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Every month, Atradius brings you an up to the minute snapshot report on a range of export markets and key trade sectors. Our underwriters have a specialist view of the world economy – and the
industries that make that economy tick - that you won’t find in the general press coverage of events.
Even more importantly, our underwriters use their expertise and experience to look to the future. In each edition of Atradius Market Monitor you’ll find our outlook for a number of key market economies.
In this issue…
…we feature the following markets:
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Austria – with a spotlight on the paper and timber sectors
Italy
Norway
Canada
New Zealand
Brazil
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Special: Atradius Collections - Keep your cash flow healthy
The immediate outlook for key markets and sectors
Every month, Atradius brings you an up to the minute snapshot report on a range of export markets and key trade sectors. Our underwriters have a specialist view of the world economy – and the
industries that make that economy tick - that you won’t find in the general press coverage of events.
Even more importantly, our underwriters use their expertise and experience to look to the future. In each edition of Atradius Market Monitor you’ll find our outlook for a number of key market economies.
In this issue…
…we feature the following markets:
France – with a spotlight on the household appliances and dairy sectors
Austria – with a spotlight on the paper and timber sectors
Italy
Norway
Canada
New Zealand
Brazil
Japan
Special: Atradius Collections - Keep your cash flow healthy
UK government is in the middle of a decade-long recalibration as the public sector aligns to a lower level of public spending. While the first half of this decade has been characterised by austerity and cost reduction, the next half should focus on aspiration and redesign as public sector leaders across the UK shape a more focused state.
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- Worries over UK political risks eclipse economic risks for CFOs.
- Credit cheaper and more available than any time in seven years.
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The Q3 2014 survey took place between 8th and 22nd September.
118 CFOs participated, including the CFOs of 28 FTSE 100 and 40 FTSE 250 companies. The rest were CFOs of other UK-listed companies, large private companies and UK subsidiaries of major companies listed overseas. The combined market value of the 79 UK-listed companies surveyed is £462 billion, or approximately 20% of the UK quoted equity market.
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UK government is in the middle of a decade-long recalibration as the public sector aligns to a lower level of public spending. While the first half of this decade has been characterised by austerity and cost reduction, the next half should focus on aspiration and redesign as public sector leaders across the UK shape a more focused state.
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Risk appetite among the chief financial officers (CFOs) of the UK’s largest companies has reached a seven year high.
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- Worries over UK political risks eclipse economic risks for CFOs.
- Credit cheaper and more available than any time in seven years.
This is the 29th quarterly survey of chief financial officers and group finance directors of major companies in the UK.
The Q3 2014 survey took place between 8th and 22nd September.
118 CFOs participated, including the CFOs of 28 FTSE 100 and 40 FTSE 250 companies. The rest were CFOs of other UK-listed companies, large private companies and UK subsidiaries of major companies listed overseas. The combined market value of the 79 UK-listed companies surveyed is £462 billion, or approximately 20% of the UK quoted equity market.
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If you weren't able to but are interested in viewing the slides from the webinar, you can do so here.
In an unexpected move, Britain chose to Exit out of the EU on Friday. After the exit from EU, Britain has two options from a policy perspective; one is to deflate and second is to devalue. Due to this separation, Britain has lost their single market for British goods.
•The basic reason for Brexit apart from the concerns of immigrants outnumbering the locals was that, a lot of euro nations have a large amount of debt in government’s balance sheet. For the past 400 years, Europe fought lot of internal battles. After Second World War wisdom dawned upon them that there should be collaborations instead of battles, so eventually after 30-35 years, it led to the formation of the European Union. But after the Second World War incumbent governments in Europe realized that after the 400 years of war and keeping their population in to eternal stress and debt, they have to provide them more prosperous future. So apart from the all the fruits of industrial revolution that they have meaningfully enjoyed, they made lot of social welfare promises to their illiterate. Most of those people are retired today and at their old age, the government is legally bound to provide these benefits to them such as healthcare benefits, social security benefit and pension benefits etc.
