Informed i’s Weekly Business Insights

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Extractive summaries and key takeaways from the articles carefully curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since 2017 | Week 377, Nov 29-Dec 5, 2024 | Archive

Tariff threats will do harm, even if Donald Trump does not impose them

The Economist | November 28, 2024

3 key takeaways from the article

  1. It did not take long. Even before getting into office, Donald Trump fired the opening shots in a new trade war. The shock was not that he would add an extra tariff of 10% on Chinese goods rather it was news of tariffs of 25% on Canada and Mexico as soon as he returned to the White House. 
  2. No one knows how much Mr Trump sees tariffs as negotiating tools, and how much he wants to turn away from trade. It might therefore be tempting to breathe a sigh of relief that these tariffs are a theatrical way to gain leverage.
  3. For decades the benefits of global trade were so widely accepted that retaliatory tariffs were limited to trade disputes. Today free trade has depressingly few advocates, and tariffs are used willy-nilly. Even if Mr Trump intends them only as a negotiating tactic, the fear that the gains from trade might easily be frittered away will hang over the world economy.

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Topics:  Global Trade, USA, China, Mexico, Canada, Inflation, Tariff

What the departing White House chief tech advisor has to say on AI

By James O’Donnell | MIT Technology Review | December 2, 2024

2 key takeaways from the article

  1. President Biden’s administration will end within two months, and likely to depart with him is Arati Prabhakar, the top mind for science and technology in his cabinet. She has served as Director of the White House Office of Science and Technology Policy since 2022 and was the first to demonstrate ChatGPT to the president in the Oval Office. Prabhakar was instrumental in passing the president’s executive order on AI in 2023, which sets guidelines for tech companies to make AI safer and more transparent (though it relies on voluntary participation). 
  2. She reflects on risks assoicated with AI in the following three aspects:  One of the most fully manifested risks in horrific ways is deep fakes and image-based sexual abuse.  About risks of development of biological weapons through AI when people did the serious benchmarking about how much riskier that was compared with someone just doing Google searches, it turns out, there’s a marginally worse risk, but it is marginal.  And if consumers don’t have confidence that the AI tools they’re interacting with are respecting their privacy, are not embedding bias and discrimination, that they’re not causing safety problems, then all the marvelous possibilities really aren’t going to materialize.

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(Copyright lies with the publisher)Topics:  Technology and Humans, Artificial Intelligence, AI Risks, Deep fake, Large Language Models

Ian Bremmer: Brace yourself — Trump’s foreign policy could reshape the business world

By Ian Bremmer | Fortune Magazine | December 2024-January 2025 Issue

3 key takeaways from the article

  1. Around the world in 2024, voters chose change: in South Africa, France, Britain, and Japan. But nowhere does the anti-incumbent trend matter more than in the United States. The global uncertainty created by an oscillation of power between left and right—from Barack Obama to Donald Trump to Joe Biden and back to Trump—in the world’s only military superpower has again left political and business leaders in every region of the world scrambling to spot opportunities and risk.
  2. The 2016 election of Trump was a surprise to allies and adversaries in Europe, Asia, the Middle East, and beyond, but it came in the context of relative international stability. His comeback victory comes in a dramatically more unstable—and dangerous—geopolitical environment. Trump must manage two wars and a U.S. relationship with China that has grown much more confrontational.
  3. For business leaders navigating the next four years, there are critical questions that must be answered.  Are we heading into a trade war with China?  Will Europe remain united over Ukraine?  Will Trump calm the Middle East, or escalate its wars?  How will the Global South fare? And what will Trump mean for the U.S.’s North American neighbors? 

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Topics:  Donald Trump, Global Trade, Global Politics, War, China, USA, NATO, EU, South, Canada, Mexico, Muslims, Ghaza, Israel, Iran

The CEO’s essential checklist: Questions every chief executive should be able to answer

By Carolyn Dewar et al., | McKinsey & Company | November 13, 2024

2 key takeaways from the article

  1. A great aviator is constantly aware of their surroundings. Watching for changes in the weather and in the paths of other aircraft is vital. The same is true for being a great CEO, which is why the business press is full of information about what’s happening in the business environment: geopolitics, regulatory changes, inflation, generative AI, and so on.  Equally important for a pilot’s success is understanding their aircraft and its avionics. For CEOs, the same should hold true.
  2. The mindsets that underpin CEO Excellence translate into practice in each of the six responsibilities of the CEO’s role: be bold in setting the organizational direction, to align the organization treat the soft stuff as the hard stuff, to mobilize through leaders solve for the team’s psychology, engaging the board by helping directors to help the business, to connect with stakeholders start with ‘Why?, and managing personal effectiveness by do what only you can do.

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Topics:  Leadership, CEOs, Personal Developmnet, Board, Teams, Skills

Australian Fast-Food Billionaire Jack Cowin Dishes Up His Strategy For Success

By Jennifer Wells | Forbes Magazine | December 3, 2024

3 key takeaways from the article

  1. Despite the recent upheaval with Covid, the fundamentals haven’t changed in the fast-food industry in the past 50 years, says Jack Cowin, the billionaire founder and executive chairman of Competitive Foods Australia, the privately held group behind some of the country’s biggest fast-food chains.
  2. “Food has got to be hot, drinks have got to be cold and the service has got to be with a smile,” adds Cowin, one of Australia’s richest men with an estimated net worth of $3.2 billion.
  3. He’s been outspoken about rewarding employees on a profit-share basis to get better results. “Primarily it’s a people business,” he says.  His other strategic advice are: “Largely our strategy has been, how do you build, how do you reinvest into what you got,” he emphasizes, which has seen Competitive Foods plowing A$75 million back into Hungry Jack’s each year. “Why we have been successful is because we have had 50 odd years of reinvesting back into the business.”  “The primary focus in business is to not get yourself into a position where, if something goes wrong, you can get taken out of the game,” Cowin says. “Rule one in business is don’t go broke.”

