Activity 2a.
An evaluation of opportunities and threats posed by megatrends.
| Megatrends | A key issue affecting the organization | Impact and implication |
| The shift in global economic power | The focus on global growth has shifted. We are seeing a global economy that is being rebalanced because Western economic domination is a relatively recent historical event that is in decline. | · There might be a variety of planned economies of Nippn as well as competing forms of capitalism. New global champions in strategically vital economic areas might be created/supported by planned economies.
· This can lead to a decline in the attractiveness of mature markets for both people and businesses. Governments may increasingly employ tax and regulation, as well as investment assistance, to compete. |
| Demographic shift | From economic power transfers to resource shortages to social norm adjustments, population growth in certain locations and population decline others can be blamed. Countries’ demographic trends are vastly varied. | · Governments in developed economies may be forced to raise taxes to fund social services as the population becomes older and declines.
· Pressure to produce employment, especially for the “have nots” and older employees may rise in society and the political arena (Kinget al., 2017).
· There may be an increased need for health care in economies whose GDP is expected to fall, which may necessitate re-engineering of health systems (and additional funding). |
| Industry 4.0 | Connectivity, automation and machine-learning are just a few of the buzzwords associated with Industry 4.0. A burgeoning Japanese company, Nippn, offers high-quality items at a cheaper price point than its competitors. The high-tech items produced by Nippn are also efficient in addressing new products that are ecologically friendly and focused on the needs of customers. | The incorporation of this megatrend has a substantial impact on the company’s quality and hence its sales. Nippn’s supply chain was simplified and its capacity to serve clients worldwide was constantly rising. The company’s research into food processing helps it provide low-fat and healthful goods, which in turn improves its brand value. |
| Rise of
Technology |
Increasing food processing technology and innovation, while also tightening technological regulations, is necessary to provide customers with new items. | Secondary processing of flour and other foodstuffs has been implemented. For this reason, Nippn’s operations are becoming more efficient and its sales are increasing. Furthermore, it is effective in enhancing Nippn’s market position. Research and development hasutilised cutting-edge technologies like Cloud Computing, Machine Learning, and artificial Intelligence in this respect. |
Activity 2b.
| Megatrends | The shift in global economic power |
| Recommendation | · It is possible that Nippn has a variety of planned economies, as well as rival capitalist systems. Planned economies may foster the development of new global champions in strategically important economic sectors (Lichtenthaler, 2021).
· As a result, older markets may lose their appeal to both consumers and enterprises. In order to compete, governments may begin to use tax and regulation, as well as financial aid, to their advantage. |
| Justification | There has been a shift in the focus of global growth from the West to the East, yet international trade will continue to rise. This will lead to more powerful economies in diverse regions, which will have more resources to defend and more resources available to invest in the defence and security of Nippn (Abeyratne, 2017). The move might also reduce certain countries’ dependence on traditional power projectors like the United States for protection and boost burden-sharing to ensuring that economic trade routes and free navigation are protected from unfriendly actors.. These supply networks will become increasingly exposed to cyber criminals engaging in industrial espionage, theft, or terror-based disruptive actions, as they strive to maximise national economic benefits throughout this transformation. |
| Potential implication | · Increasing economic and demographic expansion in the East will lead to an increase in ocean trade routes in the Pacific, which will in turn raise the importance of these routes. Maritime forces from around the world will need to work together to protect these routes.
· An unstable regional environment will be exacerbated by poor economic conditions and unreliable leadership who use bellicose words and behaviour. In addition to its immediate neighbours, Nippn poses a significant threat to other countries across the globe, especially the United States. · It will be difficult for the West to have a significant impact on regional security because of limited resources and an expansion of Western military in the Middle East and Africa. Nippn’s future power balance may favour greater cooperation and sharing of responsibilities. |
References
Abeyratne, R., 2017. Megatrends and air transport: legal, ethical and economic issues. Springer.
Elmahdy, Y.M., Haukeland, J.V. and Fredman, P., 2017. Tourism megatrends: A literature review focused on nature-based tourism.
Kalaitzi, D., Matopoulos, A., Fornasiero, R., Sardesai, S., Barros, A.C., Balech, S. and Muerza, V., 2021. Megatrends and trends shaping supply chain innovation. In Next-generation supply chains (pp. 3-34). Springer, Cham.
King, T., Cole, M., Farber, J.M., Eisenbrand, G., Zabaras, D., Fox, E.M. and Hill, J.P., 2017. Food safety for food security: Relationship between global megatrends and developments in food safety. Trends in Food Science & Technology, 68, pp.160-175.
Lebedeva, M.M., 2019. Modern megatrends of world politics. Mirovaiaekonomikaimezhdunarodnyeotnosheniia, 63(9), pp.29-37.
Lichtenthaler, U., 2021. Digitainability: the combined effects of the megatrendsdigitalization and sustainability. Journal of Innovation Management, 9(2), pp.64-80.
Linthorst, J. and de Waal, A., 2020. Megatrends and Disruptors and Their Postulated Impact on Organizations. Sustainability, 12(20), p.8740.
Pagliaro, M., 2019. An industry in transition: The chemical industry and the megatrends driving its forthcoming transformation. AngewandteChemie International Edition, 58(33), pp.11154-11159.
