Managing Cuts And New Growth

A practical approach to business transformation Fit for Growth* is a unique approach to business transformation that explicitly connects growth strategy with cost management and organization restructuring. Drawing on 70-plus years of strategy consulting experience and in-depth research, the experts at PwC’s Strategy& lay out a winning framework that helps CEOs and senior executives transform their organizations for sustainable, profitable growth. This approach gives structure to strategy while promoting lasting change. Examples from Strategy&’s hundreds of clients illustrate successful transformation on the ground, and illuminate how senior and middle managers are able to take ownership and even thrive during difficult periods of transition. Throughout the Fit for Growth process, the focus is on maintaining consistent high-value performance while enabling fundamental change. Strategy& has helped major clients around the globe achieve significant and sustained results with its research-backed approach to restructuring and cost reduction. This book provides practical guidance for leveraging that expertise to make the choices that allow companies to: Achieve growth while reducing costs Manage transformation and transition productively Create lasting competitive advantage Deliver reliable, high-value performance Sustainable success is founded on efficiency and high performance. Companies are always looking to do more with less, but their efforts often work against them in the long run. Total business transformation requires total buy-in, and it entails a series of decisions that must not be made lightly. The Fit for Growth approach provides a clear strategy and practical framework for growth-oriented change, with expert guidance on getting it right. *Fit for Growth is a registered service mark of PwC Strategy& Inc. in the United States

A sensitivity analysis of allowable cuts on two BLM master units shows that even-flow allowable cuts depend primarily on: (1) assumed long-term growth potential, (2) period that growth increases must be cumulated before they can be removed from the stands on which they occur, and (3) amount and age-class distribution of the initial inventory. Current allowable cut levels respond relatively more to changes in long-term growth where: (1) the initial inventory is higher, (2) the age classes are more evenly distributed, (3) the growth increases can be cut sooner from the stands on which they occur, and (4) growth increases are smaller in proportion to the allowable cut. Current allowable cut levels respond relatively more to changes in inventory or short-term growth where: (1) the initial inventory is lower, and (2) the inventory is less evenly distributed. Although these results apply to even-flow allowable cuts, they should be regarded as rough approximations when applied to allowable cuts with less restrictive periodic flow constraints.

Emerging markets (EMs) are experiencing a surge in capital inflows, lifting asset prices and growth prospects. While inflows are typically beneficial for receiving countries, inflow surges can carry macroeconomic and financial stability risks. This paper reviews the recent experience of EMs in dealing with capital inflows and suggests a possible framework for IMF policy advice on the spectrum of measures available to policymakers to manage inflows, including macroeconomic policies, prudential measures and capital controls. Illustrative applications of this framework suggest that it may be appropriate for several countries, based on their current circumstances, to consider prudential measures or capital controls in response to capital inflows. The suggested framework is intended to inform staff policy advice to all Fund members with open capital accounts. It forms part of a broader effort to sharpen Fund surveillance, preserve evenhandedness, and foster greater global policy coordination. As indicated in the Supplement to this paper, this broader effort includes the development of “global rules of the game” on macroprudential policies, capital account liberalization, and reserve adequacy, and the preparation of spillover reports assessing spillovers from the five systemic economies—all of which will inform the current and broader framework being developed.

Detailed operating instructions are described for SIMAC, a computerized forest simulation model which calculates the allowable cut assuming volume regulation for forests with intensively managed stands. A sample problem illustrates the required inputs and expected output. SIMAC is written in FORTRAN IV and runs on a CDC 6400 computer with a SCOPE 3.3 operating system. The conceptual basis of the SIMAC method is not discussed in detail.