Sabana Consulting

 

VALUE OF THE DOLLAR (EXCHANGE RATE)

Affects our project given the situation that any of our prospects or potential customers importing raw material, technology or equipment, will delay their activity, waiting for better conditions. COP: $3.102.60

 

http://useconomy.about.com/od/tradepolicy/p/Dollar_Value.htm

 

 

 

STOCK MARKET TRENDS

As we mentioned above, we are living within a globalized world and as investors or entrepreneurs we must have in mind the world's trends to plan ahead and focus business efforts with those segments with the best potential of growing and current performance. We have different information sources Bloomberg could be a global source and BVC give us the local detailed trends. The COLCAP is a major stock market index which tracks the performance of the 24 most liquid stocks traded in the Colombia Stock Exchange. An example for our country could be Infrastructure and Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COLCAP Index as per Friday, August 21, 2015

 

 

 

 

http://www.bloomberg.com/research/sectorandindustry/overview/sectorlanding.asp?region=US

https://www.bvc.com.co/pps/tibco/portalbvc/Home/Mercados/enlinea/indicesbursatiles?com.tibco.ps.pagesvc.renderParams.sub45d083c1_14321f5c9c5_-78350a0a600b=action%3Ddetallar%26org.springframework.web.portlet.mvc.ImplicitModel%3Dtrue%26

http://www.tradingeconomics.com/colombia/stock-market

 

 

FOREIGN COUNTRIES ECONOMIC CONDITIONS

Global Markets and Free Trade Agreements are affecting consumer spending all over world. If there is a global crisis or an economic crisis of any specific country associated to a FTA with Colombia, this will originate a decrease in the amount of money spent by organizations and people in the market place. Moreover, organizations will be forced into firing a large number of their employees or retaining them with significantly reduced salaries affecting directly our opportunities as human resources suppliers. An example could be Petroleum industry crisis, which has driven an economic recession in many countries and it, has driven a high workers turnover within this economy sector.

The Web Page of the Economy Watch, provide a Global Economic Statistics Database service detailed information and comparisons. As an example, the graphic below corresponds to the Unemployment Rate in Colombia.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

http://www.economywatch.com/economic-conditions  

http://www.economywatch.com/economic-statistics/economic-indicators/

 

 

IMPORT-EXPORT FACTORS

 

Although these factors do not affect us directly, a deep analysis will find that there are some ways how import and export trading would affect us. Answering these questions would help us understand our opportunities. ¿Are there any segments of our interests? ¿Are they manufacturers or merchants?; ¿are the Organizations local or do they have regional or multinational interests?; ¿What products are they going to import/export?; ¿What markets ( Countries ) are they targeting?. These answers together with the analysis of the economic forces will guide us to plan our segments of interests and help us to identify the ideal employee profile and professional competencies. As an example below we are showing some Graphics (percent Change) related to Import-Export tendency in Colombia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

http://www.enotes.com/homework-help/what-factors-affect-export-import-briefly-discuss-373969

 

 

 

DEMAND SHIFTS FOR DIFFERENT CATEGORIESOF GOODS AND SERVICES

 

This is a very important factor because it tells us that the service sector in Colombia is growing very fast. The consequence of this is that people are now going to invest more in the service sector and also that the competition will be a lot more strong in this sector.

 

 

 

 

 

 

 

 

 

 

 

http://www.larepublica.co/comercio-exterior/en-colombia-el-sector-servicios-creci%C3%B3-de-forma-desproporcionada-jos%C3%A9-guillermo

 

 

INCOME DIFFERENCE BY REGION AND CONSUMER GROUP

 

 

SML= $644,350 COP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This key variable is important to us because we can measure the income of the people in Bogota. We can see that in Bogota there are more sectors in which the income is low or very low. With this we can focus on the places with low income or medium low income because they are the ones that need more job opportunities.

 

http://www.movilidadbogota.gov.co/hiwebx_archivos/ideofolio/06-CaracScioecoBta_15_1_40.pdf http://contenido.metrocuadrado.com/contenidom2/ciudyprec_m2/inforbog_m2/informacingeneralbogot/ARTICULO-WEB-PL_DET_NOT_REDI_M2-2026901.html

 

 

PRICE FLUCTUATIONS

 

This table show us how much does the price fluctuates in Colombia. As we see the prices in Colombia have a big variation among time and it is never a stable factor. This key is important because every person with a company needs to know how prices change in terms of threats and opportunities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference: http://cubindices.dane.gov.co:8084/Dane/intermedio_dinamicos.jsp

 

 

EXPORT OF LABOR AND CAPITAL FROM COLOMBIA

 

This key economic factor has being increasing in Colombia in the past years. That means that Colombian companies are growing and entering the global market. In this matter we can use this factor in terms of opportunities and threats because companies would be requiring more labor as they grow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference: http://www10.iadb.org/intal/cartamensual/Cartas/Articulo.aspx?Id=4fbb7e68-b5eb-47b0-a744-ff8b69d7c35a

 

 

MONETARY POLICIES

 

The Republic Bank of Colombia is the one in charge of controlling these monetary policies. They use them in order to keep the inflation rates low and stable. The main objective of the policies is to combine the price stability with the maximum growth of the product and labor. This decisions affect every sector in the economy because it have consequences in credit, decisions of costs, production and employment, asset prices and the inflation rate.

 

Reference: http://www.banrep.gov.co/es/politica-monetaria

 

 

 

FISCAL POLICIES

 

The fiscal Policies can affect our economic sector for two reasons:

1. Deflationary: An increase in the taxes could give us lower profits

2. Expansionary: Lower taxes will increase costumers spending, that will help us to generate higher profits

 

http://www.economicshelp.org/macroeconomics/fiscal-policy/fiscal_policy/

 

 

EUROPEAN ECONOMIC COMMUNITY (E.E.C) POLICIES

 

One of the objectives of the E.E.C is to join nonmembers countries, or associate thhemselves with it, this will affect the economy because if the country where the business is located is associated with the eec, there will be a lot of changes in the Policies in general to make easier the trade with those countries.

 

http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=2880&context=lcp

 

 

ORGANIZATION OF PETROLIUM EXPORTING

 

This organization is aim to the equality the petroleum policies of its members and to safeguard the interest of each country.

Furthermore, the OPEC try to ensure oil prices, and secure fair returns to producing countries and investors in the oil industry.

All the decisions made by this organizations will affect the members economy.

Thus the dolar price will increase or decrease depending of the incomes caused by the oil industry, and vice versa, and this will affect our industry because the oil companies could be or could not be customers of our services. According to Portafolio magazine the OPEC decided to maintain the production of 30 million barrels per day, making the international prices of petroleum to decrease and affecting in a negative way the Colombian petroleum industry.

 

http://marketrealist.com/2015/02/strengthening-dollar-affected-oil-prices/

http://www.opec.org/opec_web/en/publications/345.htm

http://www.portafolio.co/economia/las-consecuencias-la-decision-la-opep-colombia