1) Introduction: Entrepreneurship- thriving in chaos Flashcards
What characterizes the 21st century in terms of change and uncertainty?
The 21st century is marked by continuous, unpredictable, and often turbulent change. The pace of change has accelerated, making it increasingly difficult to predict and manage.
change in usa vs. china
How does this view of change contrast with historical perspectives?
Historically, Western thinking leaned towards creating stability and control in society and the economy, believing that change could be managed through careful planning.
However, ancient Chinese philosophy had a different take. It viewed change as a natural part of life. Instead of trying to control change, it emphasized adapting to it.
What are some notable economic and political shifts in the 21st century?
- The US economy has experienced stagnation, with a decline in start-up activities over the past 40 years indicating a lack of entrepreneurial momentum and economic vibrancy.
- Conversely, China has witnessed unprecedented growth in non-state-owned enterprises, shifting from dependency on foreign innovation to leading innovation itself.
- This shift has resulted in a significant redistribution of economic power from West to East.
What is Economic power?
Economic power refers to the ability of an entity—such as a nation, corporation, or individual—to influence or control economic resources and outcomes. This power can manifest in various ways, including the ability to set prices, control production, dictate market conditions, and influence the distribution of wealth and resources.
Impact of shift in economic power from the US to China
As economic power has shifted, tensions between global superpowers have intensified. Trade disputes, particularly between the US and China, have led to the escalation of trade wars.
What are trade wars?
Trade wars occur when countries impose tariffs or other restrictions on goods from one another in response to trade barriers or perceived unfair practices. This typically involves increasing tariffs (taxes on imports), implementing quotas, or creating regulations that disadvantage foreign companies.
The goal is often to protect domestic industries, reduce trade deficits, or retaliate against another country’s trade policies.
What are the supporting and critical views of trade wars?
- Advocates say trade wars protect national interests and provide advantages to domestic businesses.
- Critics of trade wars claim they ultimately hurt local companies, consumers, and the economy.
What are the advantages of a trade war?
- Protects domestic companies from unfair competition
- Increases demand for domestic goods
- Promotes local job growth
- Improves trade deficits (imports > exports)
- Punishes nation with unethical trade policies
What are the disadvantages of a trade war?
- Increases costs and induces inflation
- Causes marketplace shortages, reduces choice
- Discourages trade
- Slows economic growth
- Hurts diplomatic relations, cultural exchange
What is WTO?
- Created in 1995, the World Trade Organization (WTO) is an international institution that oversees the rules for global trade among nations.
- The World Trade Organization (WTO) oversees global trade rules among nations and mediates disputes.
- The WTO has been a force for globalization, with both positive and negative effects.
What issues have arisen from corporate scandals and the behavior of major internet companies?
Corporate scandals, such as those involving Enron, WorldCom, and Volkswagen, have raised significant ethical concerns. Additionally, major internet companies like Google, Apple, Facebook, and Amazon have been criticized for monopolistic practices, tax evasion, and political influence. The misuse of data by these companies, particularly for targeted advertising and political purposes, has become a major issue.
What are Cookies?
Cookies are text files containing small amounts of data, such as a username, a session identifier, or tracking information. They are created by the web server when you visit a website and stored on your device by your web browser (e.g., Chrome, Firefox).
How Are Cookies Created?
When you visit a website, the web server sends a cookie to your browser. The browser stores the cookie on your device and sends it back to the server each time you make a request to that website. This exchange allows the server to recognize your device and remember information about your session or preferences.
What are the commercial reasons for companies to use customer data?
- Targeted Advertising: Companies use customer data to deliver personalized ads based on user preferences, behavior, and demographics. This increases the effectiveness of marketing campaigns by ensuring that ads are relevant to the audience, thereby improving conversion rates.
- Customer Segmentation: Businesses analyze customer data to segment their audience into different groups based on behavior, interests, or demographic factors. This allows for more customized marketing strategies and product offerings, improving customer satisfaction and loyalty.
