EASY
CHARGER
ECONOMIC FORCES
Economic forces have a direct impact on the potential attractiveness of various strategies that represent opportunities and threats for organization are provided in the following variables.
Availability of credit
What is? Limit when a loan from a financial institution is usable.
5 years ago: Portfolio growth was maintained during the second half of 2011, assets of credit institutions have shown great increase in that year, this dynamic was 16.1% to $ 325.7 billion. Chart 14 active credit institutions. GrƔfico 14 activos establecimientos de crƩdito.
Last five years: availability of credit was increased to $ 7.36 billion increase also will be affected by situations IFRS convergence process. Credit institution: total assets were recorded for $ 547.81 billion of which 65.64% the performance of the loan portfolio is explained, 19.81% investments and derivatives and 6.96% for cash.
A November 2015 credit facilities amounted to $ 547.81 billion increased $ 7.36 billion compared to October. At the end of November the total increase was 635. FIGURE 1.
Credit institutions recorded a balance of $ 108.54b. Of this total, the largest share recorded the domestic public debt (TES) with 40.85%.FIGURE 2.
It affects the company because: According to these indicators and the information found, Colombia this year has been a good increase in loan portfolio. The company is in the possibility that their products are sold according the margins seen as national financial institutions have promoted and can further funding to other organizations.
Level of disposable income
What is? is the amount of money that households have available for spending and saving after income taxes, the rates of disposable income in Colombia by 2014 are the following:
Rates in America Latina, Colombia
Income level: upper middle income
GDP at market prices:
$377,7 billion in 2014
population total:
47,79 millons in 2014
-GROSS DOMESTIC PRODUCT 2015
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In current prices (billion USD) 378
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In current prices (billion COP) 707
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Latest 5 years average real growth (%) 4.2
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Per capita 12.6
-VALUE ADDED SHARES (%)
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Primary sector 19.4
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Industry including construction 22.9
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Services 57.7
-CENTRAL GOUVERMENT
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Gross financial debt 37.3
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Net financial debt 34.8
-EXCHANGE RATE (COP PER USD) 1868.4
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Exports of goods and service 17.8
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Imports of goods and services 20.2
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Current account balance -3.3
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For a company like ours portable chargers which is fully involved in the market. It is important to know what income level moves the country in which they are marketing, whether to the marketing of these if is convenient for the commercialisation of these and what risks could have in the process, respect of the economy in the country .
Sources:
Propensity of people to spend
The household consumption accounts for 52% of final demand of the economy in Colombia, companies and institutiones forms and focuses on the consumer side of people.
Magazine "Money" has been monitoring "what Colombians spend", which has reached the conclusion that Colombians spend much of their money on non-durables such as food and clothing and in durable goods such as TVs, home appliances and tools.
This graph shows the type of expenses like ( insurance, pension founds, Credit facilities etc ) and the amount of money that they spend since 2003 until 2015
Grafic taked from Superintendencia financiera de Colombia
For our company is important to know what needs and wants are important for population from Colombia, as this information previously depends the economy, knowing that aspects, we can focus in a market where is explicit according to the expenses of colombians
Sources:
http://pztatis.wix.com/project#!propensity-of-people-to-spend/c224p
Federal government Budget deficits
What is? is the financial document in which the state sample and estimates all revenue and total government expenditure a year. It issues such as economic growth, inflation, total public and oil imports, payment of external debt and the fiscal deficit are set.
5 years ago:the Colombian government worsened by the global economic slowdown in 2011, increasing the deficit and debt in the short, medium and long term. In February 2009 amounts to 1.2% - 1.9% of GDP as government accounts is affected to the slower growth of the economy.
Last five years:the chief of the finance ministry said the country will have sectoral changes. It will be better dynamics in the domestic industry. 2.0 Pipe constructor thanks to the better performance of the agricultural sector. The projection shows that the government deficit in 2016 will be 3.6% of GDP, increasing up from 2015. The structural fiscal deficit 2.1% of GDP by adding a cyclic 1.5% is located. The missing amount will be $ 30.9 billion. In addition, the borrowing plan is 4 billion less than forecast.
SOURCE:http://www.elcolombiano.com/negocios/economia/defict-fiscal-de-2016-sera-de-30-billones-HF3337889 http://www.banrep.gov.co/docum/ftp/borra566.pdf
It helps us because they show whether the company can be profitable or not.
Unemployment trends
Unemployment Rate in Colombia increased to 8.60 percent in December from 7.30 percent in November of 2015. Unemployment Rate in Colombia averaged 11.82 percent from 2001 until 2015, reaching an all time high of 17.87 percent in January of 2002 and a record low of 7.30 percent in November of 2015.
Unemployment Rate in Colombia is reported by the Dane, Colombia.
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Colombiaās economy grew 3.2% in Q3 2015, which was an acceleration compared to the 3.0% increase recorded in Q2 and marked the strongest result since Q4 2014. The economy benefited from a positive boost from total consumption. Data through Q4 point to more moderate growth, as industrial production slowed to a three-month low in October and consumer confidence inched down in November.
Unemployment trents in our country is not a component that affects our company because of our product , our product is not expensive is a affordable for every kind of people, for this same reason this factor will not involved in our company.
Sources:
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http://www.tradingeconomics.com/colombia/indicators
https://www.focus-economics.com/country-indicator/colombia/unemployment
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Foreign Countries Economic Conditions
The growth in the first quarter of 2015 was of 2,8%, a similar number wanted by the Bank of the Republic. Colombia did not register as low growth since the first quarter of 2013, when he scored an increase of 2.9 %. The data although evidence slowdown in the economy , continues leaving Colombia in first place in growth among Latin American countries
The latest industry report in advance by the Ministry of ICT and the Dane , reveals that " in relation to the 53 activities that contribute to the economy, the post and telecommunications activity is in ninth place in the rankings economic activities that contribute most to the gross domestic product , with a share of 3.13 percent, " the third quarter of 2014
Source: DANE
Import and Export Factors
Colombia is the 53rd largest export economy in the world and the 54th most complex economy according to the Economic Complexity Index (ECI). In 2013, Colombia exported $61.2B and imported $57.3B, resulting in a positive trade balance of $3.85B. In 2013 the GDP of Colombia was $378B and its GDP per capita was $12.4k
Value of the dollar in the world markets
What is? It is how it is affecting the dollar on world markets either South America or other continents.
Five years ago:the cause was the 2008 crisis in Colombia weight in past 12 months 36% depreciated. According to Adam Stramwaser of Davos Financial Advisors, a stronger dollar can last for 24 months as the Federal Reserve keeps U.S.A. cycle of interest rate increases and developed economies continue their monetary policies. Exporters of goods and services feel content for example Colombia, Mexico, Chiles, Brazil and Peru; and taking advantage of the increase to sell their products in international markets and receive payments in dollars nary effeBut other contries feel bad because their exports is a net products
Last five years: with falling stock markets and deterioration of the oil is given a strong shock is given where falling 12% in value of just 20 days global markets. The Dow Jones has lost 11%, the German Dax 12.6%, the Spanish IBEX 13.3%, Japan's Nikkei and Shanghai 13.8%. For exporters of raw materials interest rates since June 2015. Colombia increased from 7.22% to 9% approx. increased. GRAPH
http://www.eltiempo.com/economia/indicadores/aumento-del-precio-del-dolar-en-colombia/15400175 http://www.bbc.com/mundo/noticias/2015/08/150819_economia_america_latina_dolar_alza_egn
It affects the company because the dollar has risen too much in recent months thus to buy our products and then resell them we'll pay more interest and in turn can charge more for the product.
Stock market trends
What is it? The market is a mechanism in presenting the citizens and businesses to invest in securities, that may produce a profit or to attract financial resources from those who have it available.
Five years ago: Colombian actions completed 5 consecutive days of borrowing, 35 major companies have been impaired by $ 19.5 billion. The general index of the stock market fell 4.11%. The largest decline occurred in the global economic crisis when it lost 4.31%. In addition there were decreases in Argentina (10.7%), Brazil (8.8%), Chile (6.96%) and Peru (7%).
Last five years: trend analysis is done in the short, medium and long term measuring set price compared to moving averages. . Profitability and risk analysis: indicate change in price in the last day, month, quarter and year over the asset; risk measures indicate the Values-at-Risk or probable maximum loss in 95% of cases. A short term 30 sessions, 180 medium term and long term with quotes (bollinger).
Regarding our company helps because it allows us to look at indexes and indicators to see if in the future we get to invest a company values and thus our company can have greater profit.
Consumption patterns
The consumption patterns are significantly strong in the new innovating technology products that can make more simple the life of the people, the tendences of innovating are increasing and the companies need to invest in develop and innovation, the tecnology of smartphones are taking the world, the companies are adapting to the change and the needs of the consumers, the external batteries of smatphones have been accepted well by buyers, the tend of the external batteries are driving very well our company, but we know that the world are changing and our company are planning to develop the innalambrical charger.
Source:
Revista Dinero. (12 de Marzo de 2014). Obtenido de DINERO: http://www.dinero.com/internacional/articulo/tendencias-consumo-para-2015/203784
Chavez, G. (25 de Febrero de 2015). CNNEXPANSIĆN. Obtenido de http://www.cnnexpansion.com/tecnologia/2015/02/24/se-acerca-la-muerte-del-cargador-como-lo-conocemos
Export of labor and capital
The export of labor to another countries doesnāt affect our industry, becouse all of our workers are colombian so, our industy dont be affected by the foreign labor, our industry are only in Colombia, so we wouldnāt export any worker to other countries.
In the last year the export por labor are increasing in colombia becouse the profesionals of the country are needed in the developed countries so, the export of labor in colombia int the next years will be higher becouse the education and the new competences of the colombian workers are vital to the industries, Our company in the future could work with foreign workers to help to develop our new proyects.
Worker productivity levels
In Colombia, the levels of productivity of the workers are lower than the other countries, that affects the productivity and the cost of production of the products, becouse in Colombia are needed more workers and more hours of work to reach the productivity goals of the Company, the work of 4.5 colombian workers are the same of 1 worker from United States. However, the colombian economy and the peace process are developing the productivity and then the labour will be more efficient, āThe Colombian Government has undertaken important reforms in recent years to address these labour market and social challenges, and the efforts are gradually paying offā. However, further progress is needed to enhance the quality of jobs and well-being for all. this will be affect our industry beocuse being the portable chargers are made by workers and the labour are an important factor of the cost of production of the portable charger.
OECD. (20 de Enero de 2016). OECD ilibrary. Obtenido de http://www.oecd-ilibrary.org/social-issues-migration-health/oecd-reviews-of-labour-market-and-social-policies-colombia-2015_9789264244825-en
Money Market rates
Colombia is a country that throw through the years it have been changing, in nowadays this country try to become a modern country, Colombia try to achieve this goal through the technological devices especially use modern products that the people use day a day, this is because the Colombian people has the same feeling like a American people, want to be fashion, and follow all the American trends, and American trends is always have need cellphone, computer or whatever electronic devices, For all the things mention in this paragraph it will benefic our business, everybody in colombia consumption this articles and they will need the easycharger, it really will help their to maintain working the cellphone all time.
sources:
EL TIEMPO. (2015). En Colombia hay 14,4 millones de usuarios de 'smartphones'. 02/02/16, de EL TIEMPO Sitio web: http://www.eltiempo.com/tecnosfera/novedades-tecnologia/colombia-el-tercer-pais-de-america-latina-con-mayor-numero-smartphones-/15066597.
DINERO. (2015). Colombia le apuesta a la ciencia, tecnologĆa e innovaciĆ³n para alcanzar el desarrollo. 02/02/16, de PYMES Sitio web: http://www.dinero.com/edicion-impresa/pymes/articulo/inversiones-ciencia-tecnologia-innovacion-colombia/212458
Gross Domestic Product Trend
The meaning by (Banco de la republica) the gross domestic product is: āThis is the total amount of goods and services produced in a country during a given period of time.ā Colombia have four principal sectors in the economy that affect the direct way gross domestic product: the first is agriculture sector, the second is manufacturing sector, third is commercial sector and fourth is financial sector. Is possible to think manufacturing sector affect directly our enterprise easycharger, actually it does not affect, and the reason is Colombia in the manufacturing sector does not affect the technological products it is because manufacturing sector in Colombia does not produce technological products.
sources
Biblioteca Virtual. (2008). Productos mĆ”s representativos de la economĆa colombiana. 02/0216, de banco de la republica Sitio web: http://www.banrepcultural.org/blaavirtual/ayudadetareas/economia/productos_economia_colombiana
Coalitions of Lesser Developed Countries
United Nations āThere are currently 49 countries designated by the United Nations as least developed countries, with over 600 million inhabitants. The list of these countries is reviewed every three years by the Economic and Social Council. The criteria for defining a country as least developed is as follows: low income, weak human resource and low level to economy diversificationā it does not affect our enterprise the reason, Colombia do not have free treatment agree or other type of the treatment to make business with anyone of the country in the list of the coalitions of lesser develop countries.
Naciones Unidas. (25/04/07). PaĆses menos adelantados. 02/02/16, de centro de informaciĆ³n Sitio web: http://www.cinu.org.mx/temas/desarrollo/dessocial/ldc/paisesmadel.htm
Tax rates:
The percentage at which an individual or corporation is taxed. The tax rate is the tax imposed by the federal government and some states based on an individual's taxable income or a corporation's earnings.
Colombia, like any other emerging economy, is facing an increasingly competitive international economic environment, with certain advantages offered to foreign investors on taxes and incentives.
Taxes in Colombia can be of National or Regional level. National taxes apply to all the inhabitants of the national territory with the same tariff, meanwhile regional taxes have tariffs within a range determined by national law, which regions cannot surpass. Here is brief description of the most important taxes:
Tomado de : Procolombia (taxes in Colombia)
The general income tax rate is 25% for national or foreign persons with a permanent establishment or branch in Colombia. For legal entities that are users of free trade zones (with exception of commercial users), the applicable income tax rate is 15%. Certain companies deemed āsmallā on the grounds of their asset volume and number of employees1 , which started operations as from 2011 and following, shall have a special income tax rate as follows: 0% during the first two years, 6.25% during the third year, 12.50% during the fourth year, and 18.75% for the fifth year. They shall be subject to the general rate as from the sixth year of operation. Foreign companies without a permanent establishment or a branch in the country are subject to a special income tax rate, as follows: for the year 2015, the rate will be 39%; for the year 2016, the rate will be 40%; for the year 2017, the rate will be 42% and for the year 2018, the rate will be 43%. From January 1, 2019, this rate will be lowered to 33%.
TAX REGIME - CHAPTER 7 - LEGAL GUIDE TO DO BUSINESS IN COLOMBIA 2015
Fiscal Policies
Monetary policies:
Fiscal policy is the use of government spending and taxation to influence the economy. When the government decides on the goods and services it purchases, the transfer payments it distributes, or the taxes it collects, it is engaging in fiscal policy.
If the government decide to implement this policie, the consecuences will affect the publis sppendin and the taxes, and then will be impacted the goods and services market. http://www.minhacienda.gov.co/HomeMinhacienda/politicafiscalhttp://queaprendemoshoy.com/que-son-y-como-afectan-las-politicas-monetarias-y-las-politicas-fiscales/
Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault (bank reserves).
When the Banco de la RepĆŗblica alters its intervention rates, it affects the marketās interest rates, the exchange rate and the cost of credit, thereby activating mechanisms that affect the following:
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Financial markets.
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Decisions by economic agents on expenditure, production and employment.
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Expectations of economic agents, based on of policy announcements.
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The inflation rate, after a long and variable period of time.
These mechanisms are known as Transmission Mechanisms. They refer to the processes or channels, through which monetary policy decisions influence the product (GDP) and inflation.
Tomado de: Banco de la Republica de Colombia(banrep.gov)
Income differences by region and consumer groups
The diffent distribution of the income in each regiĆ³n is not a reelevant factor, becouse the portable charger are an product that are selled everywhere and the distribution of the product will be proporcionated by the needs of the good, so the income of the diferent parts of the country doesnāt affect our industry.