Economic Function of Government - Presentation Transcript: Business-To-Government (B2G) Is A Derivative of
Economic Function of Government - Presentation Transcript: Business-To-Government (B2G) Is A Derivative of
market definition of "public sector marketing" which encompasses marketing products and
services to various government levels - including federal, state and local - through integrated
marketing communications techniques such as strategic public relations, branding, marcom,
advertising, and web-based communications.
B2G networks provide a platform for businesses to bid on government opportunities which are
presented as solicitations in the form of RFPs in a reverse auction fashion. Public sector
organizations (PSO's) post tenders in the form of RFP's, RFI's, RFQ's, Sources Sought, etc. and
suppliers respond to them.
The advantages and disadvantages of economic growth are fiercely debated by economists, environmentalists and other
commentators. In this note we consider some of the economic and social costs and benefits from expanding levels of
production and consumption. In particular we focus on the idea of sustainable growth.
According to the UK government, ‘a healthy economy leads to higher living standards and greater prosperity for
individuals. It also helps businesses to be profitable, which generates employment and income’. This quote highlights
some of the benefits of growth – developed further below:
Improvements in living standards: Growth is an important avenue through which better living standards and lower rates of
poverty can be achieved. This is particularly true for countries who regard growth as a key route for poverty reduction
among their population. According to a report published in August 2004 by the Asian Development Bank (ADB), rapid
growth in many of the countries in the Asian region has reduced the number of people living on less than $1 a day fell to
22% of the region's population in 2002. That compares with 34% in 1990 and shows "considerable progress in the fight
against poverty."
Rising Employment: Growth stimulates higher employment. As we can see from the chart below, the sustained growth in
the British economy since 1993 has helped to bring about a large rise in total employment, the number of people in work
has risen from 2.53 million at the start of 1993 to nearly 29 million thirteen years later. This is a very impressive
employment creation record, much better than most other countries in the European Union.
The accelerator effect of growth on capital investment: Rising AD and output encourages investment in capital machinery
– this helps to sustain growth by increasing LRAS.
Greater business confidence: Growth has a positive impact on company profits & business confidence – good news for the
stock market and for the growth of small and large businesses.
The “fiscal dividend” to the government: Government finances are cyclical in nature because a growing economy boosts
the tax revenues flowing into the Treasury and it also provides the government with more money to finance spending
projects.
Potential environmental benefits – richer countries have more resources available to invest in cleaner technologies. And,
as nations move to later stages of development, energy intensity levels start to fall. Much depends on how many
resources an economy is willing to devote to environmental improvement and protection. Over the last thirty years, the
ratio of energy consumption per unit of GDP has fallen quite significantly. The reduction in energy intensity is a
reflection of improvements in production technologies and also a gradual switch towards a low carbon economy. Much
more progress needs to be made. Organisations such as the Carbon Trust sponsor research into low carbon technologies
and many environmental groups believe that greater investment should be made in alternative sources of energy.
“We now expect to live on average 30 years longer, to work almost half the amount of time we used to every year, and to
enjoy an array of new goods and services, including air travel, antibiotics, computers and televisions. Economic growth
and rising living standards has also meant a cut in rates of carbon emissions and natural resource depletion never possible
in the 20th century”
Source: Professor Nick Crafts, 2002 Royal Economic Society Public Lecture, December 2002
Economic growth does not come risk-free. Although our material progress can be measured in part by the growth of
national output, income and spending, if the economy grows too quickly, it can bring about short and long-term
problems.
Inflation risks: There is the danger of demand-pull and cost-push inflation if demand grows faster than long run
productive potential High and rising inflation can be destabilizing for an economy because it puts pressure on interest
rates to rise and can cause a loss of competitiveness for domestic businesses in international markets
The environment: Economic growth cannot be separated from its environmental impact. Fast growth of production and
consumption can create negative externalities such as increased noise and air pollution and road congestion.
Environmental damage can have a negative effect on our quality of life and limits our sustainable rate of growth. For
example, road transport is responsible for 25% of UK CO2 emissions once emissions from fuel processing and vehicle
manufacturing are taken into account.
