Chapter One Major Trends Affecting Canadian Business
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1 Chapter One Major Trends Affecting Canadian Business Copyright 2000 McGraw-Hill Ryerson Limited 1
2 Two Main Trends! 1. The Technological Revolution! 2. The Globalization of the World s Economy Copyright 2000 McGraw-Hill Ryerson Limited 2
3 The Technological Revolution! The rate of technological change continues to accelerate! Information age has arrived! Distance is shrinking due to better transportation & communications! Business operations are changing more rapidly than ever before Copyright 2000 McGraw-Hill Ryerson Limited 3
4 The Information Age?! Computers, faxes, modems, cellular phones are all available, even in cars! Communication is easier and faster! Enhanced competition means shorter response times are necessary! Information is now a competitive tool - Best Information Wins Copyright 2000 McGraw-Hill Ryerson Limited 4
5 The Globalization of Business! International trade is not new - Marco Polo, Voyages of Discovery, etc.! Integration of global trade, investment, manufacturing, purchasing and financing is new! Globalization depends upon new travel, communication and transportation capabilities Copyright 2000 McGraw-Hill Ryerson Limited 5
6 Canada and the Pacific Rim! British Columbia leads the country in trade with the Pacific Rim! Canada does over 80% of its trade with the U.S.! B.C. has only 63% of its trade with the U.S. due to its trade ties with the Orient! Immigrants, entrepreneurs, and capital from the Pacific Rim have flocked to B.C. Copyright 2000 McGraw-Hill Ryerson Limited 6
7 Big Business Cuts Costs! Restructuring - computers have allowed companies to become lean and mean.! Employee Empowerment - has led to cutting the fat at the management level.! Quality - Edwards Deming taught the Japanese that quality can cost less not more. We are relearning this lesson. Copyright 2000 McGraw-Hill Ryerson Limited 7
8 Small Business: It is Dynamic! This sector creates most of the new jobs. Most Canadians have worked in a small business! Home-Based Businesses are the fastest growing sector of the economy; they are technology driven! 40% of the workforce are expected to telecommute in the near future Copyright 2000 McGraw-Hill Ryerson Limited 8
9 The Service Sector! This sector includes government, hospitals, schools, etc.! The growth rate for employment in the service sector is over 3 times the rate of growth in the goods sector! In 2000 over 78% of all workers were employed in the Service Sector! Copyright 2000 McGraw-Hill Ryerson Limited 9
10 Manufacturing in Canada! Canada was the 4th largest manufacturer in the world at the end of WWII! 1945 to 1995 manufacturing accounted for about 20% of GDP! 1945 to 1995 manufacturing declined from 30% to 15% of the workforce! Our economy needs a strong manufacturing sector to go along with a strong service sector Copyright 2000 McGraw-Hill Ryerson Limited 10
11 Population Trends! Demographic trends have a huge effect on the economy! The post WWII baby boom dominated the economy in recent memory! The Pill and declining birth rates since the 60s has touched everyone - schools, teachers, real estate developers, etc.! Immigration has off-set some of the effects of declining birth rates! Our population continues to age! Caring for the aged is a growth sector in our economy Copyright 2000 McGraw-Hill Ryerson Limited 11
12 Environmental Issues! Population growth, industrial expansion, new processes, new chemicals, insecticides, automobile exhaust, waste disposal, hydrocarbon burning, etc., all contribute to environmental problems! Recycling and sustainable development are being proposed Copyright 2000 McGraw-Hill Ryerson Limited 12
13 The Good News Is!! The 1990s has seen unprecedented economic growth in the U.S.! Canada has lagged far behind the U.S. but our economy began to improve as the 1990s drew to a close! Information Technology (IT) leads the way! There are over 20,000 unfilled jobs in the IT sector! This shortfall is growing! Copyright 2000 McGraw-Hill Ryerson Limited 13
14 The Bad News Is!! The 1990s has seen a growth in GDP as our economy has recovered from the recession! The recovery has been a Jobless Recovery - the number of jobs did not increase! Unemployment has remained high, finally falling to about 7% as the decade closed! Increased productivity has meant a decline in jobs worldwide! Copyright 2000 McGraw-Hill Ryerson Limited 14
15 The need for more education continues Adults with a degree beyond high school % 28.1% 25.2% 23.3% 20.7% Copyright 2000 McGraw-Hill Ryerson Limited 15
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