Difference between revisions of "Scenario 4 - Empire with Walls"
Jump to navigation
Jump to search
| (15 intermediate revisions by the same user not shown) | |||
| Line 19: | Line 19: | ||
==2010 - 2015== | ==2010 - 2015== | ||
[[File: | [[File:Enviromental pollution.jpg|200px|right]] | ||
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> | 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> | ||
[[File:risk.jpg|150px|left]] | |||
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> | 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== | ||
[[File: | [[File:IP 2.jpg|150px|right]] | ||
The application is not effective in developing countries where regulation and rule of law is lax and business continues as normal, encouraged by growing middle class. In the past, big corporations have found it difficult to produce tailored-made products for emerging markets, preferring to transfer their current products and business processes, which offer lower margins than their primary markets. To counter this, the new companies expand on joint ventures set-up, establishing subsidiaries and partnership with local entities, allowing them to manage operations faster and with less bureaucratic challenges. Unconstrained by legacy investments in capital equipment, processes, and technology, the working environment in these markets stimulates innovations that begin to breed profit in the companies. <br> | The application is not effective in developing countries where regulation and rule of law is lax and business continues as normal, encouraged by growing middle class. In the past, big corporations have found it difficult to produce tailored-made products for emerging markets, preferring to transfer their current products and business processes, which offer lower margins than their primary markets. To counter this, the new companies expand on joint ventures set-up, establishing subsidiaries and partnership with local entities, allowing them to manage operations faster and with less bureaucratic challenges. Unconstrained by legacy investments in capital equipment, processes, and technology, the working environment in these markets stimulates innovations that begin to breed profit in the companies. <br> | ||
[[File:risk management.jpg|200px|left]] | |||
The activities of emerging companies like Bharti Airtel, Tata and Godrej group benefit these economies through employment, increased productivity and a burgeoning middle class. The governments implement strict financial laws to ensure economic sustainability for their country but environmental regulation is still lax. <br> | The activities of emerging companies like Bharti Airtel, Tata and Godrej group benefit these economies through employment, increased productivity and a burgeoning middle class. The governments implement strict financial laws to ensure economic sustainability for their country but environmental regulation is still lax. <br> | ||
| Line 36: | Line 38: | ||
==2020 - 2025== | ==2020 - 2025== | ||
[[File: | [[File:IP .jpg|250px|right]] | ||
There are 2 new Sheriffs in town; China (the 2nd largest economy) and India (who are on the way to becoming the 3rd largest economy). They have taken the world by storm and have become major economic power brokers. Their corporations rival the Western traditionalists and half of the Fortune 500-listed emerging companies are from both countries alone. They have established themselves on strategic locations around the globe particularly in developing regions like Africa, Asia and South America. The penetration strategy is a bundle of low cost and customized innovation specific to the societal challenges in these operating environments. They do not present pre-conditions to doing business and do not interfere with domestic politics although their actions influence local policy decisions. They bring a lot of technical expertise, knowledge and skills which is acquired overtime by the local workforce through employment opportunities, training programmes and trade-free zone management established by these companies, thus establishing a transfer of knowledge process. The continent benefits from economic and infrastructural development and skill growth. However, the success has also becomes a threat; the invasion of the deputies. <br> | There are 2 new Sheriffs in town; China (the 2nd largest economy) and India (who are on the way to becoming the 3rd largest economy). They have taken the world by storm and have become major economic power brokers. Their corporations rival the Western traditionalists and half of the Fortune 500-listed emerging companies are from both countries alone. They have established themselves on strategic locations around the globe particularly in developing regions like Africa, Asia and South America. The penetration strategy is a bundle of low cost and customized innovation specific to the societal challenges in these operating environments. They do not present pre-conditions to doing business and do not interfere with domestic politics although their actions influence local policy decisions. They bring a lot of technical expertise, knowledge and skills which is acquired overtime by the local workforce through employment opportunities, training programmes and trade-free zone management established by these companies, thus establishing a transfer of knowledge process. The continent benefits from economic and infrastructural development and skill growth. However, the success has also becomes a threat; the invasion of the deputies. <br> | ||
| Line 42: | Line 44: | ||
==2025 - 2030== | ==2025 - 2030== | ||
[[File: | [[File:octopus.jpg|250px|right]] | ||
Governments begin enacting policies to control carbon emission and IP protection with only the strongest of the new deputies surviving under the new policy regime. <br> | Governments begin enacting policies to control carbon emission and IP protection with only the strongest of the new deputies surviving under the new policy regime. <br> | ||