This is an urgent edition of the Advantexe Advisor Blog that is being shared with our clients and community. As the work week starts, US businesses are struggling to understand the short-term and long-term implications of the government's decision to implement tariffs on imports from Canada, Mexico, and China.

The purpose of this document is to share business insights and to help our clients understand the business acumen of the tariffs. Over the weekend, I spent time crafting new simulation wobblers that will be integrated into several of our customized business acumen simulations being prepared for roll-out over the next few weeks.

As always, Advantexe tries to keep the business acumen learnings non-political so our clients can understand the situation and use new knowledge and skills to make the best short-term and long-term business decisions for their people, customers, and stakeholders.

What are Tariffs?

Import tariffs, like the ones President Trump is levying, are taxes placed on goods imported from other countries. Please note that export tariffs, which are taxes on goods brought out of a country, are much rarer and not part of the current situation.

There are several different types of tariffs, and the kind that President Trump is imposing is known as an “ad valorem tariff,” meaning the tax on imported goods is calculated as a percentage of the product’s value. For example, if Product X has a Cost of Goods Sold (COGS) of $100 and the tariff is 10%, the tax will be $10. It is not the selling price of Product X, which could be $150, which is a typical 50% margin.

Welcome to Part 2 of '25 Business Issues to Think About in 2025'!In Part 1, I explored some of the most pressing challenges and opportunities businesses will face in the coming year, ranging from AI integration and workforce upskilling to sustainability and geopolitical instability. These issues underscore the need for strategic thinking and strong business acumen skills across organizations.

As we continue, Part 2 will take a deeper look into topics that are just as critical for success in 2025. From navigating cybersecurity threats to leveraging quantum computing, this next set of challenges highlights the importance of staying agile and forward-thinking. Let’s explore how these issues can shape the future and how being prepared can help your organization achieve its goals. 

Happy New Year! As we all jump back into what is sure to be another tumultuous year, I thought it would be interesting to pause for a moment to think about and prepare for the big issues facing businesses around the world in 2025.

The end of a business year is an important time to pause, reflect, and learn about the things that went well and the things that didn’t so you can make the right adjustments moving forward.

In reflecting on my year of successful projects utilizing our simulation-centric platforms, one of the most significant and impactful areas of work for me was the design, development, and delivery of a portfolio of coaching and feedback simulations that provided learners with the opportunity to step into a role of a coach in a simulated environment and learn-by-doing.

Obviously, coaching is one of the most important, and broadest, areas of talent development and there are a lot of experts out there who provide models, frameworks, and excellent content to learn from. But there really aren’t a lot of ways to gain expertise through practice other than traditional role plays and some fairly strange technologies where an avatar is bringing a human to life, but it is still a person behind the curtain like the Wizard of Oz.

The end of a year is a time for both reflection and planning forward. 2024 was another volatile year from a business perspective as many organizations dealt with a bumpy economy and other issues that included:

• What to do with AI?
• Spin-offs, mergers, and restructurings
• Sustainability
• Remote Work
• Cybersecurity
• Supply chain issues
• Labor force issues

It’s important for everyone to take inventory of the things that worked and the things that didn’t and move forward with your strategy, the setting of goals, and the execution that must occur to be successful in the coming year.

In any year, having an organization that has a culture of Business Acumen is important and I believe given all the challenges we are going to face in 2025, they are going to be more important than ever.

To help you start thinking about the challenges and ways to solve them through having better Business Acumen skills, I put together three of the most foundational skills needed by every organization going into a new year: