Drivers for change - part 1

In this lesson

1. 0:00 Pace of change and driving forces
2. 1:39 Globalisation and supply chain integration
3. 2:43 Offshoring and labour cost advantages
4. 3:27 Firm mobility and tax jurisdiction shifts
5. 4:16 Demographic changes and ageing populations
6. 5:22 Falling birthrates and market implications
7. 6:31 Millennials as digital natives
8. 7:22 Growing middle class in developing world

About this lesson

millennials), customer empowerment, and digital technology. Understanding these forces is essential for Strategic Management (E3) and helps you analyse real-world business strategy and decision-making in your CIMA studies. This first part focuses on globalisation and demography. You'll see how companies like Nissan operate across global supply networks, with 85% of parts arriving from overseas and 80% of output exported. The video explains offshoring—how firms move lower-level processing work to countries like India for cost efficiency—and why tech firms cluster in places like Dublin. On the demographic side, you'll learn how ageing populations in developed countries create growing markets for certain goods and services, while falling birthrates and rising middle classes in developing economies reshape global consumer demand. These aren't abstract concepts; they directly influence which markets businesses target, where they locate, and how they structure their operations. By understanding these drivers of change, you'll be better equipped to analyse business environments, anticipate strategic challenges, and explain why organisations make the decisions they do. This foundation prepares you for case study work where you'll need to identify and respond to external pressures on real businesses.

Duration: 8m