Inequalities of income and wealth: Not all of the benefits of growth are evenly distributed. We can see a rise in real
GDP but also growing income and wealth inequality in society which is reflected in an increase in relative poverty. The
Gini coefficient is one way to measure the inequalities in the distribution of income and wealth in different countries.
The higher the value for the Gini co-efficient (the maximum value is 1), then greater the inequality. Countries such as
Japan, Denmark and Sweden typically have very low values for the Gini coefficients; whereas African and South American
countries have an enormous gulf between the incomes of the richest and the poorest elements of the population.
Regional disparities: Although average living standards may be rising, the gap between rich and poor can widen leading
to an increase in relative poverty and a widening of the gap between different regions.
Many of the world’s most valuable finite resources are being extracted at such a rapid rate that it questions the long-
term sustainability of growth. Renewable resources are also being depleted because of over-consumption. Examples
include the destruction of rain forests, the over-exploitation of fish stocks and loss of natural habitat created through the
construction of new roads, hotels, retail malls and industrial estates. Some of the main environmental threats include:
The depletion of global resource base and the impact of global warming. There are plenty of examples around
of the “tragedy of the commons”, the permanent loss of what should be renewable resources that result from
over-extraction of some of our environmental resources.
A huge expansion of waste and pollution of the environment
Over-population (particularly in urban areas) putting pressure on scarce land and other resources
Species extinction leading to a loss of bio-diversity
Pollution problems have grown along with China's economy. Rising sulphur dioxide emissions in China are causing
environmental harm and economic loss according to a new report from the Chinese government. China is already the
world's largest sulphur dioxide polluter, emitting nearly 26m tons of the gas in 2005. This was a 27% increase since 2000
and coincided with a rise in coal consumption. The gas contributes to acid rain, which damages buildings, soil and crops,
and can cause health problems in humans. Much of the pollution came from burning coal. Coal accounts for 70% of China's
energy consumption. There is mounting concern over the environmental impact of China's rapidly expanding economy. In
July, China announced it planned to spend 1.4 trillion Yuan ($175bn) over the next five years to improve water quality,
and cut air and land pollution and soil erosion. In July 2006, the US Environmental Protection Agency estimated that on
certain days nearly 25% of pollution in the skies above Los Angeles could be traced to China.
Adapted from news reports, August 2006
National income accounts have not, until recently, made any adjustment for the environmental impact of economic
growth. Critics argue that because of this omission, the statistics misrepresent improvements in social welfare. For
example, no allowance is made for environmental depletion or money spent on correcting environmental damage that
is actually recorded as an addition to GDP. GDP only records marketed transactions - at present, there is no market for
many important environmental resources and it is also difficult to place monetary values on them.
One alternative measure is the Index of Sustainable Economic Welfare (ISEW) developed by economists at the New
Economics Foundation who have been at the forefront of developing a system of environmental accounts that make
allowance for the impact of economic activity on the environment. The ISEW adjusts official data on real national output
and makes an allowance for defensive spending (i.e. that incurred in cleaning up for pollution and other forms of
environmental damage, together with money spent commuting to work). Not surprisingly, the net growth of ISEW is well
below that of the official data for national income, output and spending.
The term 'sustainable' means 'enduring' and 'lasting' and 'to keep in being'. So, sustainable development is economic
development that lasts! According to one of the finest environmental economists of his generation, the late David Pearce,
sustainable development means that each generation should pass on at least as much "capital" as it inherits, the Pearce
approach defines capital in broad terms, to include physical capital (machinery and infrastructure); intellectual capital
(knowledge and technology) and also environmental capital (environmental quality and the stock of natural resources).
In 1987 the Bruntland Commission on Environment and Development defined sustainable development as: "development
that meets the needs of the present without compromising the ability of future generations to meet their own
needs”. The current Government supports the concept of sustainable development and focuses on four main objectives
set out below:
Social progress which recognises the needs of everyone: Everyone should share in the benefits of increased
prosperity and a clean and safe environment. Needs must not be met by treating others, including future
generations and people elsewhere in the world, unfairly.
