This refers to new issues that are coming up as far as economic issues are concerned.
- Use of advanced technology-computers which have come up with new changes ranging from less paper work and many people are unemployed.
- E-Government-Application of advanced ICT to deliver government services
NB Outsourcing- It is management strategy by which an organization outsources major non-core functions to specialized, efficient service providers. The basic objective is normally cost reduction and concentration on core activities.
Benefit of outsourcing
- Time management
- Reduced staff costs
- Increased flexibility
- Cost certainty
- Reduction in staff management problems
- Improved consistency of service
- Reduced capital requirements
- Reduced risk
Problems of outsourcing
- Redundancy costs
- Quality of service maintenance problems
- Long term commitment absent
- Over dependence on suppliers
- Lack of suppliers flexibility
- Lack of management skills to control suppliers
- Possible loss of competitive advantage particularly in the loss of skills and expertise of staff
- Insufficient internal investment and the passing of knowledge and expertise to the supplier who may sieve the initiative.
- Emergence of automatic teller machines.
- Emergence of mobile banks.
- Emergence of customer care services department to handle financial matters only.
- Emergence of m banking
- Globalization-This is interaction and integration among people, companies and governments of different nations.
It is a process whereby different systems and parts of a related trade, function as a closely-knit system at the international level. Communication and transport have vastly improved and affects many aspects of economics from competition policy to monetary policy and agricultural policy.
- Mergers and joint ventures of institutions so as to increase the institutions capital base.
- Drug abuse menace.
- Pollution-air, water, noise and solid waste due to drastic economic changes.
- Environmental Corruption.
- Depletion of natural resources.
- Rogue economics-recent credit crisis shows how financial deregulation and globalization has contributed to many new problems which leave economies vulnerable to financial speculation.
- Pressure on commodities-the world is used to dealing with a situation of abundant supply of raw materials, but diminishing supply and growing demand threatens to change that. Oil prices are rising due to speculation and due to fact demand is simply rising faster than supply.
- Shifting balance of global economy-in post war period, US economy was dominant. The old phrase when America sneezes, the rest of the world catches a cold was very much appropriate. Sleeping giants have risen.
- Dealing with commodity shortages there is the introduction of government quotas, tariffs, protectionism etc.
- Growth of china economies.
- HIV aids menace.
- Emergence of consumerism movements-this is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers
- Destruction of environment e.g. lumbering, desertification etc.
- Emergence of fraudsters who produce counter fake products.
- Emergence of environmentalism movement-this is an organized movement of concerned citizens and government agencies to protect and improve people’s current and future living environment.
- Liberalization-this is removal of trade barriers-i.e. free trade.
- Regional economic integration- e.g. EAC, COMESA, PTA boundaries become irrelevant.
- Emergence of export processing zones-this are areas set aside by government where industries can set up firms to process goods for export at little or no charge.
- Enactment of new government policies ranging from quotas, rules, regulations and law enactment e.g. media bill, mututho law, traffic law and tobacco bill.
- Establishment of National Employment Authority(NEA) to address the issue of unemployment in Kenya
- Infrastructural advancement-Red lines in Thika super highway to usher in Bus Rapid Transit System, Direct flights to US( A major milestone)
- Crafting of National Addressing System to assist in dissemination of information.
- Emergence of drones in Rwanda to supply drugs in interior areas.
Business Ethics 1. Ethics: this is a set of moral principal that govern the action of an individual or group
- Social Responsibility Refers to the roles undertaken by business organization on the surrounding environment
APPROACHES TO MANAGE EMERGING TRENDS AND ISSUES.
- Restriction of lending capacity of money to citizens, challenge-increases money supply in economy.
- Huge taxation-challenge-increased demand of level of goods.
- Control imports-challenge-imported inflation.
- Rationing of foreign exchange-challenge-imported inflation.
- Control exports-challenge-shortage of domestic market product