This book is about how macroeconomic
This book is about how macroeconomic events are affecting
businesses everywhere. Most of the time, companies must focus on
microeconomic issues events in their markets, their industries, their
supply chain, and so on.
When the underlying structure of the world
economy changes, as it is today, companies have to take notice; the
opportunities are immense, but so are the dangers.
The availability of cheaper capital in the global markets, a reduction
in labor bargaining power, the rise of imports, the increase in cross-
border mergers and acquisitions, the opening up of huge markets such
as China and India, changes in public attitudes, demographic change,
and the e-revolution are just some of the factors in globalization.
They
are not going to go away, and companies that ignore them or fail to
understand the underlying reasons why they are occurring, are being
acquired or going out of business.
In Europe, for instance, Siemens has reduced its operating divisions from 15 to 5, as has Thyssen Krupp (from 23 to 8), Fiat's Agnelli family has sold 20% of the firm to General Motors, Daimler-Chrysler has purchased US company Chrysler and UK company Vodafone made the first hostile takeover ever to take place in Germany when it acquired Mannesmann.
Everywhere you look in the world, globalization is having an effect. It is probably having a financial impact on your company already. If not, it soon will.
NOTES
1 Bierce, A. (2000) The Unabridged Devil's Dictionary.
University of
Georgia Press.
2 Goldsmith, J. (1994) The Trap. Macmillan, London.
