Vision for Global business
( By P.Venugopal Iyengar)
Investors, Traders, Manufacturers and Service providers, all have to evolve from time to to time, a vision and business policy, due to rapid changes taking place all over the world. The changes are in Society and the political system, Nature (Environment) and Technology. Rapid expansion of communication and knowledge dissemination has lead to further globalization of business.
Stability
For any business, political and economic stability is important. Progressive democratization in the world has helped, to bring orderliness, rule of law, transparency and accountability in governance. It has also provided many economic opportunities to the people. Conflicts, ethnic and religious, territorial disputes, terrorism all arrest the growth and stability of business. Falling GDPs (Gross Domestic Product) of some countries in Africa and Middle East, indicates that violence, absence of rule of law and unrest in the political system are responsible for the failure in development of business. Progressive trend in the GDPs of Japan, U.K and U.S.A indicate the stability, the rule of law and growth achieved in these countries.
Population
Businesses move to countries where population is large, because healthy, cheap and reliable labor is available there. Populations of China and India are high and therefore labor is cheap. Population of some countries like Russia, Japan and South Africa are on the decline. It is due to high mortality rate and low birth rate. Labor is costly in these countries. In some African countries, there is lot of unrest, absence of rule of law, sea piracy and even civil wars. In addition to these, diseases like HIV, Malaria, T.B, Cholera, Deng fever etc prevail .Therefore labour force are much affected. Education and healthcare has suffered and businesses have moved away from these countries.
Nature (Environment)
A notable trend in every country is urbanization of huge population, especially in least developed countries (LCDs) Population move from rural to urban areas in search of employment and better facilities like medical, education etc. This can be arrested to some extent if Electricity, Potable water, better roads, transport facilities and incentive for employment in rural areas are given to the rural population. Some places suffer from soil erosion, desertification and deforestation.
Problems of cities are Pollution
(Air & Water), waste disposal, and housing shortage. There is large environmental degradation. Future generations should aim at healthy and productive life in harmony with nature. Pollution is caused by manufacturing, fossil use and land conversion. Rivers also get polluted. So, sound manufacturing and production technologies are needed. To avoid pollution, more and more electric cars are being produced now. Pollution control treaties are necessary. So also Carbon tax. As industrial use of water has increased, desalinization plants are being installed in cities near the sea to augment water supply.
Resource Management
Management of water, production and distribution of food and energy are major tasks in cities. Faster communication ,transport of labor and goods are also necessary.
Technology upgradation
As part of knowledge development, tele communication and software development has grown. This has resulted in shorter product development cycles, increased IT capacity and reduced cost. Developing countries have to invest more in higher education to boost skilled labor and productivity. Businesses move to places where cheap and skilled labor is available.
Information Technology
Developments in information technology has shaped businesses ,society and governance. Internet users have multiplied and hand held wireless devices are in abundant use worldwide. IT equipments and software requirements will further grow. All industrial processes and controls, training, retraining in private and government sectors , distance education electronic voting, and electronic payments all will give rise to new demands with privacy and national security.
Bio-Technology
Bio- technology has introduced genetically modified agro products .For example Soya beans ,corn and cotton. It has played an important part in human genome project and birth of cloned animals for improvements in health ,quality and utility. It has brought revolution in medicine .One can screen DNA to determine susceptibility to diseases. New drugs developed in animals will cost only 30% to 50% of those produced by current methods. Human organ repair
and replacements are going to be big business. This area will grow in the next 30 years.
Nano-technology
This technology is used to rearrange molecules to put atoms in most efficient place. For example, if we arrange atoms in coal, we can make diamond and Rearranging of atoms in sand to make computer chips. In clothing industry, using embedded nanoparticles we can create stain-repellant Khakis. It will impact dry cleaners and detergent makers. Other applications are in making stronger and lighter materials. Patents in this area are on the increase and Multinational companies like IBM, Dow Chemicals, Hitachi, Unilever etc are spending large amounts on research and development of Nano-technology. Manufacture of tools and equipments for Nano-products require high precision and is costly. Nano-lithograph is used in printing. Advanced Nano-technology is known as Molecular manufacture and it will greatly reduce costs. Nano- Engineering products are efficient and are of high quality. There is good scope for manufacture of Nano-products. In medical sector and environment ( for purification of water) more products are expected in the market.
