Contemporary Management Issues: Global Economic Power Shift by 2050

This report presents a long-term economic projection indicating a gradual transfer of global economic power to E7 nations by 2050, with a projected doubling of the world economy by 2042. The growth is expected to be driven primarily by E7 economies, with China anticipated to be the leading economy, followed by India and Indonesia. The report also assesses the impact of social change on Walmart's business processes, emphasizing the need for innovative strategies to stay ahead. It discusses the challenges and opportunities for businesses in emerging economies, including the importance of structural reforms, technological advancements, and adapting to local market preferences. Furthermore, it highlights the potential for E7 countries to surpass G7 countries in terms of GDP, leading to improved living standards and increased business opportunities, while also addressing the need for sustainable development and strategic flexibility in these rapidly evolving markets.

RUNNING HEAD: Contemporary management issues
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Contemporary management issues

Contemporary management issues 1
Contents
Task 1.........................................................................................................................................1
Task 2.........................................................................................................................................5
References................................................................................................................................11

Contemporary management issues 2
Task 1
This report is going to present a long-term economic projection which is global economic
power will transfer gradually to E7 nations by 2050. The GDP is projected in 2050 for the E7
nations. It is anticipated that the world economy could be twice in dimensions by 2042 by
increasing at a yearly ordinary rate of 2.5%. The growth will be compelled mainly by the E7
economies, developing market, and the evolving countries. The E7 economies China, Brazil,
Indonesia, Mexico, India, Turkey, and Russia will be contributing to the economy by
mounting at a yearly rate of estimated 3.5% in the coming thirty four years.
As per Dhopte and Sinha, 2017, the long-term worldwide economic power is fixed to endure
concluded the period to 2050. The developing countries endure to increase the segment of
world GDP even in the extended run (Dhopte and Sinha, 2017). The world economy could be
more than double in the size by2050. It is going to undertake growth-friendly policies. The
developing markets will remain to be the growth device of the overall economy. The E7
countries will surge its portion of world GDP from 35% to nearly 50% by 2050. China is
anticipated to be the leading economy in the domain, reporting for 20% of GDP in 2050.
India and Indonesia are projected to take second and fourth place based on GDP at
purchasing power parity (PPP). Other developing markets will also take center stage as
Mexico could be greater than Germany and the UK by 2050 in the terms of PPP terms. It can
be assured that 6 out of 7 economies in the domain could be developing markets by 2050.
The progressive economies will endure to have advanced incomes, but developing economies
can make decent growth and close the gap by 2050. It will exposed abundant chances for the
trades planning to make enduring investment in these markets of the emerging countries
(Dhopte and Sinha, 2017). The government needs to contrivance structural reforms in order
to advance macroeconomic constancy expand the economy and advance effective political
and legal institutions to realize the growth potential of the emerging markets. The emerging
market economies will lead to the global economic growth which will progressively increase
the share of GDP over time. This growth will be initited by the developing market and
emerging countries with the E7 economies at a yearly rate of 3.5% in the coming 34 years.
The shift can be seen in international economic power from the reputable advanced countries
in Asia and E7 can possibly comprise 50% of world GDP by 2050. The change in the shares
of the world GDP from 2016 to 20150 is given below.