Effective protection of the environment: We must limit global environmental threats, such as climate change
to protect human health and safety from hazards such as poor air quality and toxic chemicals and to protect
things which people need or value, such as wildlife, landscapes and historic buildings.
Prudent use of natural resources: We need to make sure that non-renewable resources are used efficiently and
that alternatives are developed to replace them in due course. Renewable resources, such as water, should be
used in ways that do not endanger the resource or cause serious damage or pollution.
Maintenance of high and stable levels of economic growth and employment, so that everyone can share in
high living standards and greater job opportunities.
Growing interest in the impact of economic activity on our natural and man-made resource base has led to the
development of concepts such as ecological footprints and carbon footprints. The BBC has recently focused on this issue
with a series of reports on ethical man.
Many environmentalists are inherently cautious about the long term impact of growth on our living environment. They are
deeply sceptical about the effects that growth might have in preserving and or improving it. But others argue that the
pessimists are over-stretching their case. Bjorn Lomborg in “The Sceptical Environmentalist” challenges widely held
beliefs that the environmental situation is getting worse and worse. His personal web site is here.
Key points
Economic growth provides important long-term benefits for the population of a country. It can be a route out of
poverty and it creates jobs and wealth.
Inequalities in income and wealth mean that, in many countries, the benefits from growth are not distributed
evenly. This raises questions of equity (fairness) and impacts on our interpretations of how to measure standards
of living.
The environmental consequences of growth cannot be ignored.
Sustainable growth meets the needs of the present without compromising the ability of future generations to
meet their own needs.
There are environmental benefits from countries becoming richer
However, there are major concerns about the impact of fast growth on the world’s environmental resources.
Economic growth is just one indicator of a country’s economic performance. Alternative measures, such as the
United Nation’s Human Development Index & the Index of Sustainable Economic Welfare, take account of other
indicators.
Importance of Business to Government
By James Withers, eHow Contributor
Running a government is a costly process. Many of the world's most powerful nations heavily
rely on investments generated from Big Business negotiations. However, business interests are
also subject to supervision by the government, which alternates between philosophies of
regulation and deregulation of its nation's economy. Additionally, governments of nations around
the world must consider the ramifications of global economic trends upon each of their own
economies.
Interweaving Interests
1. Big Business concerns greatly influence government policy. Early in the history of the United
States, Treasury Secretary Alexander Hamilton lobbied for the creation of a central bank, called
the Bank of the United States. Biographer William Graham Sumner argues that Hamilton's
motive for creating this bank was to interweave the "interests of wealthy men with those of
their government." Over 200 years later, critics of government-sponsored bailouts have
lamented the fact that business entities receive funding that is poorly earmarked and crudely
documented. Thus, many citizens feel that a more clearly defined separation should exist
between a nation's government and business interests.
Emergent Nations
2. Financial stability eludes many emergent nations, which seek access to investment dollars.
Practitioners of arbitrage often aim to take advantage of such financial stability by offering long-
term loans that will guarantee the practitioners enormous returns. Such arbitrage in foreign
markets usually involves investments from a large number of constituents, as well as a team of
lawyers. Examples of emergent markets that are targeted by such arbitrage investors include
countries in Latin America, Eastern Europe, the former Soviet Union, Africa and parts of Asia.
Busting Monopolies
3. Business is not always fair. Sometimes, large corporations can dwarf small businesses and
ensure their extinction. For many citizens, impersonal corporations grow to represent the dark
side of free enterprise. Ultimately, these citizens make appeals to lawmakers and public officials
to prevent robust corporations from monopolizing power in the marketplace. Historically, anti-
trust legislation was used to halt J.P. Morgan's stranglehold on the railway market during the
presidency of Theodore Roosevelt.
Eminent Domain
4. Governments are fickle in their needs. For example, in the United States of America, rights of
land ownership are usually championed by the nation's government. However, on occasion, the
government may abrogate the interests of the owners of private property. If certain land is
deemed necessary for public use, the government may take control of this property as long as
just compensation is provided to the land's owner. In many cases, acts of eminent domain serve
business interests in addition to governmental interests. For example, in certain cases, houses
within a neighborhood may be purchased and demolished in order to facilitate a mall's
expansion.
