The objective of this work is to demonstrate possession of the necessary competencies to apply the knowledge gained during the course. It is required to conduct a hypothetical analysis of one of the problems in the business and economy of the United States and propose a solution based on the theoretical models proposed in the course. Finally, the skills acquired during the module will be described. Some improvements that this course could take into account will also be mentioned.
The United States’ recent aspiration for economic isolationism was chosen as a topic for discussion. This trend, which can be explained as a kind of marketing response to similar trends in world politics, should be analyzed from the standpoint of strengths, weaknesses, threats and opportunities (Rabello et al., 2020). By applying these strategies to the problem of economic isolationism, it becomes possible to discover the most profitable business strategy for adapting to this rapid change.
The initial advantage of this trend is a significant reduction in the cost of transporting goods, logistics and integration of the company with representatives of other countries. The negative influence of this trend is the limited access to many goods from abroad and the need to fill this niche by organizing our own production without the proper competence. The closed nature and nationalization of economic sectors makes it possible for more productive and close interaction between companies and their possible productive merger. However, there is a risk of losing connection with the objective economic reality and the possibility of not realizing the changes that have taken place. Thus, using the SWOT analysis, it becomes possible to determine the current position of the company in relation to the global market.
The economic profitability and, in general, the status of the problem proposed for analysis can be effectively established through the Porter’s Five Strengths model. The task of the Porter model is to determine the level of competition in the market in order to realize further opportunities. The power of suppliers, one of the main forces, in the market, due to its isolation, only grows. This prevailing force puts pressure on the consumer as one of the units of the Porter model, depriving them of the possibility of an international range of choice of services and goods. Of course, in the context of isolationism, there are also advantages, including sifting the market from an excessive load of goods.
This particular ecology of the retail space deprives the risk of the appearance of substitutes for goods, due to the conservatism of the existing approach. But what is even more dangerous, this trend reduces the possibility of the appearance of another important power unit – new serious players on the market.
All these factors taken together make the level of competition low enough, as a result, fixing any large business to monopolists. The desire of the United States for a certain economic closure, which is an unconditional demographic change, eventually means that any change in international agreements can result in disruption of the work of a particular company. This transformation of the basic principles of the world economy thus requires integration with large national companies in the name of business survival.
The chapters devoted to the ethics of business negotiations and organization management seemed to me the most valuable material throughout the course. The art of communication and the skills of effective and efficient dialogue seem to be eternal values ​​that will remain in business despite all the rapid transformations. Perhaps the above-mentioned connection between political reality and the economic environment was insufficiently covered in the course of the course. It is the variability and unpredictability of the modern world that determines the constant need for business to rethink its own and consistently adapt.
Reference
Rabello R.C.C., Ruckstuhl K., and Sundaram D. (2020). Corporate human rights responsibility in times of increasing socio-cultural and political isolationism. In D. Crowther, S. Seifi (Eds.). The Palgrave Handbook of Corporate Social Responsibility. Palgrave Macmillan, Cham. Web.