From Bloomberg
Mergers and acquisitions are surging, with $130 billion in takeover offers already announced this year. And enterprises from Microsoft Corp. to Volkswagen AG are readying plans to step up capital spending after companies have squirreled away a record amount of cash to protect against a new financial crisis.
“The animal spirits are coming back,” said Mark Zandi, chief economist for New York-based Moody’s. “This is going to be a good year” for capital expenditures and hiring.
http://www.bloomberg.com/news/2014-01-20/investor-animal-spirits-spread-to-companies-worldwide.html
We’ll deal with animal spirits in the next post. Sounds weird, but there’s a simple explanation. This post however is dedicated to why big companies see things differently than small companies and why they would take an expansive approach at exactly the time many prognosticators are projecting doom and destruction.
ELLIS Forecast
If you can survive 21st century chaos long enough to improve in every area you have compete control over, you’ll participate in the biggest, craziest boom ever. You don’t make the improvements, doom and destruction are waiting down the road. Our firm is forecasting an unusual future. On the one hand we are forecasting continued sluggishness for the overall economy. But on the other hand we are forecasting increasingly discriminating taste of most buyers. The ability to deal with this is what will separate sucesses from failures.
With two competitors on the same street in the same block of the same city with all the same outward appearances and the exact same pricing, why would one thrive and one face demise?
Because of their business model and their infrastructure …
Here’s the lay of the land …
@ Google & Wikipedia are the future of knowledge, not the university system.
@ Amazon & Apple are the future of business. They and Apple are busy spoiling your customers right now.
@ Apple is the future of innovation and customer loyalty.
With that competitive landscape staring you in the face, you have to adapt to survive. If you can’t compete on a level playing field with Amazon, your customers will be disappointed and you won’t survive. Amazon and Apple are making customers very particular. Who on this earth has never purchased anything from at least one of these behemoths?
If you haven’t already experienced the rising expectations, you will soon.
That’s where ELLIS comes in.
We are specialists in helping small businesses over this hump. Our business model will improve your business in every area you have complete control over. Our infrastructure helps make your internal workings hum like a Stradivarius.
Of course, you’ll have to do you share, sales, marketing and product or service development. But we can provide the time for you to concentrate on theses essential areas that you may have never concentrated before.
In the final analysis, Ellis makes it possible for you to leave your mark on the universe.
Why Davos Companies are Different from your Business
The companies that participate at Davos are all the biggest and best in the world, They already have their business model and infrastructure in place. The writing has been on the wall for a long time. The issue is all the other businesses in the world, especially wholly owned business in the United States. I can’t speak for other countries, but I suspect it will not be unlike the U.S. in this respect.
Most wholly owned business don’t think it’s worth the money to pay for consulting or for being on the cutting edge. While most very large businesses pay to have the world’s biggest consulting firms in their place of business on a daily basis.=; often more than one at a time. Whether they take their consultants’ advice, they want them around. This is one of the reasons few small wholly owned businesses break free of the crowd. 99.99% remain small and wholly owned for their entire existence.
- Infrastructure is key
- Google is the future of knowledge
- Amazon is the future of business
- Apple is the future of community
- Ellis is the future of professional services
- the way Americans do business is changing
- regulatory strangulation
- talent drought
- faster deliver
- better service
- more digital revolution
- tax increases (never cuts) as we socialism a try
- mind bogglingly complexity
- economic turbulence as Pacific Rim raises
- new and unexpected competition
- … from new and unexpected sources
- … often financed by government, ala Government Motors
- and, last but not least …
- greater opportunity for those who are ready
Are you ready?
bizztrategy @ Ellis CPA 