MODULE WEEK NO.

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INITAO College
University
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Jampason, Initao, Misamis Oriental

College of Hospitality Management

CBMEC – 1: Operations Management
2nd Semester of A.Y. 2024-2025

Introduction

Which trends are reshaping the business, microeconomic, and macroeconomic

environments and competitive arena?
Trends in the business and economic environment occur in many areas. As
noted on the previous discussions, today’s workforce is more diverse than ever, with
increasing numbers of minorities and older workers. Competition has intensified.
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Technology has accelerated the pace of work and the ease with which we
communicate. Let’s look at how companies are meeting the challenges of a changing
workforce, the growing demand for energy, and how companies are meeting
competitive challenges.

Rationale
 Globalization also opens domestic markets to new competitors, decreasing
demand for local products.

Intended Learning Outcomes

At the end of this module, students are expected to:

A. Describe key characteristics of business globalization.
B. Able to explain global competition.
C. Give examples of the global nature of innovation.
Activity

For purpose of providing the students the ease of learning, following are the series
of activity.

1. Blended learning using multi media

2. Online discussion using Google met
3. SMS
4. Gmail and feedback mechanism using the above access.

Discussion

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Crafted by: Prof. Loida A. Cabaraban, MM-HRM, ARF, CTP
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Key Trends and Issues in Business

The environment constantly changes so organizations need to adapt and change

as their environment does. Globalization and new technologies have stimulated changes in
organizations. This varies from how they communicate with other organizations to the
manner in which they penetrate other country’s markets.
The Internet is a great tool that many choose to use as an advantage. E-business
is the use of the Internet for business transactions, and e-commerce is consumer-to-
business transactions.
Three technologies that can have major impacts on costs, productivity
and competitiveness are: 1) product and service technology, 2) process
technology, and 3) information technology. Information Technology is very important
because it is the manner in which businesses store, process, and send information.

Current Trends in Global Business

What Is Globalization?
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Globalization is the process by which the exchange of goods, services,

capital, technology, and knowledge across international borders becomes increasingly
interconnected. Globalization creates new opportunities for businesses to increase profits
by expanding markets and by allowing wider access to resources. On the other hand,
globalization also opens domestic markets to new competitors, decreasing demand for
local products. Arguing the advantages or disadvantages of globalization is a little like
arguing about the weather: it’s best just to admit it’s here to stay and then figure out how
it’s going to affect you.

Global Trade Policies

In addition to international organizations, countries make agreements among
themselves to reach trade advantages. There are four common types of trade agreements
(also known as trade blocs) with different levels of trade dependencies:
1. regional trade agreements (RTAs)
2. custom unions
3. common markets, and
4. economic unions
Watch the video that follows for a brief look at the advantages and
disadvantages of free trade among countries.

Key Characteristics of Globalization

Debates about the characteristics and consequences of globalization generally

focus on three areas: political, economic, and cultural. Globalization produces both
positive and negative outcomes in all these areas.

1. Political
For thousands of years, treaties have shaped international relations and led
to complex alliances. International cooperative bodies such as the United Nations and the
World Trade Organization exist today because of the increasing need for political
cooperation at the global level.
2. Economic
As a result of globalization, nations with limited resources can access goods
and knowledge that help to raise their standards of living.
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3. Cultural
Globalization has heightened the awareness of the many, many languages,
religions, cuisines, arts, literature, and dress that constitute cultures around the world.
Some people are worried, however, that cultures around the world are merging into a
“world culture” in the process of globalization.

Global Competition

Global competition means the competing organizations that serve

international customers through enhanced communications, improved shipping channels
and supply chains, reduction of trade barriers, and centralized financial institutions.

Why do so many businesses make the financial investments and take the high
risks involved with global business ventures? The chief reasons include the following:

Increased profits. A wider market and customer base means the opportunity to sell
more goods and services. Some countries have lower taxes, adding to the advantages of
moving production there.
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1. Greater access to suppliers for materials and at lower costs. If a cold snap in
southern Florida damages the crop of oranges for a season, juice manufacturers can
import fruit from another country.
2. Reduced manufacturing costs through access to cheaper labor. Even Levi’s, which
still makes its blue jeans in the United States, will pay Wipro $143 million over five years
to handle information technology, human resources, finance, and customer service.[2]
Motorcycle maker Harley-Davidson moved 125 jobs overseas. It is also well-known that
Apple has the iPad and iPhone assembled in China by contractor Foxconn, while parts for
the devices are made in more than 20 different countries.
3. Social and environmental concerns. Many US businesspeople are committed to
improving the lives of people around the world and working with international
organizations to address environmental concerns such as air pollution, clean water, and
climate change.
Top 10 Business Trends That Will Impact Growth Through 2022
Understanding what drivers will contribute to growth over the next few years will
inform your business strategy. According to the World Economic Forum’s “The Future of
Jobs Report 2018,” the top 10 business trends that will impact business growth through
2022, include:
1. Increasing Adoption Of New Technology
The top five strategic business drivers through 2022 are technology-related. It’s
no surprise that the Fourth Industrial Revolution and the new technologies that define it
will spur business growth, job creation and demand for specialist skills.
2. The Increasing Availability Of Big Data
According to the stated investment intentions of companies surveyed for “The
Future of Jobs Report,” 85 percent of respondents are likely to expand their adoption of
user and entity big data analytics by 2022. This will inform decisions and make for smarter
and more pointed innovations and investments.
3. Advances In Mobile Internet
Everywhere you look, someone’s face is buried in a smartphone. And that’s no
different all around the world. According to GSMA Intelligence’s “Global Mobile Trends
2017,” two-thirds of the global population are mobile subscribers.
4. Advances In Artificial Intelligence (AI)

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AI is already being used to increase efficiency, improve productivity and better
performance in manufacturing, technology, healthcare and other industries.
5. Advances In Cloud Technology
According to the stated investment intentions of companies surveyed for “The
Future of Jobs Report 2018,” 72 percent of respondents are likely to expand their adoption
of cloud computing by 2022. This will make businesses more agile, collaborative, efficient
and scalable while reducing costs.
6. Shifts In National Economic Growth
Combined with technology, socio-economic trends will have an effect on business
growth through 2022 onwards. National growth trajectories will have the greatest impact
in industries like aerospace, supply chain and transport; infrastructure; and mining and
metals.
7. Expansion Of Affluence In Developing Economies
Increasing access to technology and education will provide greater opportunities in
developing countries and therefore contribute to the expansion of the middle class. It will
have the biggest effect on the following industries: aviation, travel and tourism; chemistry,
advanced materials and biotech; and global health and healthcare.
8. Expansion Of Education
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The increased access to education is partly due to technology adoption rates, as

well as the expansion of the middle class. The industries most impacted by this socio-
economic trend are aviation, travel and tourism; mining and metals; and professional
services.
9. Advances In New Energy Supplies & Technologies
Decarbonization, emerging markets and resilience are to thank for increased
demand in renewable energy. Coupled with advanced computing power, new energy
supplies and technologies will drive business development in many industries.
10. Expansion Of The Middle Class
According to the World Economic Forum, the world has reduced the number of
people living on less than $1.25 a day by one-half and the world is on track to meeting the
Organization for Economic Co-operation and Development’s (OECD) 2010 forecast that the
global middle class could double by 2020 and triple by 2030. It is argued this is due to
urbanization, including greater access to education, technology and opportunity.

Exercise
Changing global demand for mobile phones
1. How is global demand for mobile phones changing?
2. What are the implications for handset manufacturers?
3. In 2017, the Trump administration hoped to renegotiate the North American Free
Trade Agreement with Canada and Mexico. The agreement covered tariffs, intellectual
property rights, and dispute settlement. The largest hurdles to the trade agreement were:

a. economic
b. political
c. cultural
4. Rob teaches at a community college. To enhance his “product”, he creates videos
for his online class, but editing the videos is beyond his skills. He uses Upwork to find
freelancers. Martin in Macedonia (Southern Europe) had the right skills, a low hourly rate,
and speaks English. The videos make Rob course more effective and attractive. Student
reviews on RateMyProfessor have been positive. Even though student enrollments have
dropped 20%, his classes have filled. Rob’s experience demonstrates one aspect of global
competition:
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Crafted by: Prof. Loida A. Cabaraban, MM-HRM, ARF, CTP
 MODULE WEEK NO.4
a. increased profits through access to more markets
b. reduced manufacturing costs through access to cheaper labor
c. social and environment concerns

Assessment

Reflection

1. Read topics discussed and do the following using the Content, experience, reflections,
application and evaluation (CERAE).

Resources and Additional Resources

 E-book
 Module
 PowerPoint
 Video presentation
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Additional Resources:
• Internet research
• YouTube
• Publish paper
 https://courses.lumenlearning.com/wmprinciplesofmanagement/chapter/
current-trends-in-global-business/
 https://www.gqrgm.com/top-10-business-trends-that-will-impact-growth-
through-2022/

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Crafted by: Prof. Loida A. Cabaraban, MM-HRM, ARF, CTP