Dated: 3 March 2004
At a recent U/Tech Memorial lecture for the late Lloyd Edwards, the keynote speaker, AIC Senior Vice-President Peter Lawson delivered the following anecdote, which while by no means new, is very instructive:
Two men, out on a “routine hiking trip” [complete with boots and backpacks] are walking together in the woods, when one asks his colleague, ‚Are you sure there are no bears in these woods‚ to which the friend replies ‚I‚m sure.
Not convinced, the first man repeats, ‚Are you sure there are no bears in these woods?‚ The reply is the same. ‚Yes, I‚m sure.
Still not satisfied, the first friend asks again, “Are you really sure there are no bears in these woods?” His patience stretched beyond the limit, the other man bellows ”There are no bears in these woods!!”
The man‘s outburst is followed by a blood-curdling growl, and the two turn to be confronted by the largest, most fearsome bear either of them has ever seen. Terrified, they take off, with the bear giving chase.
Amid the hasty retreat, the second man notices that his friend has stopped to remove his boots. Flabbergasted, he asks ‚Are you crazy?’ How can you be doing that now!’
The first man replies. ’Its simple. I don’t have to outrun the bear. I just have to outrun you!’
In this allegory, the “woods” represent the global marketplace, and the “bear” represents a hostile force or condition. The two guys? Well, either one could be you or your business. The question is, which one will you choose?
In today‘s business landscape, there are lots of bears, and the situation isn‘t likely to get any safer. Nothing has as yet been formally agreed on, but some form of the proposed Free Trade Area of the Americas (FTAA) will come into effect in 2005 or soon
thereafter. On a smaller scale, the Caribbean Single Market and Economy continues to lurch towards commencement in 2006. Similar sweeping regulatory arrangements are also due in short order for Customs and Excise and for several service sector operations
(New standards for accounting practices are already coming into effect). It‘s no longer a matter of if, but of how will we respond.
It‘s one thing to put yourself in position, as the second man did, to outrun, or out maneuver your “rival” but to return to the anecdote, what if either man (or ideally, both) had taken a moment albeit under pressure to look in their backpacks and
see if there’s anything in there that could be used to either pacify or frighten off the predator.
For that matter, how much do we know about the “bears” that roam this global business landscape that we operate in? Is there anything we know that would help us to minimize or eliminate any potential threat? Importantly, is there anything our competitor
knows [that we don’t] that could similarly be useful?
As is pointed out by international consultants, companies today are learning to compete under what is being called “strategic interdependence”. As the extract “Global Gamesmanship” featured in this issue asserts, the whole competitive sphere is being
radically re-worked, like a chessboard going from uni-dimensional to multi-dimensional. [or closer to home, think of the classic Ludo board]. Moves made by any one player are both influenced by and have impact on, the moves made by the other players.
Of course, there are arenas in which the levels of such strategic interdependence have not yet been as clearly defined, in other words, where the men in the woods are simply trying to outrun each other. We believe the still tumultuous mobile telecom market
in the region, which is our Cover Feature this month, qualifies as such. An all-out battle for market share is about to escalate, even as the players look to both expand their reach through the Caribbean Basin and continue the upgrade of their wireless data
services. While the market as it stands is far from mature, it’s inarguably in transition.
Wealth: often talked about, but not so often addressed. In this issue, we commence a three-part series titled “Partners in Wealth Creation” examining the role and function of the financial sector, which is in its own transitionary period: moving from
being a mere repository of capital to facilitating and encouraging the creation of wealth [and not just paper value] for its client base.
Noted wealth teacher Mike Murdoch, in his series “Secrets of the Journey” (Vol. 6) advises, “Look at every situation long enough to really see it.” [Emphasis ours]. The subtlety and complexity of competitive positions in business has changed dramatically
and only those who can focus on achievable goals, without being excessively distracted by sudden changes in circumstance (whether hostile or favorable). If you make a point of knowing your way around the woods and the creatures youfre likely to face, the
journey will be much more satisfying.
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