankruptcy Code and the current credit market have combined such that a significantly higher percentage of these troubled companies will have no option other than liquidation,” says James B. Shein, chair of the TMA Trend Watch Committee and professor of strategy and management at the Kellogg School of Management at Northwestern University. s 2009 begins, forecasters and trend experts share their insight and predictions about what lies ahead. And this time, unlike in many recent years, their comments all reflect the impact of the economic troubles. government promotes green E. Bruce Harrison, author of Corporate Greening 2.0, says despite congressional preoccupation with economic recovery, Congress will enable legislation that mandates stronger green/ energy initiatives for business. The cooperation between Capitol Hill and the White House will energize the initiatives. Public companies in the United States must prepare for election-year political pledges to convert to a long life. Standards, rules, inspections, compliance deadlines and lawsuits will follow the corporate-greening pattern set in 1970 when the Environmental Protection Agency opened its doors, Harrison notes. “Change is good—even when it means temporary losses—and ups and downs happen,” says Judith Lederman, president of a strategic marketing firm and former market analyst with a leading consumer publication. “A plummeting stock market does not mean that consumers need less; it just means that the buying patterns are likely to change and spending will decrease,” she says. “Businesses that are going to succeed are going to have to target strategically, lower prices, appeal to bargain-hunting attitudes and stay aware of what people are most likely to buy.” Lederman offers her consumer behavior predictions: • Clothing—Consumers are holding off on making expensive fashion purchases and that trend is likely to continue. Consumers will look for durable and classic clothing. Dry-clean-only tags won’t be as popular, which may pinch dry cleaners too. • Food—Restaurants will suffer in the long term as more people analyze their credit card bills and come face to face with their restaurant expenditures. In grocery stores, coupons will see a resurgence not only among the boomer and older generations who have used them previously, but among the younger generations as well. Comfort food, not gourmet cuisine, will be popular again. • Technology—Online shopping is likely to experience renewed growth. Mobile marketing, such as Twittering, blogging, texting, will increase to reach the public and let them know what’s happening. • Health care—More stress-related illnesses may come into play but consumers will be less likely to pay for expensive co-pays on medical tests. Emergency room visits will increase as the middle class neglects its health and follows the indigent community that uses the ER as a primary care provider. Lower-cost HMOs are likely to be busier and get more customers than the more expensive PPOs. Social media expands business role Being relevant in the social media world will get to the top of more companies’ to-do lists, according to Romji Mahajan, chief marketing officer of Ascentium Corp. Ascentium is finding more of its customers want or need to tie into various social platforms to give their customers better insight into consumer demographics and trends. “These types of platforms enable companies to be more relevant to younger and more technically savvy consumers who have flocked to sites like MySpace, Facebook and Twitter,” Mahajan says. baby boomers talk exit strategies As the baby boomer generation approaches traditional retirement age and rides the economic roller coaster, more will see uncertainty in their retirement plans. In 2009, more small- and mid-size business owners will recognize the need to plan for the future, says Bob O’Hara, president of O’Hara & Company. O’Hara, who advises on exit planning, says baby boomer business owners realistically must know there will probably be no more peaks in their business cycle. “Therefore, it is imperative for them to think of the bigger picture now. In five or six years when the markets come back, it will be too late,” he says. not just social Web expansion Paula Lovell, president of Lovell Communications and past chairman of the Federal Reserve Bank of Atlanta, agrees that the Web is where more businesses will go. “In 2009, we expect more businesses to turn to social networking, search engines and the Web for public relations exposure, driving demand for Web sites with effective search engine optimization, SEO,” she says. As traditional media organizations consolidate, the remaining journalists will be required to produce more; thus they will turn to expert sources who are easy to find online. 10 VOLUME 9 n ISSUE 2 n WInTER 2009

Table of Contents Feed for the Digital Edition of The Leading Edge - Winter 2009

The Leading Edge - Winter 2009 Contents Stay on the Climb New Business Often Hinges on an Exceptional Proposal 2009: What’s Ahead and What's Behind for Businesses, Consumers and More Top 10 Misconceptions of Doing Business in Canada In a Nutshell: Q&A The Leading Edge Alliance

The Leading Edge - Winter 2009

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