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Topics:  Strategy, Business Model, Australian Fast-Food, Billionaire Jack Cowin

Strategy in an Era of Abundant Expertise

By Bobby Yerramilli-Rao et al., | Harvard Business Review Magazine | Forthcoming Issue of March–April 2025

2 key takeaways from the article

  1. AI is changing the cost and availability of expertise, and that will fundamentally alter how businesses organize and compete.  If companies derive value from providing a differentiated bundle of expertise, how can they continue to be relevant when improvements in AI’s core capabilities make some or all of that expertise more easily available to competitors and customers? What is the basis for value capture in an era of abundant expertise?  
  2. Every company will need to reevaluate its strategy in this changing era and will have to ask itself three questions.  Which aspects of the problem we now solve for customers will customers use AI to solve themselves?  Which types of expertise that we currently possess will need to evolve most if we are to remain ahead of AI’s capabilities?  And which assets can we build or augment to enhance our ability to stay competitive as AI advances?

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Topics:  Strategy, Business Model, AI, Competitive Advantage

Don’t Get Out of the Points Game, Says the Points Guy

By Claire Ballentine | Bloomberg Businessweek | November 21, 2024

3 key takeaways from the article

  1. Brian Kelly, also known as the Points Guy, built a small empire out of working the system, so it shouldn’t be a surprise that he’s also an expert at gaming restaurant reservations. 
  2. When the former Morgan Stanley recruiter started the Points Guy blog in 2010, his audience was the equivalent of extreme couponers, but for hotels and flights instead of bulk groceries. “Points people”—competitive, slightly nerdy, obsessive about getting the best deals and eternally online—soon began flocking to the site, which made money through affiliate marketing. 
  3. Next came an app and a points valuation calculator. In more than a decade at it, Kelly has grown his hobby into a website, online community and consulting business.  According to him he started with a $10 domain and a WordPress blog, so to be what it is now and to still be profitable and growing is incredible.

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Topics:  Entrepreneurship, Creativity, Innovation, Credit Cards

Four Leadership Loads That Keep Getting Heavier

By Melissa Swift | MIT Sloan Management Review | December 02, 2024

Extractive Summary of the Article | Listen

3 key takeaways from the article

  1. No one ever said leadership was easy. But in recent years, as with so many jobs, being a leader has, in fact, become harder. 
  2. Four specific areas that most leaders care about have genuinely become more difficult in the past few years: hyping up their teams, getting to the truth, focusing on strategy, and staying sane themselves.
  3. Consistently appreciate the humans around you. Be a mensch.  Think like a data scientist — not in the sense of learning to code or performing advanced analytics, but in the sense of asking better questions of information, in a structured and methodical way.  Strategy requires space, so give strategic work some oxygen. And  leaders need to pick their battles at work, focusing on what must get done, and draw their boundaries alongside work — defending what cannot be sacrificed in their lives in the name of getting their must-do’s done.

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Topics:  Leadership, Teams, Performance, Work-Life Balance

7 Tips to Build a Winning Brand That Stands Out From the Crowd

By Peter Economy | Inc Magazine | November 29, 2024

2 key takeaways from the article

  1. If you want to stand out in a sea of sameness as an entrepreneur, it’s imperative that you bring a distinct brand to the market. And if you want to do that, you need to deliver a better narrative—a better story—than your competitors. Your brand story must speak directly to your target market and provide something unique and compelling that sets you apart.
  2. Seven keys to creating and growing a distinct brand that’s built to last are:  engage with your audience, stay ahead of trends, build your own audience, know how your financials work, learn how to sell, surround yourself with positivity, and take care of yourself—and your team.

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Topics: Entrepreneurship, Creativity, Teams, Branding

6 Steps to a Simple and Effective Content Strategy

By Rachel Sterling | Edited by Micah Zimmerman | Entrepreneur Magazine | December 4, 2024

Extractive Summary of the Article | Read | Listen

3 key takeaways from the article

  1. That’s a lot of marketers creating a lot of content, and for good reason. Content marketing can increase customer lifetime value by up to 70%. When it seems like everyone is playing the game, how can you get your content to stand out?
  2. The key is to be ultra-selective. And, as always, it starts with your audience. You want to develop a deep understanding of who you’re serving and then tailor your output to their distinct needs. 
  3. Strategy can be intimidating, but the steps to developing strategic content are fairly straightforward. It’s all about getting clear on the outcome you’re driving toward — and working backwards from there: define your goals, research target audiences, audit existing content, select the right content formats, create a content calendar, and adopt a new web address. It’s not rocket science — but it’s amazing how frequently brands publish materials without considering these basic questions. Don’t be one of them!

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Topics:  Entrepreneurship, Marketing, Content Marketing