World economy and global competitive strategies

The services sector industry is among the more active sectors in every economic unit growing at a faster rate than the rest of the components in every economy. The financial and professional services component for one are among the more strategic professionals tht provide clients with strategic analysis, focused direction, competitive market positioning and portfolio assessments across all segments of an economy. This sector, being one of the most active economic drivers in recent memory, has the in-depth industry resource, experience and clout in bringing the hands-on knowledge of making economic investments and positioning decisions in a dynamic and highly competitive manner in the markets. The services sector has grown by leaps and bounds during the last twenty years, integrating deep knowledge and proficiency of every markets they serve, international and national clout and influence in the major corporate management decision making in the primary industries specifically in the capital and labor intensive financial services sector, energy, property, communications, technology and tourism areas aligning strategies and projects, providing clients with forward-looking market analysis and scenarios which model both demand from every market and supply from competitors. With the intensive use of technology and knowledge-based proprietary databases and the dynamic, interactive analytical models of the globalization phenomena, the services sector is able to analyze and project the directional details of the markets, competition, capacity, risks and uncertainties of the global economy. Developing innovative strategies based on a detailed knowledge of demand, technology and competition in all sectors of the economic value chain, the unprecedented growth of the services sector ironically characterizes its own periodic collapses triggered by the sheer heavy weight of its strategic competitive responses to every demand emanating from the other sectors, primarily the agriculture and the manufacturing components. It is not to be underestimated that the influences of the services sector in the two other areas are significant, pervasive and encompassing and this alone has driven the globalization of the services industry to an extent never before imagined. For example, the influences of the professional services of big auditing and consulting firms in the services sector contributed and assured much to its stable growth during the last fifty years that this services area became one enabling force for globalization not only of its own sector, but the entire economic drivers from the agriculture and manufacturing territories. The series sector advise and consult with corporate and business unit executives to evaluate corporate performance; optimize resource and equity portfolios under different future scenarios and uncertainties and risks; assess competitive behavior, outcome and economic implications; and measuring business strategies against overall corporate objectives at the micro level and economic goals at the macro level. This paper therefore analyzes the world economy and makes a strategic competitive economic scenario forthcoming. In the process, this paper seeks answers to the following issues: 1) What are the tell-tale signs that are predictive of favorable and unfavorable global economic and financial scenarios? (2) What new competitive models are tempered by the new forms of economic and financial framework? (3) What is the sustainability of these models in face of the appurtenant risks and uncertainties of the emerging economic environment? (4) What relevance are these emerging strategic competitive models are to the concept of strategy mapping and in the realm of the balance scorecard? Scope and delimitation This study aims to cover the emerging global competitive scenarios and strategies in the services sector and does not include analysis of the agriculture or manufacturing sector. Likewise, this discussion limits itself to the current economic scenario of the first stage of post-2008 global meltdown and their implications towards the succeeding uncertainties of the ongoing turmoil in the financial sector. In addition, discussion extends to every financial market as Britain and Europe, United States, Australia, Singapore, Tokyo and Hongkong and even the emerging capital market in the Middle East. Similarly, discussions aims to center on the major economic drivers that dominate the competitive market place mentioned earlier. Significance of the study This study aims to analyze the economic, political, environmental, social, technological and legal viewpoints that impact the strategies prevailing in the competitive markets. Thus, this paper is determined to clarify the inputs that enable political units to craft economic policies aimed at stabilizing and enhancing the growth of the business sector. Business modeling is a sector that helps clarify the forces that create a phenomenon. Thus, this study will enhance the descriptive relationship among models and seeks to gather enough documented models to help predict phenomena . Thus, this will help allow optimization and maximization necessary to address a continuing environment of competition and the other problems that impacts upon every market phenomenon. Because of the increasing importance of the services sector in the global marketplace, this study will provide a synthesizing prediction of the emerging models of competition in the face of the growing complexity of every economic activity. The services sector and its unique contribution to global economic fundamentals The services sector provides the intangibles that