The document discusses several global organizations and factors that influence global business and economic dynamics: 1) The OECD is an international forum of 34 democratic countries that works to stimulate economic progress and trade between member nations. 2) The World Economic Forum convenes annual meetings in Davos to discuss economic issues with political and business leaders and promote public-private partnerships. 3) The G8 is an informal forum for discussion among the world's major industrialized democracies, but has no permanent structure. 4) Factors like political stability, economic conditions, social norms, and technology infrastructure in different countries are important for multinational companies to consider in their global business strategies.

1. Global Dynamics
OECD
WEF
Group of 8

2. OECD
• The Organisation for Economic Co-operation and
Development (OECD), is an
international economic organisation of 34 countries ( India is
not a member) founded in 1961 to stimulate economic
progress and world trade.
• It is a forum of countries committed to democracy and the
market economy, providing a platform to compare policy
experiences, seek answers to common problems, identify
good practices, and co-ordinate domestic and international
policies of its members
• It consisted of the European founder countries of the OEEC
plus the United States and Canada, with Japan joining three
years later

3. OECD
• The official founding members are the Republic of Austria,
the Kingdom of Belgium, the Dominion of Canada, the
Kingdom of Denmark, the French Republic, the Federal
Republic of Germany, the Kingdom of Greece, the Republic
of Iceland, the Republic of Ireland, the Italian Republic, the
Grand Duchy of Luxembourg, the Kingdom of the
Netherlands, the Kingdom of Norway, the Portuguese
Republic, Spain, the Kingdom of Sweden, the Swiss
Confederation, the Turkish Republic, the United Kingdom of
Great Britain and Northern Ireland, and the United States of
America
• OECD progressively created agencies:
OECD Development Centre (1961), International Energy
Agency (IEA, 1974), and Financial Action Task Force on
Money Laundering.

4. OECD
• OECD promotes policies designed to:
 Achieve the highest sustainable economic growth and
employment and a rising standard of living in Member
countries, while maintaining financial stability, and thus to
contribute to the development of the world economy;
 Contribute to sound economic expansion in Member as well
as nonmember countries in the process of economic
development; and
 Contribute to the expansion of world trade on a multilateral,
nondiscriminatory basis in accordance with international
obligations.
1) It acts by peer pressure to improve policy and implement
"soft law"—non-binding instruments that can occasionally
lead to binding treaties.

5. World Economic Forum (WEF)
• Founded in 1971 as non-profit organisation in Switzerland
• Region served by WEF covers worldwide
• Best known for annual meeting at Davos, bringing together top
political leaders, businessman, selected journalists to discuss
pressing economic issues including health and environment
• WEF Organises series of meetings at regional level too
• Political leaders use Davos, being a neutral platform to resolve
their differences
• In 2008, Bill gates delivered lecture on creative capitalism that
work to generate profits and solve world’s inequities
• 2005 summit was utilised to bring in reduction of green gas
emissions
• 2004 summit saw the launch of Partnering against corruption
Initiative

6. WEF contd…
• Global climate changes and AIDS in Africa features heavily
in every summit
• Though at times, WEF is criticised for moving away from
critical economic issues
• WEF has opened regional office in New York and Beijing
• WEF is official observer of United nations Economic and
Social Council and is under supervision of Swiss Govt.
• Initiatives taken by WEF include:
– Global health Initiatives (GHI) on PPP basis
– Global education Initiative (GEI) for IT education
– Water conservation Initiative on PPP basis for RSA & India
– Partnering against Corruption (PACI)

7. WEF contd…
• WEF also give away recognition awards
• Technology pioneers programme for designing and or
developing new technology , instituted since 2003
• Refugee run award: it’s given to charity organisation for
helping the refugees
• WEF is also criticised for:
• Why programmes are held only in Davos?
• Meetings are mix of “pomp and platitude”
• Instead of discussing problems with knowledgeable
experts, it is discussed at political level