Global Firms
5. Business concerns can sometimes reach beyond a single government's regulatory powers by
adopting an international character. Business firms may seek a global presence to capitalize on
sales opportunities in foreign markets, as well as to outsource labor in order to take advantage
of a less expensive work force. Despite these advantages to business, governments must
intervene at times to ensure that products of inferior quality (which may pose a public risk) do
not emerge from overseas production plants.
Advantages
They can provide huge monetary rewards with just one proposal. Some government
grants can total in the millions of dollars.
Those who receive government grants find it easier to raise money from other
government and private sources.
These grants can be prestigious and give your organization instant credibility and public
exposure.
Disadvantages
Government grants are a double edged sword. While the simple fact is that they are free money
to complete a set task, one must understand that there is a big difference between free money and
easy money. Government grants come with quite a bit of regulation and red tape. This is of
course designed to help prevent grant fraud and misuse. However, it makes getting these grants
sometimes a lengthy process.
Still, the benefits far outweigh the frustrations. When you consider the fact that you can receive
thousands of dollars to eliminate debt or start a small business or even go back to school, the red
tape and bureaucracy shows itself for what it is, a minor inconvenience. Ultimately you must be
the one to decide if a government grant is right for you.
Read more:
http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_of_government_grant
s#ixzz1ActeG3P4
The volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C
transactions. The primary reason for this is that in a typical supply chain there will be many B2B
transactions involving sub component or raw materials, and only one B2C transaction,
specifically sale of the finished product to the end customer. For example, an automobile
manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and
rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a
single (B2C) transaction.
B2B is also used in the context of communication and collaboration. Many businesses are now
using social media to connect with their consumers (B2C); however, they are now using similar
tools within the business so employees can connect with one another. When communication is
taking place amongst employees, this can be referred to as "B2B" communication.
[edit] Etymology
The term "business-to-business" was originally coined to describe the electronic
communications between businesses or enterprises in order to distinguish it from the
communications between businesses and consumers (B2C). It eventually came to be used in
marketing as well, initially describing only industrial or capital goods marketing. Today it is
widely used to describe all products and services used by enterprises. Many professional
institutions and the trade publications focus much more on B2C than B2B, although most sales
and marketing personnel are in the B2B sector.
Business-to-consumer
From Wikipedia, the free encyclopedia
An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The
transactions that led to the shoes being available for purchase, that is the purchase of the leather,
laces, rubber, etc. as well as the sale of the shoe from the shoemaker to the retailer would be
considered (B2B) transactions.
Contents
[hide]
By 2010, consumers are expected to spend $329 billion each year online, according to Forrester
Research. What’s more, the percentage of U.S. households shopping online is expected to grow
from 39 percent this year to 48 percent in 2010.
In October 2010, an extension of B2C, B21 was coined. Whilst B2C includes all manners of a
business marketing or selling to consumers, B21 is specifically targeted towards an individual.
B21 requires specific Personalization for that individual. B21 requires Insight in order to create
the personalized experience.
[edit] Advantages
According to marketingterms "B2C businesses played a large role in the rapid development of
the commercial Internet in the late 20th century. Large sums of venture capital flowed to
consumers in the form of free online services and discounted shopping, spurring adoption of the
new medium." Business to Consumer e-consumer quickly developed as an alternative way for
companies to sell more products to a larger market.B2C e-commerce provided not only multiple
advantages to a company but also it the consumers. The main advantages for both the business
and consumer are that by opening their market up to B2C e-commerce trade they are reducing
transactions costs. Businesses usually ship their products to a number of stores to make them
visible to the consumer. However, by using B2C commerce they can instead showcase all of
their products on the internet which reduces the cost of transaction. B2C also allows their
costumers to better access information about different product and sellers which broadens the
selection available to their costumers. Business to consumer ecommerce is valuable to the
economy because it creates a more unique way for businesses and consumers to interact.[1]
Integration: Retailers don't have to integrate with their customers' systems. Companies selling
to other businesses, however, need to make sure they can communicate without human
intervention. But Businesses Should Not Be Mean To The Consumer