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According to Sun and Huang, 2014, China has surpassed the US and has converted to the
world’s major economy in PPP terms (Sun and Huang, 2014). China is estimated to overtake
the US in 2025 and grow around 130% of the size of the US economy by 2050. Whereas
India positions in 3rd place and is anticipated to surpass the US by 2040 in the terms of PPP.
India is anticipated to develop to nearby 90% of the size of the US economy by 2050.
Indonesia could growth to 4th place by 2050. It is predicted that six out of the seven markets
in the world could be developing markets in the terms of the PPP by 2050. The emerging
economies like Mexico and Indonesia are predicted to be greater than France and the UK
whereas Pakistan and Egypt can overtake Italy and Canada on the basis of PPP. India can be
the fastest economies in the terms of growth over the period of 2050. It will be growing
around 5% a year. The economies such as Brazil, Russia, Indonesia, Mexico, and Turkey are
predictable to develop almost 3-8% of the size of the US economy by 2050, though these
countries are expected to remain suggestively smaller than China and India due to less
population (Morgadinho, Oliveira and Martinho, 2015). The growth of the developing
countries will be sustained by the fast-growing inhabitants and enhancing domestic demand.
It will be accompanied by the investment in education and enhancement in the
macroeconomic essentials to make sure that here are enough professions for the increasing
figure of young people in these nations. Half of the E7 countries are still deliberated
emerging markets in the world. A continuous shift will be perceived in the emerging
economies. These economies account for around 50% of the globe’s GDP by 2050.
A robust long-term economic growth model is used to analyze the potential long-term growth
rates. It comprises the demographic trends, capital investment, and technological progress.
The analysis has been made to develop global strategies by tailoring the circumstances of the
individuals (Gupta, 2017). A toolkit has been developed by the growth markets to address
strategic issues. The emerging countries have robust potential growth than the advanced

Contemporary management issues 4
economies and continue to follow growth-friendly policies. The E7 countries have surpassed
the G7 countries in terms of total GDP. The G7 countries are current advanced economies
such as Canada, Germany, France, Italy, Japan, UK and US plus Australia, Spain and South
Korea. The G7 economies are about 80% greater than the E7 economics on the basis of GDP
at MERs. It is estimated that GDP of the E7 countries will be twofold great than for the G7
countries by 2050. The E7 nations have exceeded G7 nations in terms of total GDP. It is a
degree of the capacity of goods and services formed after modifying price level disparities
through countries. The G7 countries are still 80% greater than the E7 economies based on the
GDP at MERs. It reveals how much lesser average price levels in the developing economies
than the progressive economies at current market exchange rates. The GDP of the E7
countries will be almost two times great than the G7 countries by 2050 in the terms of PPP
and other than 50% advanced in MER terms. The graph given below represents the size of
G7 and E7 economies from 2014 to 2050.
As per Chidlow, Ghauri, Yeniyurt and Cavusgil, 2015, the emerging countries are generally
expected to grow faster. There is a considerably slower labor force evolution in China due to
the applicability of 1 child policy (Chidlow, Ghauri, Yeniyurt and Cavusgil, 2015). It is going
to result in the rapid aging of the population of China whereas the operational age population
of India is predictable by the UN to develop at a vigorous rate. The growth in China has been
initiated by the great savings and capital investment rates (Van Hoorn and Maseland, 2016).
Other emerging countries such as Brazil, Indonesia, Turkey, and Mexico are growing in
terms of the population. On the other hand, India potentially achieves the growth by
maintaining a macroeconomic and legal environment conducive to trade, investment, and

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growth. The progress has been positive in all of these merging countries. Russia expects
strong growth in GDP per capita but the declining population holds back the overall GDP
growth (Shaw, 2014).
The relative per capita income is estimated higher for the E7 countries. The E7 markets are
becoming more striking to the G7 companies. It will result in the rise of the regular income
per capita levels and procuring power. It is helpful in reducing poverty in the emerging
countries. The PPPs are focused to compare the living standards. The average livings
standards of India and Indonesia in 2050 will not be remote behind than South Korea has
currently in the terms of PPP. On the similar basis, Turkey, China, and Brazil might by 2050
with the French, UK or German economies today (Li and Bronitt, 2017). It has consequences
for the types of goods and services which will be demanded by the consumers in the
emerging economies (Kolk and Rivera-Santos, 2018).
The emerging economies face a lot of challenges in achieving sustainable long-term growth.
The structural developments such as climate change and aging populations entail frontward
thinking policy which prepares the workforce to make collective assistances and promote
sustainable development. It is projected that the emerging economies will create many breaks
for the business. The economies will develop into innovative industries and will involve with
global markets. The population will also be younger on average than in the progressive
countries. The emerging economies are going to be further eye-catching places to conduct
business, attract investment and talent (Cumming and Zahra, 2016). It is because these
economies improve their institutions raising social constancy and firming macroeconomic
fundamentals. The emerging economies are briskly developing and regularly comparatively
unstable so the companies require dynamic and flexible strategies to succeed. These
companies will also necessitate functional strategies to have the accurate mix of tractability in
order to prosper. The businesses also requisite to be persistent to get rid of short-range
economic and political rainstorms. The industries are required to amend their brand and
market situations in order to ensemble contradictory and nuanced local preferences. An
indulgent of the local market involves working with the native markets (Shaw, 2018).
The high-tech progress imitates the potential of the countries to clasp physical and capital
investment. The other official factors have also equally role behind this such as political
stability, openness to trade and foreign investment (Cravino and Levchenko, 2017). There is a
sluggish rate of technical advancement in the case of the countries like India, Brazil, and

