Will Business Ever Rule The world

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We live in a world defined by personalization and unique product offerings. Many things had happened in human history, which call for intensive study. The world evolve on daily basis and business is the pivotal reason why these changes occur. In every field of human endeavor we see business being the driving force for it survive. We proffer solutions to the challenges that faces us. Let take a little journey on how business had changed and rule the world.

Agrarian Era

An era of human history, beginning roughly 10,000 years ago and lasting until the beginning of the modern era, when the production of food through agriculture was a central focus of many human societies, and a large number of people living in those societies worked the land.

agrarian civilization — A large, organized human society that relies on a large number of its members producing food through agriculture. May incorporate hundreds of thousands or even millions of people, and include cities together with their surrounding farmed countryside. Common features of agrarian civilizations include coerced tribute (“taxing”), specialized occupations, hierarchies, product offerings, state religions, kings or queens, armies, systems of writing and numbers, and monumental architecture.

Industrial Era

The industrial revolution occurred in a number of places across the world including England, North America, Continental Europe, Eastern Europe and Asia.

While the first phase of the industrial revolution, which took place between 1750 and 1850, began in England and then spread to Continental Europe and North America, the second phase of the industrial revolution,  which took place between 1850 and 1914, began in America and then spread to Europe.

The Industrial Revolution completely transformed the United States until it eventually grew into the largest economy in the world and became the most powerful global superpower.

Information Era

Product offerings through information

The Information Age (also known as the Computer Age, Digital Age, or New Media Age) is a historic period in the 21st century characterized by the rapid shift from traditional industry that the Industrial Revolution brought through industrialization, to an economy based on information technology. The onset of the Information Age can be associated with the invention of the transistor, particularly the MOSFET (metal-oxide-semiconductor field-effect transistor), which revolutionized modern technology and became the fundamental building block of digital electronics in the information age.

This is where we are in human history. Follow me through to the end of this post and see how your business has contributed immensely to the development of the world and why your business can rule the world through product offerings.

Corporations Control Government: Product Offerings

The US is the most powerful global superpower. Am going to use the US as my yardstick. The government corporation model has been utilized by the federal government for over a century. Today’s government corporations cover the spectrum in size and function from large, well-known entities, such as the U.S. Postal Service and the Federal Deposit Insurance Corporation, to small, low-visibility corporate bodies, such as the Federal Financing Bank in the Department of the Treasury and Federal Prison Industries in the Department of Justice.

The federal government does not possess a general incorporation statute as states do. Each government corporation is chartered through an act of Congress. The use of separate acts to charter each corporation has resulted in wide variance in the legal and organizational structure of government corporations. That said, the Government Corporation Control Act of 1945, as amended, does provide for the standardized budget, auditing, debt management, and depository practices for those corporations listed in the act.

Within the executive branch, no one agency is responsible for the oversight and supervision of government corporations. Neither the House nor the Senate have single committees with the responsibility to oversee all government corporations. Instead, each corporation is overseen by the committee(s) with jurisdiction over its policy area.

Congress at times has found the government corporation an attractive governance option. A well-designed and -operated government corporation does not require annual appropriations because it generates revenues from the provision of goods and services. Moreover, each government corporation may be endowed with the administrative flexibilities required to accomplish its goals while remaining responsive to Congress and the President. Finally, as noted above, the government corporation may be established to serve an enduring purpose or may serve as a vehicle for privatization.

Following are the some corporations that secretly “rule the world”:

10) Nestlé

Nestlé owns over 8,500 different brands in 80 countries, including Gerber baby food, Perrier, DiGiorno, and Hot Pockets. It also owns Butterfinger and KitKat. Every year, the corporation rakes in $90 billion.

9) Lockheed Martin

Lockheed Martin’s global military expenditure is just over $1.7 trillion. As EducateInspireChange reports, it’s no wonder companies producing and supplying weapons exert such as huge amount of power over world events.

8) Quanta Computer Inc.

Do you own a Mac, Dell, HP, Sony, or Toshiba computer? All of these come from the same manufacturer: Quanta Computer Inc

7) Inbev

Few people have heard of Inbev, but it’s a company to know. Inbev has a huge monopoly over the beer industry and has massive influence, as a result.

6) Pfizer

Pfizer — a U.S.-based global pharmaceutical corporation — makes $40 billion in profit. Every. Single. Year.

5) Pearson

Because the company has a monopoly over the education sector, it has been able to increase the prices of learning — and no one is able to stop them.

4) ICBC

The acronym stands for the Industrial and Commercial Bank of China. The bank is state-owned, and is now of the most powerful banks on the planet.

