Presented by Bajrang lal Sharma TREND What is
Presented by Bajrang lal Sharma
TREND • What is trend? • Historical change in trend? • Importance of trend? • Trend analysis? • Moving stage from home business to international business of trend?
WHAT IS TREND? • A general direction of change : a way of behaving, proceeding, etc. , that is developing and becoming more common. • Something that is currently popular or fashionable. • A line of general direction or movement (the trend of the coast turned toward the west) • A prevailing tendency or inclination – Drift (current trends in education)
WHAT IS TREND CONTINUE…. • A general movement : Swing (the trend toward suburban living) : • A current style or preference : Vogue (new fashion trends) • A line of development : Approach (new trends in cancer research) • The general movement over time of a statistically detectable change; also : a statistical curve reflecting such a change
HISTORICAL CHANGE IN TREND • International trade has a rich history starting with barter system being replaced by Mercantilism in the 16 th and 17 th Centuries. The 18 th Century saw the shift towards liberalism. • It was in this period that Adam Smith, the father of Economics wrote the famous book ‘The Wealth of Nations’ in 1776 where in he defined the importance of specialization in production and brought International trade under the said scope. David Ricardo developed the Comparative advantage principle, which stands true even today. • countries have entered into several pacts to move towards free trade where the countries do not impose tariffs in terms of import duties and allow trading of goods and services to go on freely.
HISTORICAL CHANGE IN TREND CONTINUE…. • The 19 th century beginning saw the move towards professionalism, which petered down by end of the century. • The First World War changed the entire course of the world trade and countries built walls around themselves with wartime controls • Slowly the countries began to grow familiar to the fact that the old school of thoughts were no longer going to be practical and that they had to keep reviewing their international trade policies on continuous basis and this interns lead to all countries agreeing to be guided by the international organizations and trade agreements in terms of international trade. • Today the understanding of international trade and the factors influencing global trade is much better understood.
TREND? • The importance of looking forward • Be aware of key trends • Make your own trend map • Listen to the facts you don’t want to hear • The productivity imperative • The global grid • Pricing the planet • The market state
• Trend analysis? • A trend in marketing & in fashion • Definition of Business Trends • Financial Trends, Market Trends & Industry Trends • Stages of trend analysis • Analysing trends to improve business • 10 Tips to Improve Business Efficiency
TREND ANALYSIS? • Trend analysis is the practice of collecting information and attempting to spot a pattern, or trend, in the information. In some fields of study, the term "trend analysis" has more formally defined meanings. • A trend analysis is a method of analysis that allows traders to predict what will happen with a stock in the future. Trend analysis is based on historical data about the stock's performance given the overall trends of the market and particular indicators within the market.
A TREND IN MARKETING & IN FASHION • What is a trend in marketing? • A market trend is a tendency of a financial market to move in a particular direction over time. These trends are classified as secular for long time frames, primary for medium time frames, and secondary for short time frames. • What is a trend in fashion? • A trend is what's hip or popular at a certain point in time. While a trend usually refers to a certain style in fashion or entertainment, there could be a trend toward warmer temperatures (if people are following trends associated with global warming).
DEFINITION OF BUSINESS TRENDS From a technical perspective, trends involve looking at the statistical analysis of historical data over a selected time frame and charting the progression. If the data suggests consistent increases, decreases or even constancy or flatness, there exists a trend. Businesses of all sizes use this kind of data to help predict the future or help shape strategic decisions. Trends involve tracking historical data to help predict the future.
FINANCIAL TRENDS, MARKET TRENDS & INDUSTRY TRENDS • Financial Trends • The trends businesses are usually most concerned with are those related to their finances. Measuring increases and decreases in revenues, expenses, margins and profits are the lifeblood of businesses. Examining a company's financial trend can help owners, managers and investors become aware of the company's situation and needs as it plans for the future.
MARKET TRENDS • Market Trends • Often the term "business trend" is synonymous with trends of financial markets such as the New York Stock Exchange or the NASDAQ. These trends may also relate to the performance of market indicators such as the Dow Jones Industrial Average or the Standard and Poor's 500 indices. Everyday, detailed statistical information is available on all of these, and their historical data is analysed for trends that impact business. While small businesses are unlikely to be directly affected by stock prices, their ability to garner investment capital or loans may be impacted as financiers, lenders and potential investors are bolstered or hampered by market conditions. Likewise, if other companies in a particular market sector are performing better or worse, it may be an indicator of how a private business in the same field may fare.
INDUSTRY TRENDS • Industry Trends • From a less scientific perspective, trends can represent the direction an industry or line of business is taking. In this sense, a trend might be accountants saving money by moving to paperless billing, dentists using electronic diagnostic instruments, or an increase in the number of frozen yogurt shops opening in a particular city. These trends have factual basis but are macro level and related to the business environment as a whole. In some cases, it may something about whether a small business is likely to succeed, such as growing support of the slow-food movement boosting local restaurant business or, alternatively, large pet super marts outpacing local pet stores.
STAGES OF TREND ANALYSIS • Set up an effective trend analysis system by: • preparing for analysis - determine what performance data or results you are going to examine and compare • applying a threshold - define the level at which a variation is worth noting. For example, a 10% increase or decrease in sales over a period of time should be investigated for causes. Use your discretion as you know your business best • conducting cause analysis - investigate why the variation occurred so you can use this information for future planning and decision making.
LIMITATIONS OF TREND ANALYSIS • if conditions change dramatically, historical data may not apply • comparing data on an annual basis may not always accurately represent business performance, since other factors may influence results • data collected over an extended period of time does not allow adjustments for inflation.
ANALYSING TRENDS TO IMPROVE BUSINESS • Spending time analysing your business results is valuable if the insights help you to improve your business. • Genuine trend analysis will help reveal trends in your business's performance that aren't necessarily obvious from day-to-day performance figures. • You can analyse your business performance for trends by: • • doing financial calculations • • looking at ratios • • creating tables of information • • graphing results over time.
STAFF TURNOVER IN 2011 In isolation, the information indicates a positive result. When compared to the graph, turnover per quarter is significantly greater than in previous years. There is an upward trend in staff turnover. This gives you a warning that staff turnover is becoming a problem and you may need to take steps to alter the trend.
10 MOST IMPORTANT TRENDS IN BUSINESS • The emergence of a new type of business ecosystem, • New ways to scale businesses, • The emergence of a different type of leader and leader values, • The rise of the global middle class, • The new global division of labour, • The ‘universal connector‘ or mechanisms through which business can be conducted anonymously at huge scale, • The business platform, cloud infrastructure, • The externalising of talent and in particular • The rise of the bottom of the pyramid as a source of innovation
10 TIPS TO IMPROVE BUSINESS EFFICIENCY • 1. Automate whatever tasks you can • 2. Encourage your employees to chat face-to-face • 3. Limit interruptions • 4. Hold a daily, 10 -minute company meeting 5. “Single-task” to get more done • 6. Discourage “Got a minute? ” meetings • 7. Stick with the established process • 8. Use a task management software • 9. Promote a culture of open communication • 10. Know when to stop
K N A TH U O Y
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