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In any other election cycle, the predictable increase and decrease in uncertainty offers shrewd managers unique opportunities for operating, investment, and financing decisions. This year, however, is different.
firms gravitate towards digital strategies, firms have less need for elaborate finance, marketing, production, distribution, accounting, and human resource departments. Such acquisitions become more lucrative with rising first-moveradvantages, pace of technological development, and network externality.
Long-term: Work with academia or a third party to solve a high-impact use case (augmented human decision making in a key knowledge worker role, for example) with bleeding-edge AI technology to potentially capture a sizable first-moveradvantage. Machine learning is a powerful tool, but it’s not right for everything.
More recently, it has gained attention as a way to finance new ventures, through what is known as an Initial Coin Offering (ICO). Less noticed, though, is ICOs appear almost antithetical to the standard approach to financing a risky venture. In fact, ICOs have upended the conventional pattern of staged experimentation and fundraising.
In this environment, multinationals that are willing to accept some risk and invest in the country could benefit from first-moveradvantages – but only if the new administration follows through with much-needed economic reforms. Mnangagwa’s first actions in office underscore how important he views economic recovery.
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