Growing interconnectedness between economies and more complex trade and financial relationships necessitates updated management approaches. The global economy has become massive in size, breadth and diversity. There are enormous opportunities but they are also fraught with complexity. The interconnectedness between fast growing and mature regions has vastly increased the complexity, number and range of stakeholder relationships that must be managed.
Like corporations everywhere, Japan's corporations need to deal with these complexities. But on balance, Japanese corporations have been slower to adapt to new global complexities. When the world was simpler, executives could control their business and understand customer dynamics from headquarters. But today's environment necessitates that a central strategy is adapted to fit operations around the world. This usually means devolving authority to increase the company's ability to respond to local conditions. To enable decisions with greater uncertainty to be made with greater speed.
PwC Chairman Bob Moritz talk to Reuters' Fred Katayama about how how to improve Japan's global competitiveness.