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July 18, 2011
Austin, Texas, USA
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( By P.Venugopal Iyengar)
Investors, Traders, Manufacturers and Service providers, all have to evolve from time to to time, a vision and business policy, due to rapid changes taking place all over the world. The changes are in Society and the political system, Nature (Environment) and Technology. Rapid expansion of communication and knowledge dissemination has lead to further globalization of business.
Stability
For any business, political and economic stability is important. Progressive democratization in the world has helped, to bring orderliness, rule of law, transparency and accountability in governance. It has also provided many economic opportunities to the people. Conflicts, ethnic and religious, territorial disputes, terrorism all arrest the growth and stability of business. Falling GDPs (Gross Domestic Product) of some countries in Africa and Middle East, indicates that violence, absence of rule of law and unrest in the political system are responsible for the failure in development of business. Progressive trend in the GDPs of Japan, U.K and U.S.A indicate the stability, the rule of law and growth achieved in these countries.
Population
Businesses move to countries where population is large, because healthy, cheap and reliable labor is available there. Populations of China and India are high and therefore labor is cheap. Population of some countries like Russia, Japan and South Africa are on the decline. It is due to high mortality rate and low birth rate. Labor is costly in these countries. In some African countries, there is lot of unrest, absence of rule of law, sea piracy and even civil wars. In addition to these, diseases like HIV, Malaria, T.B, Cholera, Deng fever etc prevail .Therefore labour force are much affected. Education and healthcare has suffered and businesses have moved away from these countries.
Nature (Environment)
A notable trend in every country is urbanization of huge population, especially in least developed countries (LCDs) Population move from rural to urban areas in search of employment and better facilities like medical, education etc. This can be arrested to some extent if Electricity, Potable water, better roads, transport facilities and incentive for employment in rural areas are given to the rural population. Some places suffer from soil erosion, desertification and deforestation.
Problems of cities are Pollution
(Air & Water), waste disposal, and housing shortage. There is large environmental degradation. Future generations should aim at healthy and productive life in harmony with nature. Pollution is caused by manufacturing, fossil use and land conversion. Rivers also get polluted. So, sound manufacturing and production technologies are needed. To avoid pollution, more and more electric cars are being produced now. Pollution control treaties are necessary. So also Carbon tax. As industrial use of water has increased, desalinization plants are being installed in cities near the sea to augment water supply.
Resource Management
Management of water, production and distribution of food and energy are major tasks in cities. Faster communication ,transport of labor and goods are also necessary.
Technology upgradation
As part of knowledge development, tele communication and software development has grown. This has resulted in shorter product development cycles, increased IT capacity and reduced cost. Developing countries have to invest more in higher education to boost skilled labor and productivity. Businesses move to places where cheap and skilled labor is available.
Information Technology
Developments in information technology has shaped businesses ,society and governance. Internet users have multiplied and hand held wireless devices are in abundant use worldwide. IT equipments and software requirements will further grow. All industrial processes and controls, training, retraining in private and government sectors , distance education electronic voting, and electronic payments all will give rise to new demands with privacy and national security.
Bio-Technology
Bio- technology has introduced genetically modified agro products .For example Soya beans ,corn and cotton. It has played an important part in human genome project and birth of cloned animals for improvements in health ,quality and utility. It has brought revolution in medicine .One can screen DNA to determine susceptibility to diseases. New drugs developed in animals will cost only 30% to 50% of those produced by current methods. Human organ repair
and replacements are going to be big business. This area will grow in the next 30 years.
Nano-technology
This technology is used to rearrange molecules to put atoms in most efficient place. For example, if we arrange atoms in coal, we can make diamond and Rearranging of atoms in sand to make computer chips. In clothing industry, using embedded nanoparticles we can create stain-repellant Khakis. It will impact dry cleaners and detergent makers. Other applications are in making stronger and lighter materials. Patents in this area are on the increase and Multinational companies like IBM, Dow Chemicals, Hitachi, Unilever etc are spending large amounts on research and development of Nano-technology. Manufacture of tools and equipments for Nano-products require high precision and is costly. Nano-lithograph is used in printing. Advanced Nano-technology is known as Molecular manufacture and it will greatly reduce costs. Nano- Engineering products are efficient and are of high quality. There is good scope for manufacture of Nano-products. In medical sector and environment ( for purification of water) more products are expected in the market.
---------------------------------------------------------------------------------------------------------
July 18, 2011
Austin, Texas, USA
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