...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...
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...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...
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...McKinsey Global Institute November 2013 QE and ultra-low interest rates: Distributional effects and risks Discussion paper 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 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 five themes: productivity and growth; the evolution of global financial markets; the economic impact of technology and innovation; urbanization and infrastructure; and natural resources. Recent research covers job creation, infrastructure productivity, a new wave of disruptive technologies, trends in resource markets, and the shifting global company landscape. MGI is led by McKinsey & Company directors Richard Dobbs, James Manyika, and Jonathan Woetzel. Yougang Chen, Michael Chui, Susan Lund, and Jaana Remes serve as MGI principals. Project teams are led by a group...
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...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;...
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...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;...
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...on to get ahead of what comes next. What to do about it Place greater emphasis on proximity to both demand and innovation while: • Making location decisions that balance economies of scale against the growing diversity of tastes within and across global markets Building supplier ecosystems that combine technical expertise with local domain and market knowledge Developing the people and skills needed to make the most of technological advances across the organization • • © Bruno Ehrs/Corbis 2 When offshoring entered the popular lexicon, in the 1990s, it became shorthand for efforts to arbitrage labor costs by using lowerwage workers in developing nations. But savvy manufacturing leaders saw it as more: a decisive change in globalization, made possible by a wave of liberalization in countries such as China and India, a steady improvement in the capabilities of emerging-market suppliers and workers, a growing ability to transfer proven management processes to new locales, and increasingly favorable transportation and communications economics. Something of equal moment is occurring today. As we settle into a “new normal” catalyzed by the global financial crisis, the ensuing recession, and an uneven global recovery, traditional arbitrage...
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...market The foreign exchange (currency) market Globalisation of financial markets The global economy has undergone through a number of structural changes in the past few decades: Real changes liberalization of product and factor markets, allied with technological developments increased output in many countries and particularly in the previously centrally planned economies Monetary changes a global commitment to maintain low rates of inflation after the boost in inflation in the ’70s Financial changes growing completeness and integration of world financial markets, fueled by deregulation and technology 3 Globalisation of financial markets Realities of global financial markets: Short-term nature of capital flows High turnover in financial markets Multiplicity of agents High number and complexity of instruments High speed with which market participants react to new information Global reach of financial institutions Implications: Growing integration of financial markets, including emerging markets Better financing of current account deficits Financial contagion risks 4 How developed are the world’s financial markets? The world’s financial assets totalled $196 trillion at end 2007 and were expected to reach $214 trillion by the end of 2010 The value of the world’s financial assets exceeded the global GDP by a factor of 3 – this is an unprecedented degree of financial depth The financial crisis...
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...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...
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...Anaso has developed an app that helps diabetes patients take charge of their condition. As the product took off in his home market of South Africa, patients in Nigeria and Kenya learned about it through Facebook and Twitter—and today two-thirds of its subscribers come from across the broader African continent and the Middle East. Globalization was once driven almost exclusively by the world’s governments, large multinational corporations, and major financial institutions. But now—thanks to digital platforms with global reach—artisans, entrepreneurs, app developers, freelancers, small businesses, and even individuals can participate directly. New research from the McKinsey Global Institute (MGI) uses novel data to analyze the extent of the connections and their economic impact. The biggest of these online platforms have grown to a scale never before seen (Exhibit 1), and their users are increasingly international. Individuals from Canada to Cameroon can forge their own global connections, whether for business, personal ties, entertainment, education, or simple curiosity about the...
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...McKinsey & Company is a worldwide management consulting firm. It conducts qualitative and quantitative analysis in order to evaluate management decisions across the public and private sectors. Widely considered the most prestigious management consultancy, McKinsey's clientele includes 80% of the world's largest corporations, and an extensive list of governments and non-profit organizations. More current and former Fortune 500 C.E.O.'s are alumni of McKinsey than of any other company, a list including Google C.E.O. Sundar Pichai, Facebook C.O.O. Sheryl Sandberg, Morgan Stanley C.E.O. James Gorman and many more. McKinsey publishes the McKinsey Quarterly, funds the McKinsey Global Institute research organization, publishes reports on management topics, and has authored many influential books on management. Its practices of confidentiality, influence on business practices, and corporate culture have experienced a polarizing reception. McKinsey was founded in 1926 by James McKinsey in order to apply accounting principles to management. Mr. McKinsey died in 1937, and the firm was restructured several times, with the modern-day McKinsey & Company emerging in 1939. Marvin Bower is credited with establishing McKinsey's culture and practices in the 1930s based on the principles he experienced as a lawyer. The firm developed an "up or out" policy, where consultants who are not promoted are asked to leave. McKinsey was the first management consultancy to hire recent college graduates, rather...