characterize the qualitative directional guide and radar for all other sectors. These services are unique in the sense that corporate judgments and decisions are based on the cost-benefit analytical models that guide entrepreneurs and every unassuming captain of every industry to effective alternative options. When decisions are made, they are tempered with the competitive factors that mitigate or eliminate the risks while enhancing the success rates of choosing the most appropriate solutions. Examples of advisories and consulting projects distinct in the services sector include: (1) integrated corporate strategy development and financial modeling of old and emerging business issues; (2) market analysis and forecasts; (3) project concept optimization and advanced financial modeling; (4) capacity and value chain analysis; (5) risk management systems; (6) global marketing; (7) technology modeling; (8) educational technology, accreditation and certification; (9) quality assurance; (10) logistics planning and management; (11) reengineering consultancy; (12) off-shoring, outsourcing and multi-sourcing; and, (13) economic forecasting, strategic planning and strategic human resource management, among others. These services are the products of the competitive environment in the highly volatile knowledge-based sector and are expected to create greater economic impact moving into the next millennium as the services sector becomes tempered more with tightening capital and equity base as globalization gives way to a more complex type of globalization. Globalization at this point, shall have become more efficient but predatory. The unending shift of the markets in favor of those companies that are heavily underwritten by the services sector will continue to pervade every market making it even more sensitive and uncertain. Just like the appearances of the recessive depressions of the 1930s, the 1997 Asian financial crisis and 2008s, the unpredictability of the services sector is always a warning to its adherents – that the potentials of this sector is as open and lethal as the crises that are spawned by its abuses. Among the industries: manufacturing, services and agriculture, the services sector appears to have pervaded more the impact of the other sectors in the same way the GATT and WTO, the Asia Pacific Cooperation (APEX) agencies and the NAFTA that have influenced the markets of the developing countries in the process of protecting the interests of the developed states. Understandably, this protectionist groupings is expected to bring and create a leveling of the playing fields in business, but at whose terms? †¢ This sector advises many companies and economic units as well as governments on the implications of geopolitics and economic development for global and regional industry investments, whether foreign direct capital or the portfolio type that characterize television game showed. Our economic analysts combine a rigorous analysis of country, regional and global political and economic factors with in-depth understanding of how the markets operate. There is the assessment and impact modeling on companies and markets of economic importance and change, the sensitivity impact of OPEC decisions, economic developments and global supply/demand patterns. The services industry is an industry leader in understanding the dynamics of the energy sector. Using a unique methodology and framework to predict country and regional developments, there are provided commercially-relevant scenarios which enable clients to evaluate risk, assess opportunities and plan strategy accordingly. Examples of advisories and other consulting projects include: (1) assessment of the long-term investment risk in a new country compared with other assets in an independent's portfolio basis; (2) formulation of a global competitive strategy for every small and medium sized international company; (3) development of future political and economic scenarios and implications for every industry giving the accurate and genuine investment opportunities for a major players in the economy; and, (4) development of a regional access strategy for every major integrated company. The services strategies group offers advisory and consulting services primarily as well as real time online membership services to meet the needs of clients. The services industry is highly dependent on global competitive costs and demands explanations and implications from the services analysts. The business sector cannot afford not to know every economic driver? For more than two decades, 25 years to be exact, The service s sector’s economic and political risk experts have woven their deep understanding of the energy sector into a keen understanding of geopolitics. Thus, unique insights are provided into the economies of major economic producers, their development strategies and the sustainability of those strategies. The sector is responsible for advising many clients on business opportunities and entry strategies in emerging markets, leveraging their understanding of political risk and country politics. Thus, the services sector have benefitted from the importance it has given to the following industries: aerospace and defense, automotive and transportation, banking, chemicals, construction consumer products, energy and utilities, financial services, government, industrial manufacturing, insurance, metals and mining and pharmaceuticals The expertise of the services sector goes well beyond consulting and financial services. Using a unique methodology and framework to predict country and regional developments, the sector provides commercially-relevant scenarios which enable clients to evaluate