Executive Summary by Ernst and Young Business Pulse 2013 Analysis

Executive Summary by Ernst and Young Business Pulse 2013 Analysis
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Executive Summary by Ernst and Young Business Pulse 2013 Analysis
This paper analyzes the executive summary purposed to help the top executives to create a strategic plan that includes risks and opportunities that would impact the stakeholders and other employees. It seeks to guide and create a positive mindset towards ensuring that the companies have the capacity to meet the emerging challenges along with risks. It also provides the executives with insights that will help them in exploiting the existing and emerging opportunities.
Financial risks have become common as most companies try to cut costs and prices to compete in shrunken mature markets and highly competitive growth markets. Mature markets are likely to grow slowly for many years to come; hence, pricing pressure will be a crucial risk. The pricing pressure risk is ranked first in 2015 and first in 2013. Cost-cutting and profit pressure are ranked second in both 2015 and 2013. They are significantly most impactful in mature markets. The market risk is ranked third in 2015 and 2013, and it is a result of emerging markets for growth. Macroeconomic risk is ranked fourth in 2015 and 2013. Sovereign debts and political shocks are among the top 10 risks that they face (Ernst & Young global limited, 2013).
Additionally, expansion of the government’s role is a significant risk that many company’s faces. Government intervention can be aggressive since it includes expropriation risk and resource nationalism where they tighten regulation in the finance sector. Governments have an increasingly active role in a host of industries in rapidly growing markets. The stakeholders’ confidence is impacted by government intervention. Also, emerging technologies are a risk faced by innovative ind...