MKC2610 Lecture Notes - Lecture 2: Baby Boomers, Industrial Revolution, Malthusian Trap
6 Jun 2018
School
Department
Course
Professor
Week 2 Lecture
Learning objectives/overview
• Overview of the world economy
• Market characteristics
o To what extent is the economy integrated?
o What factors that are used to analyse the environment
o Measure market potential
• Economic integration
External environmental forces confronting retail firms
• Socioeconomic environment
• Behaviour of consumers
• Behaviour of competition
• Behaviour of the supply chain
• Legal and ethical system
• State of technology
Overview of world economy
Economy: network of producers, distributors and consumers of goods and serveries in a
local, regional or national community and the activities of these institutions and individuals
World economy: Activities connected with each other à Material dimension of our world
• Marketing activities belong to economic activities
• Production, distribution, consumption à marketing mix is related to economical
activities
• Economic integration has increased from 10% in the early 20th century to 50%
• Global competitors displaced/absorbed local ones
The new realities
• Capital movements replace trade as driving force of world economy
• Money moves in a form of purchasing foreign currencies
• Movement of goods and services
• Economies are much more connected with each other à instant movement
• If they are advanced in the production process à they don’t have a lot of people
• World economy is the dominating factor
• Capitalism vs. socialism
• E-commerce reduces importance of national barriers and forces companies to re-
evaluate their business models
Document Summary
Learning objectives/overview: overview of the world economy, market characteristics, to what extent is the economy integrated, what factors that are used to analyse the environment, measure market potential, economic integration. External environmental forces confronting retail firms: socioeconomic environment, behaviour of consumers, behaviour of competition, behaviour of the supply chain, legal and ethical system, state of technology. Economy: network of producers, distributors and consumers of goods and serveries in a local, regional or national community and the activities of these institutions and individuals. The new realities: capital movements replace trade as driving force of world economy, money moves in a form of purchasing foreign currencies, movement of goods and services, economies are much more connected with each other instant movement. Industrial revolution: began 1760, machines replaced handmade as a production method during this period, human beings can produce items at a much faster speed than previously, example: michale faraday invented the electric motor in 1821.
