RYAN KRISTJANSON - BUSINESS TODAY

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BUSINESS TODAY

In this day and age, the business environment is constantly changing. Posted here is information of that which is influencing the business world, for good or worse.



The Job Market

The idea that one will be able to get hired fresh out of college in a respectable company and remain a loyal employee until the ripe age of retirement is an idea of the past. One may have accomplished this a decade or more ago. The present market has higher demands than ever before, eyes searching for more efficient routes. Simply, the world has become so much more competative. With this competition, a company is willing to do almost anything in order to exceeds the accomplishments of their competitors -even "letting go" of that employee that has been in there for thirty years with dozens of Employee of the Month awards. Corporations constantly search for the best for the least amount of pay.

Outsourcing is a common strategy with large companies, now becoming international. They hire employees in other countries who are willing to recieve a lower pay than one wishes in the United States. This trend is a movement that may never end - yet another characteristic of Globalization. This is not causing every single US citizen go into a panic from unemployment, but it is taking a slow toll on a certain percentage of the population. With that said, I feel it is neccessary to be completely capable of hire - getting ample education, experience, and connections.

Business Today

SOCIAL TRENDS. The social aspects of the world has always influences the economy in one way or another. Currently there are a number if trends that are definitely affecting the way businesses are today. Technology is changing the way businesses are communicating, transfering goods, managing employees; and the list goes on. The movement of foreigners coming to the US, Immigration, is causing companies' hiring methods and advertising. Within the realms of a company, slowly the gap of pay between men and women is closing; there is less discrimination. Companies have become more flexible with its customers - products are now more customizable. In the near future a large number of the Baby Boomer generation will be retiring. This will, without hesitation, affect the way the economy will take the world.

                                                                (http://www.powerhomebiz.com/vol15/socialtrends.htm)


ECONOMIC TRENDSNot long after the turn of the century the price of gas has increased, causing a host of issues - for example less consumer spending. The increase of the price of foods has also caused less consumer spending. This forest fire eventual found its way to companies, hurting and causing then to cut corners, for example down sizing.

Not far in the past, there was a colapse of countless mortgage policies. Loans were accepted and given to "qualified" people. Numerous of these people were unable to satisfy the demands of the bills. Soon, these mortgage companies felt to burn and began to file bankruptcy. The snowball to seemed to pick up speed after than. Banks and investment companies joined the ranks of bankruptcy or they were bought out by competitors.
                                                                  (http://en.wikipedia.org/wiki/Economic_crisis_of_2008)

COMPETITIVE FORCESFor some time now companies have been outsources countless employees to India and other Asian countries. China has been a very dominant supplier for many companies located in the US. It appears that currently the superpowers of the eastern hemespere are outperforming the superpowers of the western. Only time will tell.

TECHNOLOGICAL TRENDS. A technological break that has forever changed the economy is the Internet. Businesses are able to communicate more quickly and powerfully. If the internet were a fair, the air would be filled with shouts of infinite number of companies yelling and advertising there services, not to mention the equally infinite amount of consumers browsing the paths. Automation is an issue with many skeptical eyes watching. Companies are exploring ways to replace an employing with a machine. Over the past decade, many aspects of life has become more automated - purchasing groceries, online banking, assembly line methods. The minds of innovators are frantically creating products that perform many duties. These mult-tasking products are catching the attention of the consumer world. Cell phone companies are competing to provide a phone that can do more than other's.

         (http://news.cnet.com/Eight-business-technology-trends-to-watch/2030-1069_3-6223397.html)

                               (http://www.cio.com/article/165405/Five_Key_Technology_Trends_for_?page=2)

LEGAL & REGULATORY FORCES. The United  States Federal Reserve is a prime example of a authoritative figure that has an ever-present influence in the economy. Critics are worried that the government has gotten its hands too deep in a mess and making this economic crisis worse; they believe the economy is a sensitive giant that if disturbed from his path, it will cause damage. "Let him be and all will work out," they say. Others propose that the government is doing the only and best thing in this current situation. The Monetary and Fiscal policies and other policies do serve its purpose.

Key Business Terms

Markets: The place where buyers and sellers meet and exchange services, products, and rights for the growth of an economy

Globalization: The process of the world becoming more connected - socially, economically, and politically; the good and bad that happens in a nation will affect in some way another nation

Emerging Markets: When a nation's economic status begins to rapidly develope in technological, business, and social advancements.

Trade Policy: Determines the conditions of international trade; nontariff and tariff specifications

Comparative advantage: When a nation can produce goods or services at lowers costs than other countries, therefore producing a greater profit

Strategy: A plan of action in order to accomplish economic gain

Value Creation: The process of increasing the value or effeciency of a product or service

Economics: The study of goods & services and its production, distribution, consumption, and managment.

Monetary Policy: The federal managment of the money throughout the nation; this amount is altered with the attempt to help change the economy for the better

Fiscal Policy: The federal managment of taxe rates, goverment expeditures, and loans. This is managment with the intent to maximize employment and prevent inflation

Inflation: The rate of the rise of services and goods; this decrease the power of the dollar

Dow Jones Industrial Average: The average of the collection of stocks from ~30 dominant companies in the market - it is a stock price index

Weak dollar vs. Strong Dollar: When the US dollar ($) changes value it affects the way other nations react economically - where they will invest. When the US dollar is weak countries with a stronger currency, for example the Bitish Pound (£), Euro (€), Yen (¥), tend to buy more US goods or assets since they can get more for their unit. On the other hand, when the American dollar is stronger, the trend is opposite - US companies tend to invest in European or Asian assets.


Charlie Rose and Thomas L. Friedman

I watched the the clip of Charlie Rose interviewing Thomas L. Friedman. What great insights this man has! I am very interested  now to read the latest version of his book, The World Is Flat. It is true that the world is becoming so much more connected with each other.
He illustrated really how more competative the world is now and becoming. Not only is there strict competition betweens companies, but also within oneself and his imagination. In order to suceed, I am to work as hard as I can and creative as I can.

                (http://www.charlierose.com/shows/2007/08/16/1/a-conversation-with-thomas-l-friedman)