Chapter 1: Changes in global economic economy

Chapter 1: Changes in global economic economy focus on two questions what are the key methods for tracking and identifying opportunities in the macro-environment? What are the key demographic, economic, natural, technological, political, and cultural developments?.

04/10/2009 Chapter Changes in global economic economy l In this chapter, we focus on two questions: – – What are the key methods for tracking and identifying opportunities in the macro-environment? What are the key demographic, economic, natural, technological, political, and cultural developments? Analyzing Needs and Trends in the Macroenvironment Fad: tượng, phong trào “Unpredictable, short-lived and without social, economic and political significance” VD: Harry Potter Trend: khuynh hướng: more predictable and durable VD: giới di động cell phone, notebooks Megatrends: xu large social, economic, political and technological changes; slow to form but durable about 10 years or longer VD: * from labor intensive to hi-tech industry * from Western to Eastern * from government-driven to market-oriented economies • Urbanization 04/10/2009 Given the definitions for fads, trends, and megatrends presented in the text, how would you define your online activities? Can you identify an online trend that is likely to grow into a megatrend? Identifying and Responding to the Major Macroenvironment Forces l l l l The substantial speedup of international transportation, communication, and financial transactions, leading to the rapid growth of world trade and investment, especially tripolar trade (North America, Western Europe, Far East) The movement of manufacturing capacity and skills to lower cost countries The rising economic power of several Asian countries in world markets The rise of trade blocks such as the European Union and NAFTA signatories 04/10/2009 Identifying and Responding to the Major Macroenvironment Forces l l l l l The severe debt problems of a number of countries, along with the increasing fragility of the international financial system The increasing use of barter and countertrade to support international transactions The move toward market economies in formerly socialist countries along with rapid privatization of publicly owned companies The rapid dissemination of global lifestyles The gradual opening of major new markets, namely China, India, eastern Europe, the Arab countries, and Latin America Identifying and Responding to the Major Macroenvironment Forces l l l l The increasing tendency of multinationals to transcend their locational and national characteristics and become transnational firms The increasing number of cross-border corporate strategic alliances–for example, MCI and British Telecom, and Texas Instruments and Hitachi The increasing ethnic and religious conflicts in certain countries and regions The growth of global brands in autos, food, clothing, electronics 04/10/2009 Identifying and Responding to the Major Macroenvironment Forces l Demographic Environment – – – Worldwide Population Growth Population Age Mix Ethnic and Other Markets Quá trình hội nhập kinh tế giới Việt Nam tạo hội thách thức cho doanh nghiệp sản xuất nước? 04/10/2009 Identifying and Responding to the Major Macroenvironment Forces – – – – Educational Groups Household Patterns Geographical Shifts in Population From a Mass Market to Micromarkets Identifying and Responding to the Major Macroenvironment Forces l Economic Environment – – Income Distribution Savings, Debt, and Credit Availability 10 04/10/2009 Identifying and Responding to the Major Macroenvironment Forces l Natural Environment – – – – Shortage of Raw Materials Increased Energy Cost Anti-Pollution Pressures Changing Role of Governments 11 Identifying and Responding to the Major Macroenvironment Forces l Technological Environment – – – – Accelerating Pace of Change Unlimited Opportunities for Innovation Varying R&D Budgets Increased Regulation of Technological Change 12 04/10/2009 Identifying and Responding to the Major Macroenvironment Forces l Political-Legal Environment – – Legislation Regulating Business Growth of Special-Interest Groups l Consumerist movement 13 Identifying and Responding to the Major Macroenvironment Forces l Social-Cultural Environment l l Views of themselves Views of others l l l l Views of organizations Views of society Views of nature Views of universe 14 04/10/2009 Identifying and Responding to the Major Macroenvironment Forces l l High Persistence of Core Cultural Values Existence of subcultures – l Subcultures Shifts of Secondary Cultural Values Through Time 15 ... Texas Instruments and Hitachi The increasing ethnic and religious conflicts in certain countries and regions The growth of global brands in autos, food, clothing, electronics 04/10/2009 Identifying... rapid dissemination of global lifestyles The gradual opening of major new markets, namely China, India, eastern Europe, the Arab countries, and Latin America Identifying and Responding to the... with the increasing fragility of the international financial system The increasing use of barter and countertrade to support international transactions The move toward market economies in formerly