Contemporary management issues 6
Indonesia. But these nations quicken in the long run as these reinforce the official context.
The catch-up rate is expected to meet to a yearly rate of 1.5% of the total efficiency gap with
the US. This approach is assumed to yield forecasts for the long-term trend development. It
overlooks the recurrent variations about the long-term growth which can be considerable for
the developing economies in the short term. It is also proficient of overlooking major adverse
tremors possibly. The modeling overlooks the opportunity of an impulsive rise in the
technological edge due to the innovation of existing technologies (Tran, 2018).
GDP in terms of PPP is continually an improved display of the usual living standards. It
modifies the price variances through countries at various intensities of the development. It is
generally observed that price levels are considerably worse in the developing economies. The
GDP constricts the revenue gap with the progressive economies. Though, GDP at MERs is an
improved portion of the comparative scope of the markets from the business standpoint in the
short term. It is a crucial aspect, in the long run, to determine arcade exchange rates in the
developing economies towards the PPP rates (Brannen, Piekkari and Tietze, 2017). It occurs
either through the advanced national price increase in the developing economies or through
the insignificant exchange rate appreciation. A similar methodology is approved in
approximating GDP at market exchange rates in 2050. “World in 2050” report, the market
exchange rates will be assembling to PPP rate with diverse congregating rates reliant on the
economy. It pointers to the considerable increase in the actual market exchange rates for the
developing economies due to the advanced efficiency growth rates (Liu, Zhang, Wang, Liu
and Tan, 2016). However, the projected MERs can fall beneath the PPP levels in 2050 in the
case of slightest developed developing economies.
Task 2
This report is going to assess the compressions of social change influence upon the business
processes of the Walmart. The effectiveness of the current response of the company is
assessed. Walmart is the largest company worldwide in the terms of revenue. As per the
Fortune Global 500 list, the net worth of the company is approximately $485 billion. The
company needs to look for the new and innovative ways to keep store network ahead of the
curve. There is the pressure of social change impact on the operations of the Walmart. The
social change is characterized by the cultural symbols, behavior and value systems. The ideas
of social change persist as an underlying principle for the company. Walmart needs to be
attentive to the changes happening in the society (Ailawadi, Ma and Grewal, 2018). The

