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Thursday, 06 May 2010 11:26 |
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 A hitherto unknown volcano in a small country like Iceland has changed the way we view business risk forever. The global impact of this phenomena has already been estimated to have exceeded that of the 9/11 attacks in the USA. Even business in the Border Kei has been affected. For example parts for motorcars which normally ship in 24 hrs from European countries were delayed by over a week or more as globally airlines tried to move the backlog. Our local fresh produce destined for European markets has also been affected with some producers unable to fly their wares to Europe. In some cases accommodation bookings were not taken up but the gaps were apparently filled by stranded passengers who were unable to return to Europe. Some commentators point to this as being one of the downsides to globalisation. Maybe the anti-globalisation lobbyists do have a point.
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In his book “The Tipping Point” Malcolm Gladwell provides great insight into why modern change happens the way it does. He makes the point that little causes can have big effects and that change happens not gradually but at one dramatic moment. This is referred to as the tipping point. His observations and analysis are hugely insightful and his book contains many examples that illustrate this point eloquently and convincingly.
Our new Chamber President, Terry Taylor has called on all business people to see the positive in our business and physical environments and to promote our region positively and passionately. Taylor believes that we are collectively responsible for promoting our city and that together we could reach the tipping point that will create lasting positive investment in the city. So if each of us bears this challenge maybe we can be agents of lasting and dramatic change.
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Today we carry an insightful article on the possible effects of the world cup on us all. The very scale of this event evades most of us and although we are currently neither a host city nor a world cup venue there is no doubt that the World Cup is going to be disruptive to normal business.
Travel over this period and immediately thereafter is going to be very expensive and accommodation prices are hugely inflated. Whether this is going to be good for our economy is yet to be determined. The short term gains may certainly be quickly spent and the recurring business that could have been may be a dream as foreigners lament on the high costs of traveling to South Africa. Just looking at the costs of flights by the state carrier over this period is a grave cause for concern.
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