1. Dynamism creates opportunity as well as constraints. Identify the most promis
ID: 1180756 • Letter: 1
Question
1. Dynamism creates opportunity as well as constraints. Identify the most promising opportunities facing companies from advanced markets. Then do the same for firms from developing markets. How are they similar? How are they different?
2. Looking out over the next decade, estimate the likely standards of value creation. How would you advise a company like IBM or Cisco to configure and coordinate its value chain to prosper in this environment? Would you give the same advice to a company like Tata or AirTel
please answer the these questions. thank you
Explanation / Answer
Answer: besides constrains, the existence of dynamic in the market provides both companies from advanced and developing markets opportunities to strengthen their business. For the companies in advanced market dynamism could give them chance to expand their business by allowing the companies to utilizes technologies to reduce their total production cost and also the advancing information technology will sure gives a lot of help on the marketing of products. In the other hand dynamism also provide opportunities for the companies from developing markets, the developing markets let the companies to be able to produces goods in great quantities to reduce the production cost of each goods.
Second, emerging markets can get investments from more advanced economies and form profitable partnerships.
Third, may emerging economies have lot of natural resources. For example, some of the countries in South America have the greatest amount of resources like copper. The world will need copy to continue to build and so they will need more copper. So, if these countries monetize these commodities, they will be very profitable.
answer 2:The economic situation is not great. In view of this, there are several ways to help a company like IBM or Cisco (technology companies).
First, cost cutting is a good starting point. Many companies spend way too much money without even knowing it. For example, not everyone has to fly in business class, especially on domestic flights. Also corporate functions can be toned down.
Second, to promote growth, these companies should really seek to expand overseas. The BRIC (Brazil, Russia, India and China) nations are going to lead the way in the future. Their economies are much healthier and are much better position in terms of debt.
Third, they may want to see if they can win government contracts for infrastructural ventures.
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