Chaotics
The Business of Managing and Marketing in the Age of Turbulence
Philip Kotler, John A. Caslione
- 224 pages
- English
- ePUB (mobile friendly)
- Available on iOS & Android
Chaotics
The Business of Managing and Marketing in the Age of Turbulence
Philip Kotler, John A. Caslione
About This Book
We have entered into an entirely new era, an age of increasingly frequent and intense periods of turbulence in the global economy. Unlike past recessions, today's crises have precipitated a need for businesses to develop a new mindset, one that takes into account intermittent periods of disturbance, allowing them to thrive while under the constant threat of chaos. Chaotics presents a revolutionary set of guidelines designed to help businesses: • detect sources of turbulence • prepare scenarios • predict resulting vulnerabilities and opportunities • develop responses to ensure long-term resilience and success • avoid risk while advancing the interests of the company • build flexibility into the balance sheet • price strategically • adjust products to meet new customer values • and more. Complete with metrics and measurements, Chaotics outlines a powerful new system for managing waves of uncertainty affecting customers, employees, and other stakeholders. In this climate of increased turbulence, no organization can survive with less.
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CHAPTER ONE
The World Has Entered
a New Economic Stage
From Normality to Turbulence
Prosperity is a great teacher; adversity a greater.—William Hazlitt (1778–1830)
RELATIVE CERTAINTIES | LIKELY IMPACT |
A global multipolar system is emerging with the rise of China, India, and others. The relative power of nonstate actors—businesses, tribes, religious organizations, and even criminal networks—also will increase. | By 2025, a single “international community” composed of nation-states will no longer exist. Power will be more dispersed, with the newer players bringing new rules to the game, while risks will increase that the traditional Western alliances will weaken. Rather than emulating Western models of political and economic development, more countries may be attracted to China’s alternative development model. As some countries become more invested in their economic well-being, incentives toward geopolitical stability could increase. However, the transfer is strengthening states like Russia that want to challenge the Western order. Shrinking economic and military capabilities may force the United States into a difficult set of tradeoffs between domestic versus foreign policy priorities. |
The unprecedented shift in relative wealth and economic power, roughly from West to East now under way, will continue. | |
The United States will remain the single most powerful country but will be less dominant. | |
Continued economic growth—coupled with 1.2 billion more people by 2025—will put pressure on energy, food, and water resources. | The pace of technological innovation will be key to outcomes during this period. All current technologies are inadequate for replacing traditional energy architecture on the scale needed. |
The number of countries with youthful populations in the “arc of instability” will decrease, but the populations of several youth-bulge states are projected to remain on rapid growth trajectories. | Unless unemployment conditions change dramatically in parlous youth-bulge states such as Afghanistan, Nigeria, Pakistan, and Yemen, these countries will remain ripe for continued instability and state failure. |
The potential for conflict will increase, owing to rapid changes in parts of the greater Middle East and the spread of lethal capabilities. Terrorism is unlikely to disappear by 2025, but its appeal could lessen if economic growth continues in the Middle East and youth unemployment is reduced. For those terrorists that are active, the diffusion of technologies puts dangerous capabilities within their reach. | The need for the United States to act as regional balancer in the Middle East will increase, although other outside powers—Russia, China, and India—will play greater roles than today. Opportunities for mass-casualty terrorist attacks using chemical, biological, or less likely, nuclear weapons, will increase as technology diffuses and nuclear power (and possibly weapons) programs expand. The practical and psychological consequences of such attacks will intensify in an increasingly globalized world. |
KEY UNCERTAINTIES | POTENTIAL CONSEQUENCES |
Whether an energy transition away from oil and gas—supported by improved energy storage, biofuels, and clean coal—is completed during the 2025 time frame. How quickly climate change occurs and the locations where its impact is most pronounced. Whether mercantilism stages a comeback and global markets recede. | With high oil and gas prices, major exporters such as Russia and Iran will substantially augment their levels of national power, with Russia’s GDP potentially approaching that of the United Kingdom and France. A sustained plunge in prices, perhaps underpinned by a fundamental switch to new energy sources, could trigger a long-term decline for producers as global and regional players. Climate change is likely to exacerbate resource (particularly water) scarcities. Descending into a world of resource nationalism increases the risk of great power confrontations. |
Whether advances toward democracy occur in China and Russia. | Political pluralism seems less likely in Russia, absent economic diversification. A growing middle class increases the chances of political liberalization and potentially greater nationalism in China. |
Whether regional fears about a nuclear-armed Iran trigger an arms race and greater militarization. Whether the... |