Latest news with #businessleaders
Zawya
39 minutes ago
- Business
- Zawya
South Africa: Business Talk Season 13
Business Talk Season 13 with Michael Avery is the best podcast to get the latest insights into the South African business sector. Season 13 of Business Talk is coming soon, giving you the insights you need to stay attuned to the pulse of South African business. This new season of the country's premier business podcast will be hosted by popular media personality Michael Avery. Avery will interview an impressive selection of South Africa's top business experts and leaders, who will cover topics like AI, retail, business software, and much more. Thanks to its quality of guests, excellent host, and informative discussions, Business Talk Season 13 will be essential viewing for anyone interested in the South African business sector and economy. Watch Season 13 Business Talk season 13 will be available on YouTube, Facebook, Spotify, and the dedicated Business Talk website. To get your executives featured on Business Talk Season 13, contact the BusinessTech marketing team.
Times
11 hours ago
- Business
- Times
Labour's tax strategy under fire as Reeves defends fiscal rules
The chancellor has defended Labour's record as the party of business and its fiscal rules after controversial tax rises, saying the government had stabilised the economy and enabled interest rate cuts. Rachel Reeves told The Times CEO Summit that the government had achieved its 'number one job' to return economic stability after the 'turbulence' of the 'previous decade'. The contentious decision to raise employers' national insurance contributions in October's budget provoked a sharp backlash from business leaders, who had been courted by senior Labour figures in the run-up to July's general election. Bosses have since warned of hiring and investment cuts, while the decision is still being felt in the jobs market and in sentiment.
Forbes
19 hours ago
- Business
- Forbes
Business Leadership Development In An Uncertain Economy
Identify key risks to the business. Business leaders know the future is uncertain. The sharpest ones sketch out contingency plans for the things that could go wrong at the company. They could be external changes, such as recession, technological change, different social attitudes, new regulations, or upstart competitors. Some of the risks are internal: a critical machine goes down, the sales manager quits, or a supplier cannot deliver. The good business leader also knows that luck happens. Some external change could help the company, and the internal operations could click like they never have before. With inherent uncertainty, the business leader sketches out contingency plans for both downside risks and upside opportunities. The leader probably thinks about contingencies in the shower, in the car and listening to a boring report. But it's not enough for the top executive to think through possibilities, unless it's a one-person organization. The other people at the company, who will implement the various contingency plans, need to participate in the exercise. The best way to start is to ask the key managers. Ask them what the risks and opportunities will be. When the boss brings up a subject, like the possibility of recession, subordinates will simply nod their hods. But if the leader asks each manager to come to the meeting with a list of risks and opportunities, they need to stop and think for themselves. The team can sort through the various issues and prioritize them. The next step is to sketch out a contingency plan for each uncertainty. 'Sketch' is the key concept. Detailed plans such as would go into a three-ring binder will likely be out of date by the time the issue comes to pass. And many risks never occur, so too much time spent planning will be wasteful. However, sketching out contingency plans for risks and opportunities provides two key advantages for the business. First, plans developed in advance will be implemented more quickly. That can make all the difference in the world. Executives at companies that go bankrupt are rarely surprised. They usually see their problems developing, but delay taking action. Developing a contingency plan ahead of time really helps. The second benefit to contingency plans comes from the relaxed atmosphere in which they are created. Recessions, for example, trigger great fear and panic. Decisions usually are not best when made in a highly emotional state of mind. But when people can kick around an idea in a relaxed atmosphere, they can prioritize the business's long-term goals and corporate values. The managers who will be charged with implementing the contingency plans must own them. First, they should not be surprised. The top leader should not pull out a secret plan and direct the subordinate to implement it. Second, the managers have to believe in the plan. After involving them in contingency plan development, they may not concur with every element, but they will have seen how the plan was developed and the reasons for the tradeoffs chosen. The managers responsible for portions of the continency plan will be able to communicate with rank and file employees the basis for the plan: why it was developed and what values it tries to maintain. That will help employees better execute the plan. Similarly, when the company's suppliers and customers are impacted by the contingency plan, their company contacts will be able to communicate the reasons for the plan. When the day comes to implement a contingency plan, the one sheet of paper must be dusted off and reviewed. Some important aspects of the business may have changed, and the person who will implement the plan needs the opportunity to tell the CEO in what way the plan is obsolete. Usually just a quick adjustment is needed, but occasionally a major revision will be called for. Like any business plan, it will not work out exactly as envisioned. The department manager who must execute the plan will—hopefully—see the change that is needed. Importantly, that manager will understand the goals of the plan, including maintaining the company's vision and values. Modifying a plan goes more smoothly when the foundations of the plan are well understood. After the contingency plan has been executed, it's time to celebrate—and evaluate what was learned. That provides a natural basis for developing the next set of contingency plans.
