“THE WORLD AROUND US” :“THE WORLD AROUND US”


Slide 2:WORLD AROUND US INTRODUCTION According to Peter F Drucker, there are five important areas which will bring far-reaching changes in the social and economic environment, and in the strategies, structure and management of business.


Slide 3:World Economy Business Integration Business Restructuring The Unseen Revolution International Politics & Policies. POINTS OF DISCUSSIONS World investment


WORLD ECONOMY :WORLD ECONOMY The world economy will be quite different from what businessman, politicians and economists still taken for granted. Reciprocity as a principle of international economic integration which has now become inalterable or irreversible.


BUSINESS INTEGRATION :BUSINESS INTEGRATION Business will integrate themselves into the world economy through alliances. The traditional forms of economic integration is trade & multinational company which will continue to grow in all likelihood. But the dynamics is shifting rapidly in the hand of partnership based.


BUSINESS RESTRUCTURING :BUSINESS RESTRUCTURING Business tomorrow will follow two new rules – To move work to where the people are, rather than people to where the work is. To farm out activities that do not offer opportunities for advancement in the senior management and professional positions.


THE UNSEEN REVOLUTION :THE UNSEEN REVOLUTION In1976 Peter F Drucker had written this book where he had pointed out an argument regarding the shifting of ownership in the large public held corporation in the form of representatives of the employees class. ie- a)Pension b)Fund c)Unit-Trust


INTERNATIONAL POLITICS & POLICIES :INTERNATIONAL POLITICS & POLICIES According to Ducker the first 40 years were of political continuity & the next 10 years will be of political discontinuity. Political life since1945 has been dominated by domestic economic concerns such as unemployment & nationalization. The basic policies are restoration of a worldwide market-based economy. These are responsible for rapid changes in international politics & policies rather than domestic economies are likely to dominate the 1990s.


WORLD INVESTMENT PART-1“Traditional investment has followed trade, but now trade is increasingly becoming dependent on investment” 1. U.S. exports in the year of the overvalued dollar would have been even lower ;- 2. Japanese heavy investment in manufacturing subsidiaries;- :WORLD INVESTMENT PART-1“Traditional investment has followed trade, but now trade is increasingly becoming dependent on investment” 1. U.S. exports in the year of the overvalued dollar would have been even lower ;- 2. Japanese heavy investment in manufacturing subsidiaries;-


WORLD INVESTMENTPART -2 :WORLD INVESTMENTPART -2 “Wages differential are not a major cause of world investment.” 1. Blue- collar labour rates are less and less important as factors in manufacturing production. 2. Industries like textile, cars, electronic assembly, etc had observed 8% labour rates.


WORLD INVESTMENTPART-3 :WORLD INVESTMENTPART-3 “ The major force behind world investment is, however, human resources.” Exporting goods primarily creates employment for blue-collar workers. Investing abroad in a multinational affiliate primarily generates employment for educated people in the home town.


CONCLUSION :CONCLUSION We live in the digital age and change is happening at much faster rate than before in history. The attention should be given on local, national and global events and issues.