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...McKinsey was founded in 1926 by Professor James (“Mac”) McKinsey as a ‘accounting and engineering advisory’ company. In 1932, Marvin Bower was joined at McKinsey and his vision was one focused on issues of importance o top-level management, adhering to the highest standards of integrity, professional ethics and technical excellence, able to attract and develop young men of outstanding qualifications, and committed to continually raising its stature and influence. And his mission was to make the firm served its clients superbly well. For few years after founded, McKinsey’s growth engine seems to stall for many reason like economic turmoil of the oil crisis and appearance of new focused competitors like Boston Consulting Group (BCG). To solve this problem the committee had result and recommendations. One of the recommendations was to reduce MGM ratio from 7 to 1 and became “T shape” consultant, a firm that supplemented a broad generalist perspective with an in-depth industry or functional specialty. When Ron Daniel has become a Managing director for McKinsey, he faced aggressive challenge from its competitors and McKinsey began to losing its clients. His first move was to more develop its employee skill as a consultant. He also made industry based clientele sectors and leveraging the firm’s functional expertise. He assembled working groups to develop knowledge in two areas, strategy and organization. Fred Gluck wanted to bring an equally stimulating intellectual to McKinsey....
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..."The rise in disposable income and the change in government policy has created an environment for global companies to enter the Chinese market." we will focus on luxury products Question - How has the income levels changed in the Chinese economy and what factors contribute to the change in the income levels. Also what factors (from an income standpoint) should western firms keep in mind when deciding to serve the Chinese market. As per the Mckinsey Global Institute (MGI), in 1985, 99 percent of the household lived on income less than 25,00 reminbi, or $3019 per year. An estimated 116 million people in china were living less than $1 a day, by 2004 this number has been by 53 percent to just under 54 million. This has been a historical achievement in one generation. Chinas pro-market reforms and integration into the global economy has enabled China to achieve such success. As real average disposable income for households has grown 3.2 times over the past 20 years to 25,348 renminbi today, china has developed a structure of distinct income levels and the rise of the middle class. Even though there remains a huge income gap between the rural and urban population. The disposable income for people living in the rural and urban population is increasing. The diagrams on the right depict the rise in their disposal income level in urban and rural households. Due to the rapid pace of urbanization in China, the annual disposable income per capita for urban households is climbing...
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...Long-term Finance and Economic Growth Working Group on Long-term Finance The views expressed in this report are those of the Working Group on Long-term Finance and do not necessarily represent the views of the individual members of the Group of Thirty. ISBN 1-56708-160-6 Copies of this paper are available for $49 from: The Group of Thirty 1726 M Street, N.W., Suite 200 Washington, D.C. 20036 Tel.: (202) 331-2472 E-mail: info@group30.org; www.group30.org Long-term Finance and Economic Growth Published by Group of Thirty© Washington, D.C. 2013 Table of Contents Abbreviations ............................................................................................................................................................................... 5 Glossary .............................................................................................................................................................................................6 Foreword ..........................................................................................................................................................................................8 Acknowledgments ..................................................................................................................................................................10 Working Group on Long-term Finance ................................................................................................................
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...CHAPTER 2: LITERATURE REVIEW 2.1 Introduction: This chapter is a combination of the relevant literature on this subject area i.e. the impact of middle class on the real estate sector. The chapter links to the Research Objectives and contains secondary analysis and descriptions, which may provide a platform for later evaluation. According to a research by Deutsche Bank, World Bank, McKinsey and CNN- IBN(Sources should be with year example So Deutsche Bank,(Year) ), the total Indian middle class ranges from 300 million to approximately 360 million people; this comprises less than 30 percent of the total population of 1.2 billion (Please refer Chart 1 below). For multi-national corporations and domestic real estate companies, the middle class in India thus presents significant business opportunities. Over the last several years, the overall growth in the real estate sector has burgeoned and this explosion is primarily due to the aspirations of the lower middle, middle and upper middle class of India. Apart from this a whole new range of investment options in the real estate sector has increasingly gaining acceptance. However, keeping in mind the exposure and increasing needs and desires of the middle class, not many significant efforts have been made towards educating the masses. Dire improvements are needed to match the needs of the growing middle class and educate the masses about the real estate sector, which primarily is an unorganized sector. In order to ensure that the...
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...Macroeconomic Assessment For Internet Industry Staci Sulhoff BusA 6900 – Strategic Management 5 September 2015 Author Note Contact Information: Staci Sulhoff; Voice: 706.878.9802; email: ssulhoff0627@lions.piedmont.edu Macroeconomic Assessment For the Internet Industry The face of the Internet has changed vastly since its inception approximately 30 years ago. From the humble beginnings of a network for universities in the early 1980’s came the ability for connecting multiple networks and the need for Internet Service Providers (ISP) in the late 1980’s. To say that this industry has had exponential growth is an understatement. The invention of the World Wide Web brought us into the modern Internet. No longer is it a solely a means of transporting messages. In the 1990’s it became widely known as the information superhighway. Vast amounts of information combined with the development of the search engine made the Internet a powerful resource. Meanwhile, exponential technology developments made it possible for virtually all households to own a personal computer. In the mid 1990’s electronic retail, now commonly called ecommerce, began to take hold. Companies like Amazon and EBay developed their online shopping retails with limited products and the prediction that online retail would have a growth rate of 2000% (Stone, 2013). Online purchasing continued to grow and develop in everyday consumer transactions like online banking, purchases, and video...
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