changing buiness environment

CHANGING BUINESS ENVIRONMENT

INTRODUCTION A fundamental shift is occurring in the world economy. We are moving away from a world in which national economies were relatively self-contained entities, isolated from each other by barriers to cross-border trade and investment, by distance, time zones, and language, and by national differences in government regulation, culture and business systems. And we are moving toward a world in which barriers to cross-border trade and investment are tumbling, perceived distance is shrinking due to advances in transportation and telecommunication technology, material culture is starting to look similar the world over, and national economies are merging into an interdependent global economic system. The process by which this is occurring is commonly referred to globalization.
Since the collapse of communism at the end of the 1980 the pendulum of public policy in nation after nations has swung towards the free market end of the economic spectrum.The emergence of global institutionsOver the past half century, a number of important global institutions have been been created to help manage, regulate and police the global marketplace, and to promote the establishment of multinational treaties to govern the global business system.
The changing world output and world trade picturecountry ( share ofworld output) SHARE OF WORLD EXPORT
1963, 2001-2002, 2002
UNITED STATES 40.3%, 21.5%, 11.9%
JAPAN 5.5% , 7.55% , 6.6%
GERMANY 9.7%, 4.64%, 9.3%
FRANCE 6.3% , 3.27% , 5.2%
U.K 6.5% , 3.23%, 4.4%
ITALY 3.4% , 3.0%, 3.9%
CANADA 3.0 %, 1.96%, 4.2%
CHINA NA , 12.77% , 4.2%
SOUTH KOREA NA, 1.98%, 1.5%
The changing pattern of world output and trade
Characteristics of today’s business environment
Ø Recent forces and events have influence that goes beyond national boundaries and operates in sudden and something mysterious ways that surpass even the wild anticipations of governmental and international institutions.
Ø Most of the forces originate in geographically distant places but appear to be linked together in their impacts and consequences.
Ø Action needed to limit these consequences must be regional or international, and such actions demand plans and policies that are well coordinated, thoughtful, and practical
Ø The forces that shapes global business are numerous and uncontrollable and they simultaneously stimulate integration and differentiation.

Trade

Since the 1950s, trade has been expanding faster than world output.infact; world GDP and trade grew at ostentatious rates in 1997 despite the Asian financial crises. Merchandise exports grew at 9.5%and this is the highest rate of trade growth in more than two decades (WTO, 1998). Merchandise exports increased from $4,15 billion in 1995 to$ 5,295 billion in 1997. For the same year commercial services increase from $1200 billion to $1295 billion.The annual percentage change rate for world exports increased from an average of 6%for 1995-1996 to 9.5% in 1997.

References: -1) International businessCharles W.L HILLUniversity of Washington2) ARUN K.JAINIndian institute of managementLuck now3) GLOBALISATION OF BUINESSABBAS J.ALI

communication strategy

There is just one thread common to every successful enterprise—every one of them communicates well. They communicate their strengths, their values, and their qualities; they keep their employees, their stakeholders, their clients, their potential clients and government informed; they communicate their excellence.
Strategic Communications: -Strategic communications means using corporate or institutional communications to create, strengthen or preserve, among key audiences, opinion favourable to the attainment of institutional/corporate goals.
Goals of strategic communications:
Promote "bottom line" favourable public policy outcome
Reduce cost of doing business
Support marketing/operational effectiveness
Purpose of Strategic Communications Planning: -To defines strategic, actionable goals, and an implementation approach and plan, to guide communicators and others in designing, preparing and executing strategic communications.
Steps for An Effective organization strategy: -
· Setting objectives
· Deciding on the proper allocation of resources
· Diagnosing the organizations reputation
· Assessment of the constituents involved
· Constituency responses
Uses of communication strategy: -
· To enhance reputation. E.g. advertisement
· To communicate effectively E.g. communicate effectively with employees
· To convince shareholders. E.g. for investments

Components of communication strategy: -
· Organization
· Constituency:
a. Primary: -e.g. employees, shareholders, customers, communities
b. Secondary: -e.g. suppliers, Government (local, regional, national
· Creditors

References:communication strategy(text book)
and By
Peter O'Malley
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