What happens when inflation rises? Who benefits from inflation? Why is inflation rising? As early as 2020, economist Hans-Werner Sinn argued: “We don’t know when inflation will arrive. But when it arrives, it arrives unexpectedly and quickly ». The speed with which the sustained increase in the general average level of prices of goods and services has been developing in the latter period has surprised almost everyone. After a decade of extraordinary stability, we are experiencing the highest rates of price increases since the 1970s. Who is affected by inflation? The simple answer is that everyone is affected: consumers, businesses and, of course, the state. For better orientation, Il Sole 24 Ore offers the book “Inflation. The guide to know and face it ”by Hermann Simon, founder and Honorary Chairman of Simon-Kucher & Partners, and Francesco Fiorese, Partner of the Milan office of Simon-Kucher & Partners. The causes of current inflation are many, no doubt with roots in the expansion of the money supply that began with the financial crisis of 2008-2010. Even more difficult to predict than general inflation is the price development of individual sectors or products. However, for a company’s management, these specific developments are more important than general trends. “Inflation upsets the normal dialectics between company functions, puts commercial and sales strategies in crisis. It forces magic that must hold together the tightness of margins, the desire not to strangle customers so as not to lose them, the control of wage policies towards personnel, attention to finance in order not to burn real reserves and guarantee cash flows and investments ”, reads the introduction of the volume by Alberto Orioli, Deputy Director of Sole 24 Ore. The only way to counter this unpredictability is to have an information system that is as timely as possible. The list of challenges to be overcome covers all business functions. It will therefore be necessary to both change the corporate culture and take concrete actions. “Because inflation is still an enemy of business efficiency and growth. For this reason, the best therapy – as Hermann Simon and Francesco Fiorese demonstrate – is the change of cultural paradigm. And this volume is the best example of what this can mean ”, Orioli concludes.
The authors
Hermann Simon founder and Honorary Chairman of Simon-Kucher & Partners. He has taught at the world‘s most prestigious universities and business schools including INSEAD, MIT, Harvard, Stanford and London Business School. Listed as one of the top 50 contemporary management thinkers, he has published more than 40 books in over 30 languages, coining new analytical cuts for management such as Hidden Champions and always keeping profit and business opportunities at the center of the story.
Francesco Fiorese is Partner of the Milan office of Simon-Kucher & Partners. Expert in strategy, marketing and commercial development, he assists multinationals and SMEs in value creation and sustainable growth initiatives. Already the author of numerous articles and studies dedicated to strategy and marketing, graduated in Engineering from the University of Padua, he participates as an expert in strategies.
Data
Title: INFLATION; Subtitle: The guide to know and face it; Author: Hermann Simon and Francesco Fiorese; Publisher: Il Sole 24 ORE; Type: Paper book; Pages: 256; Format: 14×21 cm: Binding: Paperback with flaps; Language: Italian; Newsstand release: October 1, 2022 newsstand: € 12.90; Bookstore output: October 7, 2022 bookshop: € 16.90, ebook: € 9.99