Fwd: Chart Focus: Mapping globalization

Chart Focus Newsletter December 2011 View on the Web: http://www.mckinseyquarterly.com/newsletters/chartfocus/2011_12.htm Share Mapping globalization No more than 25 percent of economic activity is truly global, yet visions of a borderless planet entrance many senior executives. To grasp the realities of a world where distance and differences still matter, they should develop "rooted" maps, which correct the misimpression that a viewer's vantage point doesn't influence the way things look. The starting point for rooted maps is to create a reference map depicting your industry environment, but not your own company's or country's place in it. An executive at a film studio, for example, might develop a map in which the size of countries reflects their total box office revenues and the color depicts the market share of domestic movies. By comparing the reference map with rooted maps, executives can identify the impact of borders, distances, and differences. Read "Remapping your strategic mind-set" (August 2011) to see rooted maps depicting the worldwide revenues of US versus Indian films, the exposure of German and US banks to problematic European loans, and the provenance of the oil supplies of China, Europe, and the United States. Also of Interest April 2011 Drawing a new road map for growth New findings reveal how large and small companies grow—and the startling performance of players in emerging markets. July 2010 Applying global trends: A look at China's auto industry Strategists can challenge conventional wisdom and prepare for uncertainty by analyzing the complex interaction of global trends in their industries. June 2010 Global forces: An introduction Five crucibles of change will restructure the world economy for the foreseeable future. Companies that understand them will stand the best chance of shaping it. [includes video] March 2008 Dissecting global trends: An example from Italy Executives should examine the impact of trends on subindustries, segments, categories, and micromarkets before placing their bets.

Did you miss last month's Chart Focus? How high unemployment lingers Increasingly long periods of high unemployment followed the US recessions of the last two decades. Until the 1980s, employment rebounded about six months after GDP. But in the wake of the 1990–91 and 2001 recessions, it recovered 15 and 39 months, respectively, after GDP had returned to the prerecession peak. At recent rates of job creation, the lag this time will be more than 60 months. You are receiving this e-mail because you are a registered member of mckinseyquarterly.com and have subscribed to the Economic Studies list. To ensure delivery, add e.mckinseyquarterly.com to your address book. McKinsey & Company, 21 South Clark Street, Chicago, Illinois 60603 Manage your subscriptions Unsubscribe from this mailing Access our help tool Read privacy policy

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