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Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
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Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
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Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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The Effects Of Brexit On Tata Motors - Big Risk With Potential Opportunities
1. Through the storm
Transforming Tata Motor to sustain its unique
position and corporate value
Soraya | Colin| Sigga | Grace | Kyle
2. Situation analysis Impact Recommendation I Recommendation II
Situation analysis
2
Brexit - Why does it matter?
Before Brexit
Single Market - Seamless transfer of
goods, services, capital and resources in EU
countries + Norway, Iceland & Lichtenstein
1. No Tariffs
2. No Border Checks
3. Yes Just-In-Time Supply Chain
Competitive Advantage
After Brexit
Hard Borders - No more seamless flow of goods
and services, necessitates new trade deal
The “Backstop” - Stuck in Customs Union
means loss of control
1. Yes Tariffs
2. Yes Border Checks
3. No Just-In-Time Supply Chain
Loss of Competitive Advantage
1. Does JLR keep production in the U.K. or diversify their production base?
2. How else can we mitigate this risk and hedge against impending disaster?
CEO Must Decide
3. Situation analysis Impact Recommendation I Recommendation II
Impact
3
Disruption of the integrated supply chain and rise in tariffs will lead to a decrease in profits
Cross Border R&DSupply ChainCosts and Revenue
Restricted flow of human
capital
JLR’s expat professionals likely to find
that their qualifications for working in
the UK are no longer recognized
Skill shortage
90% of employers struggling to find
the talent they need, and expected to
get worse post-Brexit
Border checks on just-in-time
deliveries
Parts delays would force the
suspension of production at a cost of
£1.25 million per hour at each
production center
No technology solutions
The composition of each truck-
container will differ from day to day
and even hour to hour
High sales in Europe
Europe accounts for more than 25%
of JLR’s sales
Import and Export Tariffs
There will be a import tariff on the
600,000 parts from the EU and a 10%
tariff on all cars exported into the EU
Delays will lead to an extra cost of £60
million pounds a day
The restricted flow of people is expected
to trigger difficulties in R&D at the HQ in
London
Sales in the EU decrease by estimated
10% due to a rise in prices of JLR cars
Loss of £1.2 billion worth of net profit each year
4. Situation analysis Impact Recommendation I Recommendation II
Impact
4
Serious fluctuation on pound in the future creates significant uncertainty for Tata Motors
UK Government Interference Demand of pound in financial market
The Bank of
England has raised
interest rate from
0.5% to 0.75% as of
2 Aug 2018 (2nd time
in a decade)
Central Bank effort stabilizes the investment value of pound
GBP to USD
Demand from stock market can sustain the demand of pound
Major firms’
earnings may get
boosted when
converted back in
GBP, attracting
investors to purchaseLarge % of revenue of FTSE100 firms are from overseas
Uncertainty in the settlement term Unpredictable market reaction and sentiment
Unclear “divorce bill” affects the confidence on UK’s government and pound
A deal on Brexit payment by UK is estimated to
be at 13% of the total EU budget, upwards of
GBP 50 billion
The cost of a hard Brexit, with no transition deal,
may cost Uk as much as GBP 190 billion in
economic fallout by 2030
Occurrence of different events and how market reacts to them are hard to estimate
Pound value
responds actively to
multiple relevant
issues and events,
which are highly
unpredictable
5. Situation analysis Impact Recommendation I Recommendation II
Impact
5
Serious fluctuation on pound in the future creates significant uncertainty for Tata Motor
UK Government Interference Demand of pound in financial market
The Bank of
England has raised
interest rate from
0.5% to 0.75% as at
2 Aug 2018 (2nd time
in a decade)
Central Bank effort stabilizes the investment value of pound
GBP to USD
Demand from stock market can sustain the demand of pound
Major firms’
earnings may get
boosted when
converted back in
GBP, attracting
investors to purchaseLarge % of revenue of FTSE100 firms are from overseas
Uncertainty in the settlement term Unpredictable market reaction and sentiment
Unclear “divorce bill” affects the confidence on UK’s government and pound
A deal on Brexit payment by UK is estimated to
be at 13% of the total EU budget, upwards of
GBP 50 billion
The cost of a hard Brexit, with no transition deal,
may cost Uk as much as GBP 190 billion in
economic fallout by 2030
Occurrence of different events and how market reacts to them are hard to estimate
Pound value
responds actively to
multiple relevant
issues and events,
which are highly
unpredictable
In Long-term, the fluctuation on pound should be limited.
