Then, I will discuss Innovation reduce costs and improve product quality and how advances technology achieve the cost reduction and reserve the economic scale in good level. finally I will Study the Economic theories in market reader, clearifing how it could use and ably in the new economy. It may be helpful to describe the “old economy” before I talk about the “new economy.” From around 1938 to 1974, the economy was built on a manufacturing base geared toward standardized production (It was manual labor) (1). It was organized into stable, hierarchical and generally autocratic organizations. These organizations achieved a competitive edge in the market by making standardized products faster and more economically.
Globalization is the new notion that has come to rule the world since the nineties of the last century with the end of the cold war. The frontlines of the state with increased reliance on the market economy and renewed belief in the private capital and assets, a process of structural alteration encouraged by the studies and influences of the World Bank and other International organisations have started in many of countries. Also Globalisation has brought in new avenues to developing countries. Greater access to developed country markets and technology transfer hold out promise improved productivity and higher living standard. Countries around the world have closer over past few decades due to growing integration between economies.
Monczka (2002) suggested that after 1850’s greatest development of purchasing occurred, which makes a contribution to overall company profitability. The modern purchasing functions of the supply chain were applied in World War I and in the period of 190 to 1939 to purchase of raw materials with the particular focus on procuring raw materials. During World War II (1939-1945), the courses in the business logistics were offered in various US universities. After that value analysis techniques developed, pioneered by general electric in 1947, so the main focus was on satisfying consumer demands and growing industrial market. The main emphasis was given on finance, marketing, operations and research &
However, with broadening of the industrial market, profits of the company fell down. As a result, the management of the company took the decision to diversify the production operations by broadening the frames of the industrial market, including the production of not only industrial lubricants, but also technical compounds, dusters and cleaners (Sekhar, 2010). Thus, the new products belong to the same industry category with the respect to the production, marketing and present customers what can be identified as related diversification. So, within two years of the diversification Rocol Company managed to achieve a wider and more stable market, and maximize annual profits. Moreover, Rocol manufacturer expanded not only the product line,
This shift has been described as a “globalization,” characterized by the rise of emerging markets and the simultaneous economic crises in developed countries. Due to economic downturns, developed countries began moving production to emerging markets to take advantage of lower labor costs and more lenient regulations. However with this globalization technology continues to speed forward at an exponential pace (Ray Kurzweil Ted Talk). With the evolution of the world around us the role of the designers has evolved along with the changes of global development. Multinational corporations, who once sold the same product they developed for consumers in their home market and launched it in the global marketplace, now enlist designers to develop new products that will appeal to all the multicultural consumers of the world.
2.0 Literature Review In recent decades, businesses have generally seen a progressive trend in relation to internationalization, especially in the "second globalization" with its origins in the creation of the Bretton Woods system and the establishment of GATT after the Second World War. From here the rapid growth of relations at an international level is mainly due to technological expansion, liberalization policy trades and increased global competition. Increasing the degree of trade in the world has led to a situation of practical economic interdependence between counsels (Powers & Loyka, 2010). Companies extend their operations in international markets and have an intrinsic need for survival. Many are forced to market their products in
Jerry Y. Wind has argued that “Market opportunity analysis is key to the survival and growth of any firm including national and international companies , particularly in the competitive marketplace.” ( The Lauder Professor and professor of Marketing, The Wharton School, Trustee, The Philadelphia Museum of Art) . The ever-accelerated updating of economic and commercial brings about a great number of changes and challenges in modern society , especially in the expansion of marketplace and influence of market opportunity research and analysis for different firms . It seems that market opportunity is playing significant role .Recently Hi-Micro company was established and have identified that the on-going globalization of the world economy, its strategic location, and the existing market structure provide them with a potential opportunity to develop as an international high-tech computer market leader. In recognition of the risks involved, Hi-micro test the market of Innovators and Mercedes to examine the basis for the opportunity, assess how these two products measure up against competing other companies , such as Wellbox and KnLs , determine potential market niches, and develop a strategic marketing plan.
According to this perspective, the global imperative for outsourcing accelerates as firms evolve from sellers of products and services abroad to setting up operations in foreign countries and staffing those operations with host countries or third party nationals (Greer et al. 1999). Most corporations believe that in order to compete globally, they have to look at efficiency and cost containment rather than relying strictly on revenue increases (Conner and Prahalad 1996). As companies seek to enhance their competitive positions in an increasingly global marketplace, they are discovering that they can cut costs and maintain quality by relying more on outside service providers for activities viewed as supplementary to their core businesses (Mullin 1996; Grant 1996). Other researchers have identified several outsourcing issues, trends and strategies that companies take in establishing and effectively managing their outsourcing activities (Sinderman 1995; Carney 1997).
One of the most significant outcomes of World War II (WWII) involved the reversal of isolationism as foreign policy practiced by the United States and other countries. As political and economic tension eased around the globe, international trade became the new world order. Fueled by advances in airplane and ship building technology, most industrialized nations recognized the huge commercial potential of these machines and repurposed them into conveyers of merchandise and services to new intercontinental partners. This piece discusses the broad benefits of globalization; it touches on how it affects our lives, and it provides a brief look at the role globalization plays in the lives of our children. It begins with a broad look at globalization.
Strategic management is a concept that has evolved over time and will continue to evolve. Strategic management is relatively recent hence developments in industrial organization theory stress the importance of strategic behaviour by firms. 1.1 Management The classical approach to management are a set of ideas on management of organisations which developed in the late 19th century and early 20th century. This idea came from industrial revolution and focuses on efficiency. Towards the end of the 19th century, when factory production had spread and large organisations grew, many organisation started to look for ways to improve productivity and inspire (motivate) their employees.