- Product Development: User data helps companies understand customer needs and preferences, guiding the development of new products or the improvement of existing ones. By analyzing data trends, companies can innovate and stay ahead of the competition.
- Pricing Strategies: Data on customer purchasing behavior allows businesses to implement dynamic pricing models, adjusting prices based on demand, customer profile, or competition. This maximizes revenue by aligning pricing with what customers are willing to pay.
- Customer Retention: By analyzing data on customer interactions and behaviors, companies can identify at-risk customers and implement strategies to retain them, such as personalized offers or loyalty programs.
What are the political reasons for using customer data/user data?
- Voter Targeting: Political campaigns use data to identify and target specific voter demographics with tailored messages. This helps in persuading undecided voters or reinforcing support among certain groups.
- Opinion Shaping: By analyzing user data, political entities can craft messages that resonate with specific segments of the population, influencing public opinion on key issues or candidates. This can be crucial in swing states or districts.
- Microtargeting: Similar to commercial segmentation, political campaigns use data to microtarget individuals with personalized messages, increasing the likelihood of engagement and voter turnout among specific groups.
- Fundraising: Political campaigns use data to identify potential donors based on past giving history, political affiliation, and online behavior. This enables targeted fundraising efforts, improving campaign finance outcomes.
- Influence on Policy: Governments and political entities may use data to understand public opinion on various issues, guiding policy decisions or legislative priorities. This data-driven approach ensures that policies align with voter preferences, enhancing political support.
What is a monopoly?
A monopoly refers to the exclusive possession or control of the supply or trade of a commodity or service by a single company or group of companies. In a monopoly, the monopolist has significant market power, allowing them to set prices and control the availability of products or services without facing competition.
This often leads to higher prices and reduced choices for consumers since the monopoly can operate without the pressure of competitors.
How has globalization and technological advancement impacted communication and competition?
Globalization and technological advancements have created a highly connected world where instant communication is possible across the globe. This connectivity amplifies small changes, leading to rapid and unforeseen global impacts, such as the 2008 financial crisis. The internet has disrupted traditional industries, creating new competitive pressures and requiring companies to innovate continually.
What structural changes are occurring in the global economy, and how are they affecting large companies?
Many industries face profound structural changes, such as the shift from fossil fuels to renewable energy in the oil and gas sector. Large companies are increasingly focused on short-term profit generation, often resorting to monopolistic behavior rather than innovation. The ability to create new sources of competitive advantage quickly is becoming the only sustainable strategy in this rapidly changing environment.
What challenges do large companies face in responding to market and societal needs?
Large companies struggle to adapt to the rapidly changing needs of the market and society. They often focus on increasing shareholder value, sometimes at the expense of broader societal needs. The rise of the gig economy and increasing automation are exacerbating issues like income inequality and job insecurity.
What is gig economy?
The gig economy refers to a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. In the gig economy, individuals work on a project-by-project basis, often with flexible hours, rather than being employed in traditional, long-term employment roles.
How does the entrepreneurial mindset differ from traditional corporate approaches, and why is it important?
The entrepreneurial mindset thrives in uncertainty and is essential for navigating the chaos of the modern world. Entrepreneurs are flexible, innovative, and able to make quick decisions, which are crucial traits in today’s fast-paced business environment. This mindset contrasts with traditional corporate approaches that may focus on stability and long-term planning.
What is an echo chamber?
An echo chamber is a situation where beliefs or opinions are amplified and reinforced by repeated communication within a closed group, with little exposure to differing views.
How do echo chambers reinforce beliefs?
Echo chambers reinforce beliefs by constantly exposing individuals to information that aligns with their existing views, making those views stronger and more entrenched.
What happens to opposing views in an echo chamber?
In an echo chamber, opposing views are often ignored, dismissed, or excluded, leading to a one-sided perspective.