Contemporary management issues 7
pressure of the social change results in better social performance. It scrutinizes the political
and social environment in which the company operates. Walmart boarded an approach to
enhance its reputation and advance its impact on the workers, society and the environment. It
also responded to critics by adopting progressive employees, society and environmental
practices. The social performance boosts the corporate social performance. The company also
took the initiative to cut energy consumption and eco-responsibility among the suppliers. The
roadmap of the Walmart comprises the sustainability agenda of the company and new
commitments to reveal the wider reflection of the Walmart’s influence on the society and
planet. Walmart is enhancing sustainable sourcing and a new strategy to attain science-based
objectives to reduce greenhouse gas discharges (Plambeck, 2012). It is the 1st trader having
emanations reductions plan permitted by the science-based targets initiatives. Under this plan,
the company will use an arrangement of energy efficiency methods to cause half of the
energy requirements from the renewable bases. Such efforts are made to attain 18%
emissions lessening in the operations by 2025. The company is also going to work with the
dealers to condense releases by 2030. Walmart conducts programs to trains U.S associates
and enables them with the skills required to change from entry-level sites to occupations with
more accountability and advanced pays. It also promotes the ethical conscription and action
of labours in the wholesale supply chain (Osmonbekov, Gregory, Chelariu, and Johnston,
2016). The company takes such initiatives to become the most trusted retailer worldwide. It
aims to build transparency and take actions in order to create trust. The roadmap of the
company guides 3 ecological sustainability goals fixed in 2005: to generate nil wastage from
the processes, run with 100% renewable energy and wholesale products which can endure
ordinary possessions and the environment (Varadarajan and Kaul, 2018). The company
participates on the vital issues and the progress towards it. The roadmap also builds on the
progress up to date and widens the company’s vision and its part in the society.
The company has expanded its traditional brick and mortar store to online voice shopping.
The company is making use of advanced technology to keep up with the innovators like
Amazon and other retailers. In 2016, the company invented a giant mobile payment system
known as Walmart Pay smartphone app to make shopping experience faster and easier. The
company has transformed the shopping experience by making use of the technology.
Walmart Pay is the latest example of such technology (Pope and Pope, 2015). It was used for
45% of payments whereas 88% of the transactions came from the repeated users. As the
popularity of the Walmart Pay slowly increases, the company is observing for several ways to

Contemporary management issues 8
leverage digital technology to authorise store and employees to provide 1st class service to the
customers. The decision making tools given below addresses the contemporary drivers for
change:
Scan and go: The scan and go is the common technology used by the retailers around the
world. The society also responded positively as the consumers liked having the choice of
speeding up shopping by proving out the goods themselves (Michelson, 2013). It also
allowed customers to scan their items as they take from the shelves. It is not suitable for the
high volume shopping trips. It is ideal for the consumers who are likely to do less monthly or
weekly grocery shopping. The company has introduced the ability for the customers to use
smartphones for this purpose. The scan and go process allows customers to avoid the
traditional check out process and makes a quick trip (Vandegrift and Loyer, 2015).
Smart Life: This revolution is made to manage in-store demonstrations. The smart life allows
the company to assist customers with technology related queries. It is basically a large tablet
computer assembled into a countertop. The employees can determine any number of digital
products from computers and smartphones by making use of smart life technology. The
activists can pick the device which is interested in the customers and the Smart life becomes
that piece of technology (Schramm-Klein, Morschett, and Swoboda, 2015). The customers
can see how the device works. This device does not involve the risk of damaging traditional
demo models. The encounters of the smart life are constantly updated with new releases and
software so that customers can get an accurate view of the technology offered by the
Walmart.
Endless Aisles: The endless aisle system aims to incorporate them in-store and online
shopping experiences. A booth is placed at the end of a physical aisle which enables
customers to access the online store of the company. If a customer visits the store for the
specific product and finds out that the store does not have this product, then it can order the
item at the booth. The store delivers the product at the home of the customers. It realizes to
customers that they trip was useful and prevents from going somewhere else. The company
also uses the next-gen kiosk to take orders for the meats and cheeses at the deli counter more
suitable.
Call buttons: Walmart is also using technology to change the system customers ask for help.
The next-gen call button activates GPS enabled devices which are worn by the staff
members. The employees who are properly trained are only called the department when the