8. Group of 8 ( or G – 8)
• It is a concept of a forum for world’s major industrialised
economy following 1973 oil crisis
• G8 does not have a permanent office or a proper
administrative structure
• It elects a president by turn, every year
• It was formally created with 6 members in 1975. Canada
and Russia joined later to make it Group of 8
• The countries are: Canada / France / Germany / Italy /
Japan / Russia / UK / USA. The invitees are EU and
EEC president
• Presidency holder sets the agenda and hosts the summit
for the year

9. G-8
• Recently UK and France indicated to include the five
developing countries who have been participating in the
meeting so far as guests
• These five countries are: Brasil / China / India / Mexico /
RSA
• In 2007, G 8 agreed to explore means to promote energy
efficiency at global level.
• In 2008, G8 along with India, China, South Korea and EU
commission established partnership for energy efficiency
cooperation
• In 2008, all G8 countries agreed on action plan for climate
change to enhance engagement of private and public Fis.

10. G- 8
• Some facts of G 8 member country
– All countries are amongst top 15 leading export
countries with few of them having largest gold reserve
– The G8 countries represent 7 of the 9 largest
economies by nominal GDP
– Seven of the nine largest nuclear power producers and
7 largest donors to UN budget are in the G8
– All G8 countries are in top 20 nations ranked by the
amount of voting power in IMF
– Majority of global military power rest within G8members
– Four of the G8 members account for 98% of world’s
nuclear weapons

11. G -33
• The G 33 is a group of developing countries that
coordinate on trade and economic issues
• It was created in order to help a group of countries that
were all facing similar problems
• Despite the name, there are 44 member countries that
include India, Pakistan, Sri Lanka, Indonesia, Kenya
• G 33 Activities:
• Global warming, a result of CO2 emission is jeopardizing
the future of planet.
• Some of the effects of global warming are:

12. G -33
(i)Rapid glacier melt down, reduction in snow caps at
poles, rising sea levels are few examples
(ii)Changing pattern of monsoon, cyclones and typhoons
of unprecedented velocity are resulting in destruction of
agricultural patterns
• Capital needed for sustainable development is nowhere in
sight
• Eco friendly / energy saving technologies and know how is
absent
• Expertise / capacity to protect or promote national
interests is weak

13. Global factors influencing business strategy
Key Strategic decisions relate to:
– Access to international markets ( spotting a new market
or building exports)
– The extent to which business will be competitive in
international market
– The effect of decision making of the existence of trade
blocks
– Consideration on the necessity and importance of
acquisitions
– Trade Blocks: this influence the ease of access to new
markets and affect relative costs of trading

14. Factors for decision
• Key factors influencing global business strategy can be
summarized under PEST or SLEPT heading
• Under PEST heading, :
P = Political S = Social
E = Economic T = Technological
• Under SLEPT heading, :
S = Social L = Legal
E = Economic P = Political
T = Technological

15. How PEST interconnects
PEST
Social and
Political and
Cultural
Legal Factor
factors
Economic Technological
factors and factors and
Currency Infrastructure

16. How SLEPT interconnects
SLEPT
Legal and
Political
Regulatory
Technological
Economic
Social and and
Cultural Currency

17. PEST / SLEPT
Political
• Political change through coup violence etc. may change
the government and thereby future business strategy
• Political uncertainty ( Zimbabwe, Sudan, Venezuela) can
lead to a fall in investment decision or business venture
• Political doctrine can affect the ease with which business is
conducted
• Legal
• Legal system, its efficiency and costs related with legal
systems
• Regulatory or open to foreign investment
• Tax repatriation
• Cap on investment

18. PEST / SLEPT
Economic:
• The factors to be considered are
• Tax system
• Investment considerations and allowances
• Sophistication of financial markets
• Commodity prices – oil, energy, metals
• Monitory and fiscal policies – interest rates, tax regime,
government aid
• Internal bureaucracy
• Exchange rates

19. PEST / SLEPT
Social;
• Religious consideration
• Impact on local communities
• Impact on environment
• Ethical considerations
Technological:
• Access to bandwidth
• PC ownership
• Compatibility of technology in business management

20. Country Rating & Investor’s confidence

21. Sovereign rating of Country