Auckland International Campus

Bachelor of Applied Management & Graduate Diploma in Applied Management

BX770020 Strategic Management Assignment one on peter Drucker Global certainties and Management Challenges.

Submitted by –Aman Kohli(GDHM) Student I.D-1000021646

Submission Date:-23rd April 2015 Table of Contents

INTRODUCTION 3
1. Collapsing Birth-rate in the Developed World 3
2.Shifts in the distribution of Disposable income . 4
3. Defining Performance 7
Global competitiveness. 8
Growing Incongruence between Economic Globalization and Political Splintering 10
Conclusion to Drucker five principles of Global certainties on world business and whole society 11
References 12

INTRODUCTION
Every Business has a particular strategy to enable the organisation to achieve its desired results and excel in its field of operation As per peter Drucker he has highlighted 5 Major Global Phenomenon or trends which will effect not economically but socially and politically the work culture plus demographic and changes in the world .And business need to review its strategy again to succeed in unpredictable world and business and world environment.
Following are the five major phenomena suggested or foresighted by Peter Drucker.
The Collapsing Birth-rate in Developed World.
Shifts in distribution of Disposable income.
Defining performance.
Global competiveness.
The growing in congruence between economic globalisation and political splintering
Drucker wrote that the purpose of strategy is to enable an organization to achieve its desired results in an unpredictable environment. So contrary to what many believe, strategy is not about achieving results in a known and foreseeable environment, but an environment that is unknown and unforeseeable. In Drucker’s own words, it allows an organization to be “purposefully opportunistic.”
Drucker was never afraid to propose ideas which others may never have even considered, and this was certainly the case with the five environmental variables which he felt were phenomena so unique that they could safely be considered certainties and not just possibilities as we normally assume for fixed variables that we sometimes call “environmental.” Moreover, he believed that they were different from anything current strategies considered as they were not essentially economic, but were primarily social and political.

Our observation.

1. Collapsing Birth-rate in the Developed World
Here we have analysed three countries in our research and they are Japan, New Zealand and USA and see how they stand as per Drucker observation. For example Decreasing birth rate in japan Namako province in this district there are 1200 students were enrolled in 1980s now they have only 30 students who are studying in the school as fewer babies are born, where more than half of the population is 65 years old population, people are getting married in older age and unable to bear children , If this continue like this with in millennium japan will be instinct ,Because japan have a week social system and lack of family bringing culture ,As per research and new findings half of Japanese women is single and they see carrier as first priority and marriage later ,Japanese government doing desperate measures to bring or increase birth rate ,it is difficult for women to work and raise children on the same time ,and a culture is that encourages to work hard. And many don’t think it is serious problem of low birth rate, japan demographic problem and elderly is increasing and they need more health workers and there is strict immigration rules in japan is xenophobic and reluctant to allow immigrant worker and they are now investing in technology in elderly and house hold help robot, by year 2050 japan 50% population is over 65. and birth are falling hard and government by raising taxes and the retirement age , and current