Forbes
20 hours ago
- Business
- Forbes
Why Service Prices Are Rising While Goods Stay Flat Amidst Tariff News
Why Service Prices Are Rising While Goods Stay Flat Amidst Tariff News President Trump's tariffs were expected to drive widespread price increases across the U.S. economy. Just months into 2025, that prediction has proven only partially correct. Consumer prices rose 2.4% in May, up slightly from April's 2.3% increase. However, the data reveal an unexpected split in how different sectors are responding to tariff pressures. Goods that economists anticipated would see significant price hikes are instead declining. The service industry experienced a markedly different reality. Federal Reserve data shows that nearly half of service-oriented companies have already passed tariff-related cost increases to customers, compared to just one-third of goods-producing businesses. Manufacturers stockpiled goods before tariffs took effect, allowing them to maintain current pricing using pre-tariff inventory. Service businesses, however, cannot stockpile labor or defer rising operational costs, forcing them to adjust prices. For business leaders, this split presents both opportunities and challenges as they navigate pricing strategies in an environment where consumer demand remains cautious and economic uncertainty persists. May's Consumer Price Index data reveals a striking disconnect between predicted and actual price movements in goods-heavy sectors. Categories economists identified as most vulnerable to tariff pressures posted unexpected declines instead of the widely anticipated increases. New vehicle prices dropped 0.3% in May, while used cars and trucks fell 0.5%. Apparel costs decreased 0.4%, and furniture prices recorded their steepest decline since December at 0.8%. These sectors depend heavily on international supply chains and were positioned to absorb the first wave of tariff-related cost increases. The price stability stems from proactive business strategies implemented months before tariffs took effect. Companies across manufacturing sectors accelerated purchasing schedules and expanded warehouse capacity to secure inventory at pre-tariff costs. This forward-thinking approach created a pricing cushion that continues to shield consumers from immediate cost increases. Current inventory levels reflect these advanced purchases, enabling retailers to maintain competitive pricing while competitors exhaust similar stockpiles. The strategy has proven particularly effective in the automotive and consumer goods sectors, where longer product cycles allow for extended inventory turnover periods. Energy costs reinforced the downward pressure on overall goods pricing, declining 1% monthly as gasoline prices retreated. Even sectors showing price increases, including major appliances and automotive parts, registered only modest gains, insufficient to counteract broader deflationary trends across goods categories. This protection mechanism has clear limitations, though. Industry analysis suggests most companies built three-to-six-month inventory buffers, meaning tariff impacts will likely surface in late summer or early fall as stockpiled goods are depleted and replacement inventory reflects current tariff rates. While goods-producing companies benefit from inventory buffers, service providers have to adjust prices immediately when costs rise. Nearly half of service-oriented companies' rising prices reflect the sector's inability to defer cost increases through stockpiling strategies. Service businesses face real-time cost pressures that cannot be warehoused or delayed. Prices for services rose 3.7% in September 2024 from a year prior, according to the personal consumption expenditures price index, while goods prices fell 1.2% during the same period. Labor represents the primary expense driver, and wage increases translate directly into operational costs without the cushioning effect available to manufacturers. This constraint has created persistent inflationary pressure across multiple service categories, even as goods prices decline. Restaurant operators exemplify these challenges. Food services inflation reached 3.6% in September, driven largely by mandatory wage increases and competitive labor markets. Chains including McDonald's and Chipotle have implemented menu price adjustments to offset rising labor costs, with executives indicating continued pressure from wage inflation throughout the year. The insurance sector demonstrates similar patterns, with household insurance premiums climbing 10.1% annually and auto insurance rising 6%. Factors such as increased storm damage and higher repair costs could be driving factors, as well as the immediate nature of claim settlements, which prevents the delayed pricing adjustments possible in goods industries. Housing costs, particularly rental markets, show one of the most pronounced service inflation rates at 5.1% annually. Unlike manufactured products, housing services reflect immediate market conditions with limited ability to smooth cost increases over time. Travel services face comparable pressures, with air transportation costs up 4.1% as operational expenses rise in real-time. The disconnect between tariff expectations and actual price increases reflects a broader dynamic of consumer wariness and business reluctance to test pricing power. Recent McKinsey research reveals that consumer sentiment dropped 32% in May following tariff announcements, creating a cautious spending environment that constrains retailers' ability to implement price increases. Survey data shows 91% of consumers have heard about tariffs in news coverage or discussions, with tariff policies ranking as the second-highest consumer concern after inflation. This heightened awareness has translated into behavioral changes, with more than 60% of consumers reporting they have either altered spending habits or expect to do so in response to tariff announcements. One thing to note is that consumer responses vary significantly by demographic group. Lower-income households show greater sensitivity to potential price increases, with these consumers 13 percentage points more likely to switch to lower-priced brands compared to those earning over $100,000 annually. Generational differences also emerge, as Gen Z and millennial consumers express a higher likelihood of changing spending patterns compared to baby boomers. These