Assignment 6A: Identifying Opportunities in Economic & Regulatory Trends

Economic Trends Opportunities

1.   Aerospace and defense

a.    https://www.vistage.com/research-center/business-financials/economic-trends/20191209-economic-trends-impacting-business-in-2020-and-beyond/

b.    An opportunity might exist with Aerospace and defense because the global defense spending budget will increase by 3% in 2020. This increase in spending by the government would open some space for companies and entrepreneurs to help the national defense sector involving jets and other aircraft. National defense is pertinent to maintaining our way of life, so this opportunity is big to keep up our national dominance.

c.    I think that the most likely customers with this opportunity would be the department of defense organizations, homeland security, private domestic investors, foreign investors, travel organizations, and a variety of space programs.

d.    I believe that this opportunity would be moderately difficult to exploit because defense companies and avionic companies are backlogged with products. However, this opportunity can still be taken advantage of by the right people to help our country advance and protect ourselves.

Why did you see the opportunity: I formed the belief that this opportunity exists because of my experiences and work history. Being a part of the military family, I know that aerospace and defense is important to everyone in the U.S. being able to live the life they want to. Additionally, my emotions towards my country are strong and I love my life with all the freedoms it comes with. I wouldn’t want to jeopardize that, so this opportunity is important to our country.

2.   Oil and Gas Prices

a.    https://www.thebalance.com/us-economic-outlook-3305669#climate-change

b.    This information suggests that an opportunity may exist because the U.S. Energy Information Administration (EIA) suggests that oil prices through 2050 will be rising. With rising prices for oil that will help other sectors thrive, companies or people can come up with new ideas that will replace oil. These new ideas will be more listened to help companies cut down on costs. Companies and individuals will change behaviors to help the economy and planet out.

c.    The most likely customers are transportation industries, people involved in renewable resources, anyone that owns a vehicle that consumes oil/gas, engineers, researchers, and car dealerships.

d.    This opportunity is relatively harder than others to exploit because you need to have specialized knowledge of this subject to take advantage of the opportunity. With this occurring more scientists, engineers and researchers could be useful for the entrepreneurs and companies to combat the higher prices.

Why did you see the opportunity: I formed a belief that an opportunity existed because I have an attitude that we all have an obligation towards the existence of future generations. If the world’s oil and gas prices are high, then that means those non-renewable resources are almost used up. We should conserve the rest for future generations and care more about the world to ensure it is in a great place for our kids and grandkids.

Regulatory Changes Opportunities

1.   Healthcare

a.    https://www.pwc.com/us/en/library/risk-regulatory/strategic-policy/top-policy-trends/healthcare.html

b.    This opportunity may exist based on the information which stated that driving down the costs of care for consumers will be waged in policies in 2020. This suggests that companies that can offer healthcare at cheaper prices by cutting costs legally will be able to make more money than others. Also, a big portion (62%) of business respondents said healthcare is one of the top 3 policies important to their business.

c.    The most likely customers will be all Americans that have healthcare in any way, anyone that buys prescription drugs, health industries, employers that offer healthcare, pharmaceutical companies, and medical device companies.

d.    I would think that it would be somewhat difficult to exploit this opportunity because the companies that offer healthcare would have to cut costs legally somewhere. Additionally, you would have to be specializing in the healthcare field to have to know specific knowledge of materials. Also, they would have to get clearance from the Food and drug administration so the companies can distribute the products.

Why did you see the opportunity: I formed a belief that an opportunity exists because I have a desire that everyone should have affordable healthcare and can afford products that can maintain your well-being. Also, I believe that everyone should have a chance to be healthy and with affordable healthcare and drugs that are possible.

2.   Trade Policy

a.    https://www.pwc.com/us/en/library/risk-regulatory/strategic-policy/top-policy-trends/trade.html

b.    There is an opportunity that exists in our trade policy because there are two shifts in 2020. The shifts are shifting supply chain strategies and the rising discipline to gather data about cross border activities. These two shifts offer an opportunity that can help make markets easier to trade in for companies and help companies diversify their trade portfolio. This opportunity will help companies cut down on certain costs too.

c.    The most likely customers are data analysis companies, countries all over the world, large multinational companies, technology companies, investors and anyone in the stock market since companies will be more profitable.

d.    The opportunity is relatively easy to exploit because companies and governments can start to trust trade partners. They will be able to cut the cost of goods and find their trade preferences easier with data analysis. Trade and investment will be easier to negotiate, and companies will be able to drop some rates like corporate taxes.

Why did you see the opportunity:  I have a belief that an opportunity exists because of previous experiences in the other classes that I have taken in college. For example, in both my economics classes, I learned that trade policies are super important to the domestic and global economy. Also, a desire for better relations with our partners that we currently have will help stimulate both countries' economies and make us both better off in the long run.