risk, assess opportunities and plan strategy accordingly. Thus, competition in this area continuous to become stiff, hence extremely important. Thus, built with a combination of regional politics, economics, markets and global trends and technology, this analytical study is applicable to the business environments of the diverse industries and clients that benefit from their advisory system. Similarly, the sector’s and market experts provide clients an integrated approach to country, regional, local and global market trends resulting in probabilistic scenarios that help them manage the value of such undertaking. There is a need to combine the in-depth knowledge of the every sector with the ability to build and construct vertical and forward-looking geopolitical and economic risk models, such as the political and economic analysis of key producing markets, the wide and extensive power-mapping of key economic and political decision makers in the strategic sectors of the economy, getting insights into energy-intensive, value added sectors of the economy, national development goals, plans and capabilities, unconventional wisdom regarding complex markets, innovative approaches to interpreting country risk and identifying under-explored opportunities Strategic Competitive Functional Practices of the Services Sector The service industry, while still comparatively young compared to the other sectors will continue to grow and expand as the global economy gradually makes progress in the midst of the global financial turmoil which has stalled all momentum towards expected growth. The complexity and importance of their services to the business sector will determine the competitiveness with which this sector grown by leaps and bounds. To name a few, the business process outsourcing and offshoring sectors expands at a dizzying pace than before as corporate organizations continue to adopt reengineering measures to reduce cost to remain competitive. The fluidity of the professional services sectors in the health area represented by the nurses and other health experts have pervaded the manpower market all over and remains an extremely bright prospects for sustainability of countries with a high degree of services training to its people. Mutual regional agreements for the practice of professionals beyond borders are relevant issues being considered by regional economic summits and groupings such as Apec, Asean, Nafta and follows the pattern advocated by the GATT and the WTO. Thusm advanced form of services will replace traditional schemes: (1) global coverage with regional expertise where the services team of regional experts offer in depth expertise and collectively create an integrated, global perspective; (2) energy dynamics which helps maintain relationships with key sector delegations and provides insight into the effect on markets and local sectors by the services component; (3) industry leadership in understanding the dynamics of the energy sector. Using a unique methodology and framework to predict country and regional developments, the sector provides commercially-relevant scenarios which enable clients to evaluate risk, assess opportunities and plan strategy accordingly. In addition, its industry players are considered the strong backbone of the sector as they have steered the industry from nothing. Experience-wise service experts have previous background experience in the government and provide clients with insight on United States foreign policy formation, future policy directions and economic impact on various industries. Somehow, the framework of global competitiveness for the sector will continue to be governed by technology-based innovations and cost-efficient systems sustainable over the long term. Here, the impact of an important consideration as Climate Change Policy, our understanding of climate change policy that stems from the broad expertise in national and global regulatory regimes, and the interaction of long-term trends in politics, economics and technology. Regional Issues for Investors in the Services sector In Africa, the services sector provides consulting and advisory services to companies and governments on African geopolitics, political risk to investments, market strategies and competitive positioning in the region. Likewise, it also offers assessments of key linkages between Africa and other regions and the resulting implications to the economic environment prevailing. In Asia, the industry provides an on-the-ground expertise to clients focused on the region itself along market risks and strategies, competitive issues and regional geopolitics. In Europe, where the services sector is among the fastest growing component, the series sector maintains consulting advice with companies and governments on regional politics, the impact of regulatory changes and policies, market strategies and competitive issues. In Latin America, the services sector focus on tourism ands draw from their extensive knowledge of politics, economics and regulatory trends as well as on-the-ground experience to help clients anticipate policy shifts and improve strategic planning. Latin America's largest markets also offer major asset-liability resource-holders and grounds for clients to benefit from recognized expertise in geopolitics, economic markets, US foreign policy as it relates to the region and in-depth knowledge of the primary economic drivers of the industry. In providing integrated risk assessments and laying out future scenarios, the role of the services sector is to assist its clients to devise robust coordinative and competitive strategies unique for the region. In the Middle East and North Africa (MENA) region, the strategic