21st century Trends
“As we are moving towards Globalization from local production and distribution, diversification problem is also occurring.
Trends in FDI: -The past 20 years have seen marked increase in both the flow and stock of FDI in the world economy. In contrast to the long-term trend, between 2000 and 2002 the value of FDI slumped almost 60% from $1.3 trillion to about $543 billion. The most notable decline was in the level of cross-border managers and acquisitions.
Investment in Scientific and Technological Knowledge Creation
As nations have developed economically, they have tended to spend more on science and technology, and more specifically on research and development -- the creation of scientific and technological knowledge. The figure1 and figure 2 suggests that the most developed nations have already saturated the portion of GDP allocated to R&D, spending two or more percent of GDP on R&D. Those nations will spend more on research and development as their GDP's continue to rise, and may spend a greater portion of GDP on R&D if R&D productivity increases or if better means of translating scientific and technological knowledge into profits are institutionalized.
As nations have developed economically, they have tended to spend more on science and technology, and more specifically on research and development -- the creation of scientific and technological knowledge. The figure1 and figure 2 suggests that the most developed nations have already saturated the portion of GDP allocated to R&D, spending two or more percent of GDP on R&D. Those nations will spend more on research and development as their GDP's continue to rise, and may spend a greater portion of GDP on R&D if R&D productivity increases or if better means of translating scientific and technological knowledge into profits are institutionalized.
http://stconsultant.blogspot.com/2007/04/foresight-s-knowledge-trends-in-21st.html
Less developed nations, however, are not only increasing GDP, but increasing the portion of GDP spent on R&D as they progress economically. The BRIC countries (Brazil, Russia, India and China) are expected to enter the list of the most powerful economies of the world by 2050, and with other developing nations invest much more in research and development.Satellite communications
Satellite communications
Satellite communications have been in service for more than 40 years and represent by far the largest space industry, with annual revenues now at $30 billion a year and over 35,000 employees worldwide. Satellite technology may be viewed by some as a mature market; but this book will explore many exciting new technologies and services yet to be developed. A new demand for advanced Internet and IP services, entertainment, and multicasting services as well as advanced applications related to multimedia, telecommuting, etc. are the driving forces behind new satellite and communications research and development.
Economic trends: -
OPTIMISM INDEX
The Index of Small Business Optimism lost 0.5 points in April, falling to
96.8 (1986=100). The Index has been below its historical average (100.2)
For 11 of the past twelve months. Weaker, but no recession call.
Satellite communications have been in service for more than 40 years and represent by far the largest space industry, with annual revenues now at $30 billion a year and over 35,000 employees worldwide. Satellite technology may be viewed by some as a mature market; but this book will explore many exciting new technologies and services yet to be developed. A new demand for advanced Internet and IP services, entertainment, and multicasting services as well as advanced applications related to multimedia, telecommuting, etc. are the driving forces behind new satellite and communications research and development.
Economic trends: -
OPTIMISM INDEX
The Index of Small Business Optimism lost 0.5 points in April, falling to
96.8 (1986=100). The Index has been below its historical average (100.2)
For 11 of the past twelve months. Weaker, but no recession call.
LABOR MARKETS
Nationally, the unemployment rate remains at an exceptionally low level
Of 4.5 percent. Twenty-six (26) percent (seasonally adjusted) reported unfilled job openings, unchanged from March’s remarkable level. Over the
Next three months, Job creation plans were positive
In all industry groups, strongest in construction manufacturing and nonprofessional
Services (not seasonally adjusted).
CAPITAL SPENDING
Capital spending activity remained lethargic. The frequency of reported capital outlays
Over the past 6 months was flat at 60 percent of all firms. Forty-three (43)
Percent reported spending on new equipment, 23 percent acquired vehicles,
And 13 percent improved or expanded their facilities. Seven (7) percent
Acquired new buildings or land for expansion and 13 percent spent money
For new fixtures and furniture.
