World Briefing

EXECUTIVE SUMMARY
The Small Idea
Not every team has Barry Bonds, so don't wait for the upper-deck smash. That's the message of Profitable Growth Is Everyone's Business, the latest from Ram Charan, a noted consultant and co-author of the best-selling Execution: The Discipline of Getting Things Done. Charan argues that executives should look for "singles and doubles" to steadily enhance revenues, such as Dell's efforts to improve inventory turns, instead of industry-altering ideas. The tool for smacking a line drive is the "growth budget," which allocates specific resources to achieve targeted gains. "This discipline can change the whole psychology of a company," says Charan. It has certainly helped Dupont, which now budgets more R.-and-D. funds to its fastest-growing areas instead of equally across the board.

Remote Possibility
Couch creatures now have to look for only one remote between the sofa cushions, not three or four, thanks to Canada's Ontario-based Intrigue Technologies. Its new Harmony SST 659, which retails for $199, enables you to control your television, DVD player and stereo with a single device. Unlike earlier all-purpose models, it doesn't require you to have a computer-science degree to make it work. Just connect the remote to your computer through the USB cable included in the package, tell the Harmony Web page the make and model number of your gear, and let the software upload the relevant codes. Buttons labeled WATCH TV and LISTEN TO MUSIC allow you to switch functions quickly, and a 1-in. screen displays television listings.

The Inflation Situation
Copper is trading above $1 a pound for the first time in more than six years. Gold broke $420 an ounce. Nickel is at a 14-year high. The Reuters/CRB commodity index rose 9% in 2003, to its highest level since 1996. Do soaring prices for raw materials mean inflation for finished goods, as in the '70s and '80s? "Almost certainly not," Ben Bernanke, a Federal Reserve Board governor, said recently. Sure, China's infrastructure and consumer-spending boom have bolstered demand for commodities. China purchased some 20% of the world's copper last year, compared with 5% in 1990. This demand pushes prices up, but China's capacity is expanding in step, keeping a lid on the price of finished goods. "China works both sides of the equation," says Alan Ruskin, managing director of 4Cast Inc., an economic-research firm. Expect the Fed to apply the brakes if needed. Says Ruskin: "Today companies have more confidence in the inflation-fighting credentials of central banks, so expectations tend to be subdued."

Whisky Rebellion
Cardhu is on the rocks with the Scotch Whisky Association. The single-malt whisky brand, produced by London-based Diageo, the world's largest spirits maker, ran low on supply. So it blended malts from several distilleries and, except for changing "single-malt" to "pure-malt" on the bottle, kept the same labeling. That got some tartans in a twist. A Scottish Member of Parliament, Angus Robertson, asked Prime Minister Tony Blair to intervene to protect Scotland's heritage, and Diageo agreed to change the color of its bottle. Sales of single-malt whisky continue to rise worldwide, though the overall market is relatively flat, according to Impact Databank. In the U.S., single-malt sales have more than doubled in a decade. It's a tribute to Diageo's marketing. Will other single-malt brands run dry? Says Frank Walters, Impact's research director: "I don't see that happening."

Italy: Got Milk?
Will Parmalat become Italy's Enron, a crisis that leads to business reform? Don't bet on it. Yes, the government of Prime Minister Silvio Berlusconi amended Italy's antiquated bankruptcy rules to protect Parmalat from creditors, and the government plans to merge a plethora of regulators into a single agency with real teeth. But the credibility of these efforts is being undermined by Berlusconi himself, Italy's richest man. For instance, last year the government reduced the penalties for false accounting, an offense for which Berlusconi was indicted in 1999. Also, to avoid bribery charges, he pushed through a law giving top government office holders immunity from prosecution, though last week Italy's high court deemed this move unconstitutional. Notes Guido Corbetta, a business professor at Milan's Bocconi University: "You can always improve the laws, but what's important is changing the culture."

High on the Hogs
The motorcycle industry has just completed its 11th straight year of growth. Sales were up some 6% in the U.S., powered by what should be a record second half for hogmaker Harley-Davidson. In Europe, Italian manufacturer Ducati sold nearly 7,000 of its $10,000 bikes, a company record. At the other end of the price scale, sales of Hero Honda, India's biggest motorcycle maker, are up 15.3% this year. What's powering the growth? In the U.S., "baby boomers are attracted to the allure of Harley-Davidson," says Ed Aaron, an analyst at RBC Capital Markets. "And the company's supply constraints have benefited the competitors." Hot reality shows like Motorcycle Mania and American Chopper, both on the Discovery Channel, help. Among the 2004 models getting early buzz are Harley's updated Sportster and new four-cylinder-engine models from Honda, Kawasaki and Yamaha, along with Ducati's 1970s-theme retro bikes.