focus is more on the uniqueness of the Middle East which recognizes services technology experts for the region. The market in Bahrain allows for greater interaction with clients in the MENA region along geopolitics, the economic impact of US foreign policy, the developmentalist strategies of the Gulf States and investment opportunities and political risks which are considered high in the region as they become more volatile in terms of strategy. A special emphasis of the services sector in the area is the government consulting efforts that is directed towards sustainable development and one that will allow governments to leverage their natural resources, diversify their business ventures and enhance human capital. In North America, the services sector continue to dominate the economic landscape at enhancing extensive knowledge about the impact of US energy, economic, climate change and foreign policy, allowing clients to benefit from our interaction with key government officials. In Russia and the Caspian area, the services sector which are heavily technology-based, experts write, consult and speak on regional oil and gas developments; regional energy strategies; economics and politics; M&A trends in the Russian oil sector; US foreign policy as it relates to the region; entry strategies; competitive trends and other associated issues that impact investments in the region. Service consultant and advisors regularly participate in senior-level delegations with representatives from both US and regional governments and private industry but mostly oil companies. Methodology The study requires a primarily qualitative approach of the descriptive types that brings and illustrates scenarios that accurately depict the answers the questions and issues earlier propounded. The first statement of the issue on the tell-tale signs that are predictive of a favorable and unfavorable global economic and financial scenarios require am inventory of the manifestations of market indicators that may likely result to either scenarios. The predictive validity of indicators is the subject of analysis and correlation. In the second statement, on what new competitive models are tempered by the new forms of economic and financial framework, the methodology explores specific or merging theories that explains and clarifies the new relationships of marketing, competitiveness, quality, pricing, technology and the buyer’s behavior. In the third statement on what the sustainability of these models are in the face of the appurtenant risks and uncertainties of the emerging economic environment requires the analysis of the stability of the models presented and their sensitivity to the changes occurring in the environment in the form of risks and uncertainties and are expressed in terms of low or high degrees in a scale of five. On the fourth issue on what relevance these emerging strategic competitive models are to the concept of strategy mapping and in the realm of the balance scorecard, require the matching of the competitiveness models with the functional models currently prevailing such as the Kaplan and Norton (2004) concept of strategy maps and balanced scorecard. Thus, the findings are expected to explain the competitiveness, the prospects of growth and the emergence of a new globalization model of the prevailing services sector. Documentary and situation analysis, economic cause and effect relationships, financial modeling and analysis are likely to show cause for explaining the competitive scenario for the service industry. Key informants, representing authorities in the area of economics, competitiveness and marketing contribute to the analytical processes that zeroed in on the phenomenon. An in-depth analysis is required to link instances with growth, emerging manifestations with symptomatic issues. Findings and Data Analysis The issue statements are again enumerated below to determine the results of the study as well as the implications and conclusions being propounded and established. Here, the research questions are reiterated and provided with analytical findings that support current economic theories. Telltale signs Tell-tale signs that are predictive of favorable and unfavorable global economic and financial scenarios are those manifestations that are likely to result in bullish or bearish market sentiments and may provide upbeat optimism or gloomy pessimism towards the future. Favorable economic scenarios are manifested by the following factors: (1) price stability of the product or services which implies a good balance of demand and supply of such product and services. This further explains the general stability of the supply chain applicable to the services sector such as the availability of an adequate number and quality of labor matching the industry needs. For instance, the outsourcing and the off shoring services sectors are steadily growing at a rate indicative of the normal growth in gross domestic product. These should be supported in addition by manifestations in the other areas of the supply chain such as political order and situation is a major supply area such as the Asian continent which are primarily the supply market for the services sectors especially the BPO manpower needs. In the professional services sectors, the availability of nurses, engineers, accountants, doctors, teachers, hospitality industry workers, IT programmers and web designers and other professionals is a significant factor in stabilizing the long-term prospect of the services sector. Thus, the participation of the educational sector especially the higher education institutions are critical in maintaining the steady and balanced flow of manpower to the