Flux Business Challenge Introduction Background to the Business Environment Guy Parrott 25 Feb 2010

Key Goals of Economic System Economic Growth Aggregate Output and Standard of Living Gross Domestic Product (GDP) & Gross National Product (GNP) Purchasing Power – Productivity – Balance of Trade – National Debt Economic Stability – Inflation – Unemployment Recessions and Depressions Global economy in 21 st century??

The Global Economy in the 21st Century Major forces driving the economy: The information revolution will continue to enhance productivity across all economic sectors. New technological breakthroughs will create entirely new industries. Increasing globalization will create much larger markets while fostering tougher competition among global businesses.

Emerging Challenges and Opportunities in the Business Environment Outsourcing is the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services Viral marketing is a strategy of using the Internet and word of- mouth marketing to spread product information. Business process management is an approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries

Customer Preferences and Tastes Customer preferences and tastes vary both across and within national boundaries. Consumer preferences can vary widely within the same country. Consumer preferences and tastes change over time.

Marketing 1 Out: Traditional Advertising The marketplace Monolithic The 4 P’s paradigm

Marketing 2 The WORLD: Internet Users (Million) : Penetration (%) Asia – Europe – N. America – Latin America – Africa – Rest – 37varies – Aus 53.5

Marketing 3 Some Trends: Green Grey Karma Social Media Transparency Social marketing

Where NOW / NEXT WOM – VIRAL BUZZ INFLUENCER EVANGILIST STREET STEALTH / UNDERCOVER WIDGET MASHUP ALL of the above take place through Web 2.0 (3.0) on SOCIAL NETWORKING platforms