Welcome to Management in Focus, the monthly newsletter from Galeazzi & Associados. On the last Monday of each month, you receive exclusive analyses, key topics to watch, and insights from Galeazzi & Associados on what's driving the market and businesses. This aims to enhance your planning and decision-making with the expertise and perspectives of our professionals.

We are just two months away from a new year, and major research centers are starting to present projections for the economy in 2024, along with trends in different sectors. Globally, the Organization for Economic Co-operation and Development (OECD) expects the world economy to grow by 2.7% next year, driven by North American strength. Although the forecast is positive, it is 0.3% below the expected growth by the end of 2023. On the other hand, inflation is expected to persist, especially given movements in energy and food markets. According to the United Nations Conference on Trade and Development (UNCTAD), in the case of Brazil, economic growth is projected to be 2.3%, a slowdown compared to this year.

In terms of technology, the Gartner Institute points to the rise in the use of artificial intelligence (including generative AI), smart apps, sustainable technology (in line with the ESG movement), and personalized clouds. When it comes to consumer trends, there's no turning back on digitization, and consumers are becoming more rational, demanding, and selective regarding companies' attitudes and partnerships. On the other hand, although purchasing power remains constrained due to inflation, customers may be willing to invest more to support local production and commerce.

As for retail, after a challenging 2023, the National Confederation of Commerce, Services, and Tourism (CNC) is optimistic about 2024, relying on the confidence in the Brazilian economy, reduced indebtedness, and increased credit availability. Other initiatives such as the approval of the 'Leis do Bem,' 'Lei da Moda,' and Sudene, along with tax reform and consequent fiscal benefits, should favor the retail sector.

Why did we bring some of these highlights to this newsletter? Because, as mentioned at the beginning, we are two months away from 2024, and all the attention of business managers should be focused on planning, one of Galeazzi & Associados' services. More than an administrative formality, strategic planning is the path for any company to set its objectives and goals, diagnose problems, and identify risks and threats for the coming year in light of the macro and microeconomic scenario.

As Graham Kenny, a leading expert on strategic planning in Australia and a frequent contributor to the Harvard Business Review, argues, strategic planning should be a strategic exercise. He believes that this strategy involves creating a system where all stakeholders in the company interact to create sustainable advantages for the business. "Strategic planning is how the company conceives this system, which is very different from an operational action plan, as it is never a static list of tasks but evolves constantly as strategic decision-makers gain more knowledge about how their stakeholder system can create value," he wrote for HBR in 2022.

So, delve into the trends for 2024 and work diligently on scenario projections and the goals your company should achieve. Be diligent. Be realistic. But above all, don't plan in the dark or based on guesses. The information is at your fingertips. Know how to leverage it.

Until next time!