3Q Economy Picks Up Speed-Offering New Economic Investment Opportunities

Gross Domestic Product (GDP) in the third quarter (3Q) of 2014 grew to an abundant  3.9%. It is always nice to see the economy grow, unemployment decline, housing recover, and consumer spending rise. What is the icing on the cake is the increased business investment that can tell us a lot about how big money is viewing the economy and its prospects. The reemergence of the American economy offers some new opportunities that were not possible in the past.

The global economy may be slowing, China and Europe are propping up their systems, but the U.S. has for a short time been clear from such programs. The slowing world economy should have investors worried but it hasn't. The sour international market may just provide investors a silver lining in the U.S.

The U.S. is not isolated from the global economy and certainly will have some challenges. However, as manufacturing parity improves and infrastructure strengthens the U.S. is in a better position to help investors take their capital and turn it into higher value products with international appeal. The right policies can encourage people to invest.

New investments impact two different aspects of society at once. Investment in declining manufacturing centers that have retained their infrastructure not only offers the best medium for economic development but can also  radically change the financial positions of residents, often minorities, that live in such areas and will benefit from new high paying jobs and ecological improvements.

We can't forget the growing income disparity in the nation and allowing investors to improve upon the lives of city residents while still earning significant profit cannot be underestimated as an important factor. Of course this requires pro-business investment environments that places businesses and residents in win-win situations. Policy makers need to look long-term and make the adjustments now to raise economic growth and better manage their budgets down the road.

As the investment environment falters in previous hot spots the U.S. is starting to look like a good place to invest again. It offers political stability, a growing market, strong infrastructure, and an educated workforce. Cities, that once stood as manufacturing centers, are ready for reinvestment in hub development at bargain prices. Investment brings jobs and jobs bring higher wages and better environments thereby raising the standards of those who live in these economically suppressed areas.

Analysis for Overcoming Global Business Challenges

A paper in the Journal of Knowledge Management, Economics & Information Technology by Siddhartha Ghosh attempts to explore the methods in which a business may implement a strategy after the global downturn. He argues that the three components includes innovation promotional practices, social and organizational welfare, and ethical behavior.  He discussed the concept of innovation and the overall process of development that should occur. As firms implement new strategies, they will find an increase in market success through the use of proper analysis to meet global challenges. 

I-Ideas

N-New Plan or Design

N-Noticeable Changes

O-Optimum Change Evaluation

V-Variety

A-Adaption to the New Environment/New Business

T-Thought process for planned change.

I-Ideological developments in business.

O-Optimization of changes.

N-Numero Uno (Being at the top of the market).

The author further contends that there are four major strategies to competing within the market 1. Holistic Business Strategy, 2. Polymorphic Business Strategy, 3. Green business strategy and, 4. Country-club business strategy.  Each of the four strategies help organizations navigate the market in different ways. Through the development of strategy frameworks organizations can finder higher competitive frameworks. 

Country-Club Business Strategy:  Such organizations seek to find innovations and development in the human arena. They look at human innovation, human behavior, human productivity, and other human elements. The goal is to develop people and manage them well to create advantages for the organization.  Organizations can consider the SMIRNOFF Analysis or MEDICATION Technique.

Polymorphic Business Strategy: When organizations are already moving upwards they should seek to design strategies for how far they can go. They may use a HAIRL Analysis, encouraging employee decision making, and define their strategies to maintain their growth. Such organizations should seek to maintain their current growth but set longer-term sights to perpetuate their growth to the top of their market. 

Green Business Strategy: As one of the most practical methods, organizations should seek to develop their product lines and offerings to create greater revenue. They may consider MARCO-POLO Analysis, SWOT and other opportunity-based evaluations.  Such businesses seek to continue to develop and grow their customer’s bases using existing platforms. 

Holistic Business Strategy: The holistic strategy attempts to predict where the business will be at certain points in the future so that the proper decisions can be made. They may consider CATAPULT Planning or PERFECT Forecasting in an effort to determine likely market trends and outcomes. The goal is to stay ahead of these trends so that management decisions and operations can be adjusted.

The author proposes that there are four basic innovative strategies in the market. He categorizes these four strategies and offers analyses that may be used in forecasting and understanding the business. As businesses march out onto the global gladiator, arena they will need to ensure they are seeking multiple methods of understanding their prospects and designing appropriate methodologies. 

Ghosh, S. (2012). Change in strategy-the answer to overcome the global downturn. Journal of Knowledge Management, Economics & Information Technology, 2 (4).