industry in terms of quantity and quality provided. Any form of imbalance is likely to create a demand and supply gap that is likely to translate into price differences and either to the advantage or disadvantage of the employer and employee. Growth areas in the services sector will continue to be dominated by the BPO industry which includes back office services provided by the accountants and financial services providers, health care workers, hotel, restaurant, tourism and culinary experts. Geographically, the Middle East and North Africa (MENA) region is likely to become a prominently rich areas for the services sectors tempered only by sporadic issues of conflicts between and among the native Arab constituents which will concentrate the services sectors in the more politically stable Arab nations such as the Emirates, Kingdom of Saudi Arabia, Kuwait, Egypt which are becoming the favorite destinations of service professionals due to its lucrative compensation packages. Other growth areas considered include the American services market which serves as the area expect to pump prime and jumpstart back the economic stimulus packages provided by the US administration. In addition, the Australia-New Zealand market is likely to dominate the Asian region next to India primarily driven by efficiency factors while India’s competitive advantage is its low-cost technical service providers in the dominant BPO industry. Although China and Korea are fast becoming the hub of pr ofessional teachers and education providers, the Asian market is expected tube the primary beneficiary of its own competent manpower supply. This is similarly the case of Europe and South America which adequately provide and supplies its own service providers primarily in the tourism and professionals sector. The North American market will likely be dominated by the Canadian demand as the country opens up its doors to professionals from all over the world. Nevertheless, off-shoring and outsourcing services are expected to continue its upbeat growth rate over the long-term. However, it is likely that the shifting from outsourcing to the off-shoring area will be more pronounced as labor costs offer competitive advantage to a host country. Nonetheless, the primarily considerations for the BPO industry is similarly shifting from the cost factor to the quality factor. Emerging Competitive Models The new competitive models tempered by the new forms of economic and financial framework are expected to be along the cost-quality market factors. Traditionally, cost considerations have been the primarily competitive factor in the services sector. However, the growing matching of cost and quality character of providers is becoming the defining standard in the competition. It appears here, that the cost considerations are slowly becoming a secondary option for buyers of services as the industry shifts its priorities towards the quality dimension. Thus, the Asian services market has slowly adopted the cost-quality model which is attributed to be factors in further stabilizing the services. On the other hand, the cultural factors of manpower providers are slowly gaining adherents in the industry considering the ability of the cultural dimension to enhance or denigrate the quality dimension in the delivery of services in the sector. Thus, certain preferences have started to be a consideration in terms of hiring. Filipinos, for instance, are becoming favorite preferences for teachers in China and Korea because of their cultural background in the languages that enabled them to become the fourth largest English speaking country in the world. India so far has dominated the BPO industry because of its technology-driven educational sector that is consistently being developed by the government. Sustainability versus risks and uncertainties Risks and uncertainties similarly will characterize all moves in the competitive services market. The cost-quality-culture model of competitiveness is likely to dominate during the medium to long-term as markets start developing their niche in the services sector. Incidentally, the services industry has been primarily driven by the ability of the providers to integrate the values of their culture with the value-needs of the sector. Slowly, the cost-quality-culture model is being enhanced and made more marketable by the cross-cultural and social migration factors that gradually demands the quality of immigrants or permanent residents admitted in a host country like Australia, Canada, the United Kingdom and the MENA region. Other emerging models indicate the growing preferences for the language and skills qualifications of professionals as they are slowly absorbed by the host country. However, the risks and uncertainties faced by the services sector include the factor of cultural resistance as migrants and overseas workers assimilate themselves into the society of the host country. Formal ethnic groupings are likely to increase which will likewise increase the racial tensions and discriminations inherent in the host country. Thus, the social cost of the services sector is likely to cause short-term cultural irritants especially for ethic groups with high militancy backgrounds. Relevance of Models vs Strategy Maps and the Balance Scorecard The emerging strategic competitive models and the concept of strategy mapping and the balance scorecard principle (Kaplan & Norton, 2004) are heretofore being matched to create relevance and purpose in the models emerging in the economy. The balanced scorecard and strategy map concepts appears to be where the services sector is heading form refinement. These concepts defines strategies along four perspectives: the