Difference between revisions of "Scenario 4 - Empire with Walls"

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==2010 - 2015==
==2010 - 2015==
[[File:manage.jpg|150px|right]]
[[File:manage.jpg|150px|right]]
In the beginning of 2011, the emotion across the world markets was gloomy. The second dip had hit the market and the fear was that Japanese episode of deflation and continued recession will recreate itself in the developed world. Governments in USA and EU were struggling to get the economy back on track. When the focus of the governments was on reviving the economy, on the other hand, the world was facing climate change disasters which were getting stronger year on year. and Germany announced its plans of investing heavily in wind energy. This was the beginning of government intervention in kicking of green projects that triggered the wave of green innovation. Many whistleblowers were drawing attention towards the nearing peak oil situation. Amidst these crisis situations, China was the new sun rising on the horizon. The Chinese government was disposing its vast reserves of dollars in return of investments all around the globe and yuan was appreciating steadily. China was transforming itself from low cost manufacturer to global innovation test bed. The innovation in Chinese companies was focussed on re-engineering products to cut costs and finding novel ways to manage supply chain. Meanwhile, the governments in US and European countries were discussing and debating the new reforms and regulation that needed to be put in place for sustainable economic growth in future. After heated debates and protests by banking heavyweights, the governments in the developed world initiated re-regulation of the financial markets, demerging of huge banks into its specialized components of retail banking, merchant banking and securities. The taxation laws and accounting rules were altered to clamp down on tax havens and transfer mispricing. This was reforming movement in the business models of financial institution. <br>
The world is still battling to recover from the global recession. Most western economies are battling several financial challenges that are occurring simultaneously; deficits, trade imbalances, rising unemployment, company fold-ups and bail outs. At the same time emerging economies like Brazil, China and India are expanding with previous year growth for China at almost 10%. With the suspected likelihood of a second global recession, developed countries establish new regulations and governments intervene in society to provide bailouts for companies, implement tighter financial regulations to prevent another recession and take greater roles in some private sector areas i.e. health care<br>
 
As the Eastern powers emerge, western companies begin to consolidate their businesses and streamline operational activities. in emerging markets with using smart innovation. Competition is still fierce and many of the companies are resistant to acquisition, breeding more collaborative and joint ventures prospects than straight-out acquisitions.  <br>
The stifling economic climate and saturation experienced in the West fuels the the searchlight on the African continent as the new hub of economic activity. Several discoveries of natural resources have been made on the continent, but there is a lack of the technical expertise and knowledge to refine these resources. This attracts Multinationals and global investment. the U.S. with a massive rise in trade volumes from $18billion in 2003 to $73billion in 2007. Thus begins a new wave of . <br>
The Major companies begin to explore opportunities in these economies. , but on businesses where creativity and learning environments are engineered by a strong mix of global culture and backgrounds and thus begins the focus on global staff recruitment, used to draw the best of what the world has to offer. of social platforms and networks promoting open innovation, who have been unable to find outlets to export their ideas and talent because of the struggling economies, where companies are not willing to take risks on untested technology. This is seen as a key platform to drive market-tailored innovation in these markets. Researchers have begun working with organizations to test the feasibility of using Functional brain imaging as a best-fit recruitment tool on a commercial level. <br>
There is a contrasting view to the approach to innovation; the lack of financial assets by western companies means innovation is temporarily taken from a cost effective approach i.e. several research and development centres are moved to emerging economies where wages and set-up costs are cheaper (Oracle and GE in India, Microsoft and Xerox in China). The emerging companies who have the financial wherewithal begin to invest in innovation projects that concentrate not only on price cutting but on strip-down re-modelling processes that produce goods and services that meet the needs of these markets. The western companies rely on government to raise funds to finance innovation projects as banks are still not loan friendly, and consumers have become spendthrift, with the gradual evolution of society to a saving culture. <br>


==2015 - 2020==
==2015 - 2020==

Revision as of 16:03, 10 September 2010

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