INVENTORIES AND SALES
A net negative two percent of owners reported a gain in inventory stocks
(Seasonally adjusted), four points lower than March. Now, more firms are
Cutting stocks than raising them. For all firms, a net negative three percent
Reported stocks too low (seasonally adjusted), a two-point improvement
From March. Twenty-six (26) percent reported higher sales and 31 percent
Reported lower sales, producing a seasonally adjusted net four percent of
All firms with higher sales in the most recent three-month period compared
To the prior three months, up four points from March.
This survey was conducted in April 2007. A sample of 10,799 small business owners/members was drawn.
INFLATION
So far, 2007 is not unfolding in the Federal Reserve’s favor. Growth is
Slower, but inflation pressures are increasing; “stagflation,” with a small
“S”. Since bottoming in December, the net percent of firms raising prices
Has risen from eight percent to 18 percent in April. Unadjusted, 31 percent
Reported raising average selling prices, up three points, and 11 percent
Reported lower selling prices, unchanged.
PROFITS AND WAGES
The net percent of firms reporting earnings improvements fell four points
From February levels in spite of a four-point gain in reports of higher sales
And nearly one in five owners reporting higher average selling prices. On
The negative side, 26 percent reported higher employee compensation.
And energy costs are on the rise. Labor compensation will be pressuring
Profit margins all year.
CREDIT MARKETS
Regular borrowing activity was reported by 37 percent of the owners.
There is no sign that borrowing activity has picked up, even with the
Problems in the housing sector. Reported borrowing activity among
Construction firms were 10 points lower than March. The net percent of
Owners reporting loans harder to get in recent months fell slightly,
Dropping two points to a net five percent (six percent said “harder,” one
Percent said “easier”), typical of recent readings.
Green Power: The environment trend has been around and been a struggle for many companies, such as automakers with electric cars trying to capitalize on the green awareness. The care of Mother Earth is still a big concern of society. According to a recent Harris Poll, over 74% of American adults believe in the global warming theory. Over 73% of U.S. citizens approve of the Kyoto agreement for countries to limit their carbon monoxide and greenhouse gas emissions. Although, the United States has not signed the accord, countries like Canada, that have accepted, the accord will be a watch place for the impact. http://sbinformation.about.com/cs/bestpractices/a/aa122202a.htm
Opportunities: This trend will be supported by businesses reducing reliance on oil & gas with new forms of energy like wind power. Wind power experienced a 1.7 billion dollar increase in new equipment during 2001 (American Wind Energy Association). Also, look to companies helping companies reduce energy consumption with new forms of energy saving products. For example, one small business is profiting from installing energy efficient shipping doors for corporate shipping operations.
Delivering High Customer Value
Consumers have varying degrees of loyalty to specific brands, stores, and companies. Oliver defines loyalty as "A deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior. The key to generating high customer loyalty is to deliver high customer value. Michael Lanning, in his Delivering Profitable Value, says that a company must design a competitively superior value proposition aimed at a specific market segment, backed by a superior value-delivery system.
Total Quality Management
The quest to maximize customer satisfaction led some firms to adopt total quality management principles. Total quality management (TQM) is an organization-wide approach to continuously improving the quality of all the organization's processes, products, and services.
Example: -Now a days all companies are expanding their business world wide.As WAL-MART’S established in Arkansas by sam walton.WAL-MART has grown rapidly to become the largest retailer in the world with 2002 sales of $218 billion,1.3 million associates and some 4500 stores.
Personal experience:-Dell computers are using internet for their supply-chain. They don’t have retail outlets, if one wants to buy dell computers.He has to place order on the dell website.because of internet facility they assamble computers at very low cost.
References: -
http://stconsultant.blogspot.com/2007/04/foresight-s-knowledge-trends-in-21st.html
http://sbinformation.about.com/cs/bestpractices/a/aa122202a.htm
International business (Charles W.L Hill)
Nationally, the unemployment rate remains at an exceptionally low level
Of 4.5 percent. Twenty-six (26) percent (seasonally adjusted) reported unfilled job openings, unchanged from March’s remarkable level. Over the
Next three months, Job creation plans were positive
In all industry groups, strongest in construction manufacturing and nonprofessional
Services (not seasonally adjusted).