financial, which assures corporate profitability for shareholders; customer satisfaction which assures clients on the quality of the services; learning and growth, which provides investments in training and development to the human capital; and the internal business processes that demands the use of appropriate technology processes in providing services. Here, the prospects of the models have the making of an extremely positive framework for rendering services in the industry. The stakeholder concept of management and decision making demands that business decisions be tempered with the interests of all stakeholders in mind, such that no sector or perspective becomes underserved and neglected. Fairness and impartiality is paramount and immortal. These models, perhaps is the best road map the services sector can design and sustain. The services sector is likely destined to become a very potent sector in the next generation employing a large majority of the working age population at the least and the highly intellectual sector at the most. Henceforth, this economic component stands to be the most productive resource in any economic unit. The fluidity of the world economy will always welcome new shifts in thinking as well innovation in the way services are being delivered. In due time, the delivery services will concentrated through information technology processes that may reduce the physical component of the industry, that is, investment in physical assets will shift to the burden of the worker as services are rendered from home areas and no longer from fixed buildings and offices. In fact, off-shoring is virtually an outsourcing done away from the country. The situs of work is becoming mobile. This implies the intensive use of technology as man opts to become more multitasking and productive in the most feasible ways than ever. Although many sectors in the service industry will continue to be in the actual place of business, but the change in the configuration of how services are delivered in some areas will likely create a new industry or a form of industrial revolution that allows doctors to treat their patients miles away, accountants analyzing clients’ financial statements from another country, bank clients interacting with their banks in all financial transactions that virtually makes use solely the ATM equipment, nurses automating and teleconferencing with in-patients and outpatients on home care, call center agents investing in their own VOIP and serving the company in the comfort of their homes, teachers using high-end technology in virtual contact with his or her students through teleconferencing in a virtual room, engineers designing and monitoring projects through rooms filled with LCD monitors projecting all possible angles of the project, or computer programs and website developed in the worker’s own laboratory. All these components of the service industry realigning to form a new form of services sector that are home-based or away from the usual work sites—called the offsite services sector. The potentials of this emerging sector becomes tremendous when one considers the effects in terms of less manpower and capital expenditures outlay on the part of the company and less personal expenses in moving to and from work such as gasoline, clothing, meals, work stress, travel risks and more of family time, leisure and quiet healthy decision making processes away from the chaos of the company premises. The services sector has a unique characteristic, and that is the substance of the services is intellectually conceptualized, hence there is no need for physical presence. The other half of the services sector definitely requires physical presence like the tourism and the hospitality industry, the traditional hospital and medical care services, accountants on actual hands-on supervisory work, managers that physically supervises handling of the movements of logistics and resources, etc. Conclusion The potentials of the services sector are one that virtually creates unlimited prospec ts for the economy. The industrial revolution expanded man’s opportunities that practically opened new doors for other industries to be born, such as the technology revolution, the knowledge age, the atomic era, the period of corporate social responsibility as an inescapable perspective in the conduct of business. Managing the world economy through the next generation is one gigantic responsibility that demands a new form of working with tasks and people. The sensitivity of every stakeholder in the conduct of business similarly demands impartial attention to their expectations which should not be left to the corporate background and be given lesser priority. Likewise, managing the services sector of the economy demands investments in the human capital and the peripherals of services. Thus, considering the high degree of volatility and fluidity of the services sector, the future of the industry remains as upbeat as any optimist can be. Man’s responsiveness to the emerging models of the services sector should enable him to reconfigure his thinking, shifting not simple paradigms but merging those old thinking with innovative components that not only redesigns old ideas, but keeps them to create balance between technology of the past and the emerging innovations of the present. Man is not likely to stop reinventing himself. The services sector is the vehicle of that reinvention. Thus, it is the core of this thesis that the various industries, the services sector especially, need to reconsider currently existing models such that these gradually matches man’s need for identity, relevance, dignity and immortality in terms of innovation gratitude.