3) Monsanto

The company responsible for glyphosate — which is proven carcinogen — specializes in agricultural biotechnology. It’s estimated worth is around $65 billion

2) Disney

Kids and adults love Disney, so it probably shouldn’t come as a surprise that more than half of all highest grossing movies of the last decade are owned by Disney.  As a result, Disney has huge influence in the world.

1) Alphabet Inc

If you haven’t heard of this company, you’re not alone. But surprise, surprise, Alphabet Inc actually owns Google, making it one of the — if not the — most powerful company in the world.

Amazon has taken the lead that is why is not a secret. They are worth Billions of US dollar.

Business In Politics

Product Offerings by Politicians

It is blatantly obvious these people have no concern for their constituents, so why on earth did they choose a career in politics? The simple answer is that politics is just another business opportunity that pays better than most jobs, not only in South Africa, but worldwide. The £77k per year basic salary for Members of Parliament in the United Kingdom puts them in the top 5% of earners in the UK, and the $174k per year basic salary for Senators in the United States puts them in the top 3% of earners in the USA.

South African politicians, however, top this list. According to SARS 2016 published statistics, out of more than 19 million registered taxpayers in South Africa, only 19,834 are paid more than R1million – a relatively small number of people that, shock and horror, includes Members of Parliament, Government Ministers, Members of the Provincial Legislature, Executive Mayors of larger municipalities, Municipal Managers and members of Executive Committees in Metro councils etc. etc.

If you haven’t worked it out yet, a R1m+ annual basic salary puts most SA politicians not in the top 5%, nor the top 3%, but in the top 0.1% of registered taxpayers. In other words, 99.9% of South Africans earn less than most politicians throughout all levels of what we laughingly refer to as “Government”! High incomes, coupled with Napoleon Bonaparte’s observation “In politics, stupidity is not a handicap” explains why so many self-serving people are in political positions of authority. 

Taking Your Business Global

Global Business

If your business has seen successful growth in the U.S., it most likely will see success in other countries, as well.  And you may want to lock up those markets, before some other company does.  I recently met a startup that had successfully tripled its revenues, largely from the results of a successful international expansion effort.  I wanted to share those learning with all of you.

1. PICK YOUR MARKETS

There are 195 countries in the world.  How do you even know where to start?  Many U.S. companies go after the path of least resistance: in other English speaking countries, like Canada, the United Kingdom, Australia and New Zealand, typically in that order of closest to home.  While that is certainly a good strategy, a better strategy is figuring out which countries have the highest demand for your products.  For example, if you are selling into the auto industry, perhaps big auto markets like Japan and Germany may be the best place to start.  Like anything, there will be an 80/20 logic here, where 80% of your international sales will come from 20% of your international markets.  So, carefully prioritize your efforts.

2. PICK YOUR STRUCTURE

There are many ways to take your business global, with various levels of complexity and investment.  You are going to need to decide between opening your own office overseas, leveraging key in-country distributors or striking channel partnerships with key companies that have access to your target customers, based on your goals and budgets.

 And the solutions you use in one country, may not be the same solution you use in others, depending on the challenge in those markets.  For example, in China, you will need a local company to partner with, to help you navigate the local market.  Where you can, setting up your own efforts, either as a startup or via an acquisition of a local player, will typically exceed the results of piggy backing on the efforts of others.

 3. REVENUE BEFORE COST

Companies must not only create value but also capture it in the form of profits. By an overwhelming margin, exceptional companies garner superior profits by achieving higher revenue than their rivals, through either higher prices or greater volume. Very rarely is cost leadership a driver of superior profitability.

There’s nothing startling about the notion that higher prices can lead to higher profits, but we were impressed by the range of contexts in which companies have built businesses on this idea.

One of the two volume-focused companies is Merck, which globalized earlier, more successfully, and more aggressively than the Long Runner in the pharmaceutical trio, Eli Lilly. Merck followed the better-before-cheaper rule, refusing to compete on price relative to the alternatives in global markets.

But the lower price ceilings in those markets prevented the company from using gross margins as its primary source of advantage. Instead Merck drove volume by relying on the clinical effectiveness of its patent-protected medications.

Higher volume allowed Merck to achieve superior profitability through better asset utilization than Eli Lilly enjoyed, which was the main reason for the company’s higher ROA. (See the sidebar “Many Paths to Improvement.”) Just as you can lower prices while adhering to better before cheaper, you can drive out inefficiencies and lower your costs while following the revenue-before-cost rule. But don’t try to achieve a profitability advantage through cost leadership.

Focus on product offerings or render goods and services that will cause a leap in your company. Your need to take action!!!

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