Yet, the short-term impacts are unlikely to be predicted, thus there is necessity to mitigate the uncertainty.
6. Situation analysis Impact Recommendation I Recommendation II
Recommendation II
Tata Motors can reduce its reliance on mature market by diversifying its product portfolio
6
Too high concentration of revenue from UK and EU (around 33% of revenue in FY 2018) magnify the Brexit influence on Tata MotorsCurrent issue
Modifying the regional focus to distributing to emerging markets through leveraging the mature product portfolio of commercial vehiclesSolution
• Offer the right car: Tata Motors can provide commercial
vehicles with outstanding emission control technologies
while maintaining superior performance of the vehicles
• Offer the car right: Tata Motors can offer distinctive terms
of deal for local government in exchange of continuous
partnership for long-term benefits
Tata Motor can gradually shift the business driver to emerging market and lower the reliance of mature markets which suffer from slower growth rate and geopolitical issues
Entry point Government Business
• Simplify the supply chain: Tata Motors can magnify its
scale of distribution channels in these markets to ensure
satisfactory communication and delivery of values
• Leverage on joint-venture: Tata Motors can seek for more
joint-ventures with local players to leverage on their
sensitivity and connection to local consumers
Developing countries with active development plan
(e.g. China – BRI initiative, India – Project Mausam)
Industry with heavy use of commercial vehicles
7. Appendix
Appendix
Navigator
7
Tata Motor
Manufacturing location
Revenue breakdown
Sales Volume
Income statement
Product catalog
Technology
Stock price
Pound value
Other
Trading volume of pound
Risk and Mitigation
Demand of commercial vehicles - China
Demand of commercial vehicles - World
Highlight of FTSE100 index
9. Appendix
Appendix
Tata Motor’s revenue breakdown (by geographic location)
*rupee in Crores
**A crore denotes ten million (10,000,000) in
the Indian numbering system
Back to Navigator
10. Appendix
Appendix
Tata Motor’s sales volume breakdown 2017 & 2018
The following table sets forth the Company consolidated total sales of Tata and other brand vehicles:
Back to Navigator
16. Appendix
Appendix
Risk and mitigation
Potential Risks Contingency Plan
Brand Dilution
Reputational loss following the exit
from Britain and loss of brand image
of being a purely British brand
Promotional Efforts
Marketing efforts to emphasize that
the brand is designed in Britain and
has a British heritage
Favorable UK Post-BREXIT
The UK manages to negotiate more
favorable free trade agreements
than the EU had in place
Fail to expand our focus
Failure to penetrate the emerging
markets and gain the support of the
local governments
Backup Strategies
Slow the momentum of
transitioning out of the UK market
Adopt a localization strategy
Adapt our product offerings to the
local market to increase the appeal
to the local consumers
Back to Navigator
19. Appendix
Appendix
Trading volume of pound
19
They have shown that based on information
taken from banks in the top trading centers,
the volume of forex trading in Britain has
grown by 23% to a daily average of $2.7
trillion, a record number.
In comparison, the US was up by less than
half, showing an increase of 11 percent to
$994 billion.
This shows that London is still proving to be
worthy investment hub for businesses
globally and will continue to dominate the
forex market.
Back to Navigator