Business executives around the world largely agree that technological innovation, the free flow of information, and the rise of a new class of consumers in emerging markets are developments that will have a positive impact on the profitability of their companies, according to the latest McKinsey Quarterly survey.¹ However, the survey also shows that there is a relatively wide gap between the impact that executives assign to these trends and the extent to which their companies have taken active steps to seize the opportunities.

In their responses to questions about 14 macroeconomic, political, social, environmental, and business trends, executives from different industries also reveal significant differences in their assessments of the impact of the trends, as well as the actions their companies are taking to address them. For example, executives in the energy and mining industries are far more likely than most other respondents to see a social backlash against corporate activity as a threat to profits—and far more likely to have taken some steps to address that threat—than executives in other industries who are also concerned about it.

To meet the competitive challenges these trends are creating, executives say, one important response is forming strategic partnerships. Indeed, many companies are reaching outside their own organizations in a range of directions. Structural changes, including consolidation within industries and the formation of upstream and downstream partnerships, are widespread. However, when sourcing their knowledge, respondents report (somewhat counter to this theme) that partnerships with other businesses and academic institutions play a relatively modest role.