Contemporary management issues 9
button is pressed. This technology prevents customers to wander around the store and look
for the staff members. The customer has to simply press the button and wait for the person
comes to help them (Rothenberg, Hull and Tang, 2017).
Inventory optimization: Walmart has opened fulfillment centers for the next generation. The
company will link its several types of DCs and stores in order to advance the precision and
proficiency of the inventory. It is a huge system to assist customers in an improved way by
optimizing the inventory. It takes a lot of costs not only for the transportation but also for the
markdown elimination (Vaughan, et. al. 20170. A dynamic connected supply chain can serve
customers and reduce costs by the unification of the truckload and pallet. It is because of the
improved forecasting leveraging predictive analytics. The company also intends to use
another technology called OneOps. It permits Walmart to practise multiple clouds and
interchange applications among those multiple clouds. This technology has made inventors of
the company more creative and deploys product enhancements faster.
Walmart is constantly looking to use new technologies in order to improve the in-store
experience for the customers. It is critical to meet the needs of the customers as they are more
attracted towards digitally driven lifestyles. The company can rethink and test the new ideas
in the stores to improve the experience of the customers. The speculative grounds to upkeep
the application of the corporate responses to modern management issues are:
Power partial of the Walmart’s energy from renewable bases under a plan intended to attain
science-based releases targets: Walmart is individual of the leading remote sector
stakeholders in renewable energy comprising solar and breeze power. 25 % of the company’s
processes were driven by the renewable energy in 2015. It was the substantial goal towards
the 2005 goal of the Walmart. Further, the company will also cause 50% of its energy from
the renewable energy by 2025 as portion of a plan intended to attain science-based marks so
that greenhouse discharges can be reduced (Turri, Smith and Kopp, 2017). Walmart is the
leading trader with a releases lessening plan permitted by the science-based objectives
inventiveness. Under this plan, the company is going to use an arrangement of energy
efficiency methods with the prolonged use of the renewable energy in order to decrease
discharges in its procedures by 18% by 2025. The company is also going to work with the
contractors in order to decrease emissions by one gigaton. It is corresponding to captivating
over 211 million passengers off of the streets and freeways for one year.

Contemporary management issues 10
Attain zero excess to landfill in main markets by 2025: The evolution of the Walmart has
been substantial for the unique aim. The company was successful in diverting waste from the
landfills in 2015 (Elder and Dauvergne, 2015). It helped to decrease the costs of the
corporate, clients and the society. Walmart will attain zero left-over to landfill from the
processes in the key markets comprising Japan, U.K. U.S, and Canada by 2025. The pledge
was intended to encounter EPA zero waste recommendations (Gregson and Ruppel, 2017).
The company is going to work constantly to diminish landfill waste in the markets as a best
practice.
Sell more of sustainable products though preserving the low prices consumers anticipate:
 Packaging: The company initiates to effort with the dealers in order to decrease
product and wrapping leftover and domain natural properties. The aim of the
company by 2025 is remote brand wrapping to be 100% biodegradable.
 Reasonable, harmless and improved: Walmart plans to twofold deals of the nearby
developed produce in the U.S by 2025. The company also intends to effort with the
suppliers and isolated brand products to eliminate artificial colors and simulated
flavor from the products. The company also expects to diminish sodium, added sugar
and drenched fat wherever probable (Taylor, 2018). Walmart will develop and
improve maintainable obtaining to cover 21 main commodities comprising bananas,
grapes, coffee, and tea.
 Ordinary resources: The company is intensifying tracking of merchandises made with
zero net deforestation. Walmart has been working with the government, industry, and
NGOs to source sequestered brand palm oil and beef from Amazon. The company
will magnify work into the added serious commodities comprising soy, pulp, and
paper.
Walmart is going to work to attain the subsequent aspects:
Sustenance the human pride of labours in the trade supply chain: Walmart will join the
leadership assemblage for accountable enrolment and teamwork of the business to
safeguard ethical enrolment and conduct of the workers globally. The work of the
company presents a risk in the 4 areas which present a risk to the dignity and the security
of the workforces such as seafood, attire, electronics and produce.

Contemporary management issues 11
Be the first place for the person’s job: The company will make its exertions to manage
good practice for the thousands of the individuals who come for the major job. The
acquaintances are delivered with workplace flexibility which is a decent start, new
assistances and a vibrant path towards growth and success (Elder and Dauvergne, 2015).
Advance the lives of the people in the groups: Walmart is going to cause additional
products nearby round the globe comprising $250 billion in products assistant jobs in
America by 2023. The company has also dedicated to contributing 4 billion foods to fight
hunger by 2020. It is also going to subsidise $25 million to the tragedy reprieve and
resiliency around the globe (Galliers and Ballantine, 2017).
Walmart tackles the pressure of social change impact upon the operations by helping
people around the globe by saving money and living better through stores, online and
mobile devices. The company endures to be a forerunner in sustainability, commercial
charity, and occupation prospect.