shifting consumer behaviors create a challenging environment for retailers considering price adjustments. Half of consumers indicate they plan to delay purchases in discretionary categories, including electronics, accessories, and dining out. This demand sensitivity explains why businesses remain hesitant to implement tariff-related price increases, even when facing higher input costs. While unemployment remains steady at 4.2%, industries exposed to tariffs face mounting pressure that could reshape employment patterns across sectors. Companies relying on imported materials, from steel to semiconductors, face margin compression that typically leads to hiring freezes or workforce reductions. A furniture manufacturer dependent on imported lumber may reduce shifts to offset rising costs, while auto parts suppliers grappling with pricier steel imports could scale back expansion plans. However, tariff policies create winners alongside losers. Domestic industries less reliant on foreign inputs, particularly in the energy and technology sectors, may benefit from reduced international competition. High-skill workers in finance and technology may exhibit greater resilience to trade disruptions, while low-skill manufacturing and logistics workers bear disproportionate impacts, including reduced hours and potential job losses. Consumer inflation expectations reveal conflicting signals that complicate economic forecasting. A survey conducted by the University of Michigan shows Americans expect prices to increase 6.6% over the next year, the highest reading since 1981, suggesting deep-rooted concerns about future price stability. However, Federal Reserve Bank of New York data presents a contrasting narrative, with consumers expecting lower inflation following the Trump administration's tariff pullback in April, which highlights the sensitivity of expectations to policy announcements rather than actual price movements. The timing of when tariffs raise prices will determine whether consumers expect more inflation ahead, although economists anticipate that tariff-related price increases will become more pronounced during summer months as inventory buffers are exhausted. The Federal Reserve may increasingly factor in consumer sentiment and behavior when setting policy. With evidence that cautious consumer spending is helping to curb inflation, the Fed could scale back aggressive rate hikes and rely more on forward guidance and market signals, especially if wage gains remain modest and employment remains strong. Meanwhile, President Trump has renewed calls for rate cuts, urging the Fed to slash rates by a full percentage point if price pressures ease further, a move he believes would jumpstart growth. However, Fed officials have warned that tariff-driven inflation risks could yet prompt them to maintain the current rates. As long as tariffs remain in place, the Fed appears likely to maintain its cautious stance, watching both consumer psychology and trade policy for signals on future rate moves. The tariff story of 2025 has unfolded differently than expected. Manufacturers stockpiled inventory to keep prices stable, while service companies raised prices immediately. This created unusual inflation where goods became cheaper as services grew more expensive. Consumer caution and business reluctance to raise prices delayed anticipated increases. However, as companies exhaust their inventory buffers, tariff-related costs will likely reach consumers. Business leaders must recognize these timing differences across sectors to navigate an unpredictable economic environment.
Zawya
a day ago
- Business
- Zawya
African Business Chamber (AfBC) announces 2025 African Business Awards in London
The African Business Chamber (AfBC) is proud to announce that the AfBC African Business Awards and Gala Dinner 2025 will be held on Thursday, 3 July 2025, in London. This prestigious annual event will celebrate the remarkable achievements of African businesses, entrepreneurs, and leaders across the UK and internationally. Now a highly anticipated annual event in the business calendar, the AfBC African Business Awards shines a spotlight on excellence, innovation, and impact among African and African diaspora-led enterprises. Honourees span key sectors such as finance, technology, trade, sustainability, healthcare, creative industries, and professional services. This year's edition will highlight individuals and organisations who have demonstrated exceptional leadership, made significant economic contributions, and shown a strong commitment to inclusive growth and sustainable development across Africa and the UK. Event Details: AfBC African Business Awards 2025 Date: Thursday, 3 July 2025 Venue: Millennium Gloucester Hotel & Conference Centre, Kensington and Chelsea, London, SW7 4LH Website: Award Categories Include: Top 100 Business Leader of the Year Entrepreneur of the Year Start-Up & New Business of the Year Technology & Innovation Excellence Healthcare Excellence Creative Industry Excellence Financial Services Excellence Professional Excellence African Women in Business (WIB) Excellence International Trade Excellence Social Enterprise Excellence Diaspora Excellence Business of the Year Business Excellence In addition, Special Recognition and Honorary Awards will be presented to individuals who have made out- standing contributions and demonstrated exceptional impact in their respective professions, as well as in the fields of international business, leadership, entrepreneurship, trade, social enterprise, and diaspora community development. The evening will feature keynote speeches, high-level networking, and cultural performances, showcasing the vibrant diversity and contributions of the African business community in the UK and globally. Eugene Nizeyimana, CEO of AfBC, stated: ' The African Business Awards are more than just a celebration— they're a platform to inspire, connect, and elevate African excellence. This year, we are excited to honour those leading meaningful change and shaping the future of business in Africa and its global diaspora.' Nominations: AfBC invites businesses, entrepreneurs, organisations and individual professionals to submit their nominations by emailing: info@ Registration: Deadline: Friday, 27 June 2025 Attendance: Advance registration required. Limited spaces available. Register Now to reserve your space and ticket to attend