CAPITAL SPENDING
Capital spending activity remained lethargic. The frequency of reported capital outlays
Over the past 6 months was flat at 60 percent of all firms. Forty-three (43)
Percent reported spending on new equipment, 23 percent acquired vehicles,
And 13 percent improved or expanded their facilities. Seven (7) percent
Acquired new buildings or land for expansion and 13 percent spent money
For new fixtures and furniture.
INVENTORIES AND SALES
A net negative two percent of owners reported a gain in inventory stocks
(Seasonally adjusted), four points lower than March. Now, more firms are
Cutting stocks than raising them. For all firms, a net negative three percent
Reported stocks too low (seasonally adjusted), a two-point improvement
From March. Twenty-six (26) percent reported higher sales and 31 percent
Reported lower sales, producing a seasonally adjusted net four percent of
All firms with higher sales in the most recent three-month period compared
To the prior three months, up four points from March.
This survey was conducted in April 2007. A sample of 10,799 small business owners/members was drawn.
INFLATION
So far, 2007 is not unfolding in the Federal Reserve’s favor. Growth is
Slower, but inflation pressures are increasing; “stagflation,” with a small
“S”. Since bottoming in December, the net percent of firms raising prices
Has risen from eight percent to 18 percent in April. Unadjusted, 31 percent
Reported raising average selling prices, up three points, and 11 percent
Reported lower selling prices, unchanged.
PROFITS AND WAGES
The net percent of firms reporting earnings improvements fell four points
From February levels in spite of a four-point gain in reports of higher sales
And nearly one in five owners reporting higher average selling prices. On
The negative side, 26 percent reported higher employee compensation.
And energy costs are on the rise. Labor compensation will be pressuring
Profit margins all year.
CREDIT MARKETS
Regular borrowing activity was reported by 37 percent of the owners.
There is no sign that borrowing activity has picked up, even with the
Problems in the housing sector. Reported borrowing activity among
Construction firms were 10 points lower than March. The net percent of
Owners reporting loans harder to get in recent months fell slightly,
Dropping two points to a net five percent (six percent said “harder,” one
Percent said “easier”), typical of recent readings.
Green Power: The environment trend has been around and been a struggle for many companies, such as automakers with electric cars trying to capitalize on the green awareness. The care of Mother Earth is still a big concern of society. According to a recent Harris Poll, over 74% of American adults believe in the global warming theory. Over 73% of U.S. citizens approve of the Kyoto agreement for countries to limit their carbon monoxide and greenhouse gas emissions. Although, the United States has not signed the accord, countries like Canada, that have accepted, the accord will be a watch place for the impact. http://sbinformation.about.com/cs/bestpractices/a/aa122202a.htm
Opportunities: This trend will be supported by businesses reducing reliance on oil & gas with new forms of energy like wind power. Wind power experienced a 1.7 billion dollar increase in new equipment during 2001 (American Wind Energy Association). Also, look to companies helping companies reduce energy consumption with new forms of energy saving products. For example, one small business is profiting from installing energy efficient shipping doors for corporate shipping operations.
Delivering High Customer Value
Consumers have varying degrees of loyalty to specific brands, stores, and companies. Oliver defines loyalty as "A deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior. The key to generating high customer loyalty is to deliver high customer value. Michael Lanning, in his Delivering Profitable Value, says that a company must design a competitively superior value proposition aimed at a specific market segment, backed by a superior value-delivery system.
Total Quality Management
The quest to maximize customer satisfaction led some firms to adopt total quality management principles. Total quality management (TQM) is an organization-wide approach to continuously improving the quality of all the organization's processes, products, and services.
Example: -Now a days all companies are expanding their business world wide.As WAL-MART’S established in Arkansas by sam walton.WAL-MART has grown rapidly to become the largest retailer in the world with 2002 sales of $218 billion,1.3 million associates and some 4500 stores.
Personal experience:-Dell computers are using internet for their supply-chain. They don’t have retail outlets, if one wants to buy dell computers.He has to place order on the dell website.because of internet facility they assamble computers at very low cost.
References: -
http://stconsultant.blogspot.com/2007/04/foresight-s-knowledge-trends-in-21st.html
http://sbinformation.about.com/cs/bestpractices/a/aa122202a.htm
International business (Charles W.L Hill)
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