Globalization, Management Sytems, Knowledge-Based Assets

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OTA 105878
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1. New Economy & Management

a. Understanding the US New Economy

A New Economy is referred to as the evolution of an Industrialized/manufacturing nation to an economy that has matured to providing services & leadership not only for its own people but as a service-based market has global reach. The US was continually booming and developing as an Industrialized/manufacturing nation since the beginning of the 20th Century. After the scare of the Great Depression, the economy slowly turned towards technology & assets, focusing on areas of operation that allowed it to create or innovate for technical advantage. Slowly, as America traded with the rest of the world, a global network took shape fuelled by the need to sell and create wealth from exporting & importing with new & existing international markets - Europe, South America, and Asia. Markets created for American goods became markets for American services as American investments to businesses & ventures abroad tied itself closely to domestic American Economy. Trade Agreements between the America & other nations facilitated strong relations built over through the years in peace and in war. As a nation, the US output after the War had always been at a high level, constantly performing well through the industrial/service sectors of the economy that has developed global reach creating unsurpassed wealth currently, despite market fears, still being seen as the biggest economy in the world at $13.8 trillion (2007 estimate). During WW2, the US government created an economy that supported Allied Efforts in Europe & Asia Pacific with a centralized hold in manufacturing & services as supplies, human resources, manufacturing networks & technologies had to be managed carefully & astutely to maintain not only the American people in its struggle but to support the Allied War effort which ultimately, succeeded and due to that heavily influenced post war global economic reconstruction from Germany to Japan. The Marshall plan was based heavily on US investments abroad to create dynamic economies in countries torn by war for self-sufficiency. One can argue that the democratic open market that has made Japan & Germany so strong was shaped by the Marshall plan. Its effectivity can still be felt being that said countries are consistent global performers, producing wealth efficiently & managing their economies astutely.

b. Service Based

Take for example the American company General Electric or G.E. G.E. was a powerful player in the US industrial sector since Thomas Edison first invented the incandescent lamp in 1876. Through the years of US growth as an industrial & economic power through the years of globalization, Edison's company grew from a small research lab into a Global Multinational Conglomerate. By the 1970's, G.E. has established manufacturing & Industrial activities abroad, relocating the Labour & Industrial part of the business in other countries where they developed a market or has an interest as the company's business interest spun many subsidiaries - GE Energy Infrastructure,GE Technology Infrastructure,GE Capital (for finance) and NBC Universal, the TV & entertainment arm. Slowly, the US operations became that of management & administration, managing the Global & national assets & business interests of the company, creating a truly global American multinational company that contributed to ...