Shere Marketing Blog

Looking out of my window today at yet more rain, while musing about how small and medium-sized businesses should be managing the “double dip” recession, I was struck by how little the macro-economic environment has changed over the last 2-3 years.  Consider:

• UK Official Bank Rate has been unchanged for over 3 years since March 2009, the longest period of stability in its 37-year history.
• In the 3½ years since October 2008, monthly average sterling exchange rates against the Euro and US dollar have fluctuated by no more than 6% and 8% respectively above and below central values which are relatively competitive in historical terms.
• Despite a succession of bailouts, the Eurozone crisis which emerged in late 2009 with concerns about Greek debt is still smouldering on 2½ years later, with no end in sight.
• Inflation-adjusted GDP has been stubbornly stalled at about 4% below its pre-recession peak for almost the last 2 years. 

Make a New Year’s resolution – to manage uncertainty

Here we stand once again at the beginning of a new year.  What will it have in store?

12 months ago no-one could foresee all that 2011 would bring.  Some events were expected: the royal wedding; the rugby world cup.  Others, if not expected, might reasonably have been foreseeable to some extent: bailouts of the weaker Eurozone economies;  the spread of Tunisian unrest across the Arab world.  And of course many were neither expected nor foreseen: the Japanese tsunami; the death of Osama bin Laden; riots in Britain; Manchester United being trounced 6-1 at home by Manchester City… 

Businesses face similar uncertainties in 2012.  Much of what will happen to them this year will be unexpected, and some will be unforeseeable.  But there are two key steps you can take to manage the impact of uncertainty on your business and even turn it to your advantage: