New Economy vs Old Economy

Topics: Ford Motor Company, Microsoft, Ethics Pages: 21 (6820 words) Published: October 2, 2012
Table of contents

Introduction | |
* New Economy vs. Old Economy| 2|
* Microsoft Corporation| 3|
Ford motor| 3|
Revenue and profit| 4|
Code of ethics statement| 5|
How effective is the firms? | 14|
Conclusion| 17|

* New Economy vs. Old Economy
The world economy has recently changed. A new world economy has emerged over the last decade as two long-run broad trends, globalization and advances in information and communication technology (ICT) have converged. This ‘new economy’ is significantly different to the ‘old economy’, as knowledge has replaced traditional productivity inputs, such as labor and natural resources, as the primary ingredient for economic growth. A new landscape exists and countries must adapt their approaches and policies for development to achieve progress in the future (Droke, 2000). By "New Economy," we understand this to mean a national financial and economic infrastructure characterized chiefly by the predominance of services and technology (i.e., intangible assets), and the abolition of the former infrastructure of physical manufacturing and industrialism (i.e., tangible assets). Hence, the "virtual" economy of computers and electronic commerce replaces the "old" labor-intensive economy involving manufacturing and the movement of physical commodities. So it is as the ascendancy of the virtual over the real. New Economy is global in nature. It is predicated upon the economic interdependence among nations, even those nations that are politically, religiously and ideologically antithetical to one another. In many ways, the New Economy represents a revival of the Tower of Babel, only instead of bricks and mortar; it is bound by a reticular web of technology and transportation. Problem statement:

The distinction between object and knowledge value becomes the most know differentiation of the Old and the New economy company. But how about the company effectiveness? The revenue and profit? How about their job quality and employee performance? Do they have any differentiation in all of these points? Therefore all of these questions need to be answered and are going to be discussed in the course of this research. Research objective:

- To compare the revenue and profit for old and new economy companies. - To determine the content of the code of ethics in each company - To identify their effectiveness.
-To analyze the change in term of people policies and product or service mix. This study aims to gain an deep understanding of the difference between the old and the new economy company and in term of job, which one attract the young generation nowadays? Research Questions

The research questions of this paper include the following:
1. How much of the company’s revenue and profit is generated outside the United States? 2. What does the code of ethics statement for each company say? 3. What changes have they had to cope with in their people policies and product/service mix in the past decade? 4. How effective is the firm?

5. Would you want to work for either of these firms? Why?
This study has looked at the old economy company and new economy company in United States, by comparing (Old Economy Company like Ford) and (New Economy Company like MICROSOFT). * Microsoft Corporation

Headquartered in Redmond, Washington, Microsoft is a multinational computer software, services and solutions company for consumers and businesses. Founded by current chairman William (Bill) H. Gates III in 1975 and co-founder Paul Allen, Microsoft is known globally for its Microsoft Windows operating system and Microsoft Office suite of products, including Internet Explorer, Excel, PowerPoint and Word programs (History Microsoft corporation,2011). Steve Ballmer is the CEO of Microsoft is the chief executive officer of Microsoft Corporation, having held that post since January 2000.

* Ford Motor
Ford Motor Company is an American automaker and the world's fourth...
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