Assignment 6A- Identifying Opportunities in Economic & Regulatory Trends

Economic trends

1.     Interests Rates have Leveled Of

a.     Where I found it? I found it at The Balance in the top 6 economic trends.

b.     I believe an opportunity exists because with interests rates leveling off, the cost of loans for big purchases (e.g homes, cars, etc) are also stabilized.

c.     Customer of this opportunity? Customers include people purchasing big ticket items (as listed above) which can vary in age (e.g you can be in your late 30’s purchasing a home or in your late 20’s buying a car). They benefit from interest rates leveling off.

d.     Difficult/easy to exploit? Both. As of now, the economy does not seem to be falling back into a recession which makes it easier for people to take out loans, etc. It’ll be difficult because this is not a permanent state, it can change within the next 10 years where interest rates could be higher, no longer making loans for big purchases stabilized.

e.     Why I saw the opportunity? I saw the opportunity because this affects my big purchases. I am planning on buying a car and if interest rates are stabilized, it’ll help be take out loans if needed. I also know may people dependent on loans because often times, it’s difficult to come up with large amounts of cash for something you need (e.g an education at UF)

2.     America Is Declining in Global Economic Power

a.     Where I found it? I found it in the Balance under Top 6 Economic Trends.

b.     I believe an opportunity exists because America being behind leaves opportunities for us to catch up to other countries such as China, Russia, India. We can try to strengthen our economy to leverage more global economic power, just as they did.

c.     Customer of this opportunity? Large companies/corporations that are willing to have a domestic answer to this situation.

d.     Difficult/easy to exploit? Difficult because we are dealing with many large economic powers and, just as we are trying to strengthen their economies, they are trying to improve theirs. Many factors play a role in the gaining more economic power with the efforts divided up among several players.

e.     Why I saw the opportunity? I saw this opportunity because economics has always been interesting to me since high school, but it is a complex subject that is hard to grasp. Understanding that the U.S is just a piece of a larger picture, I believe will help us as consumers and help us learn about where our future could lead.

Regulatory Trends

3.     Gainesville delays plastic bag, Styrofoam ban

https://www.gainesville.com/news/20190329/gainesville-delays-plastic-bag-styrofoam-ban

a.     Where I found it? I found it when I was thinking about issues that are prominent on social media and how people are attempting to bring awareness to single use plastic, Styrofoam/other environmental issues.

b.     I believe an opportunity exists because the enforcement of the ban is postponed until January 1, 2020 which gives businesses in Gainesville time to come up with a solution if they are heavily dependent on Styrofoam products. Businesses will need to comply to the ban or else they will be fined $250 for each penalty, $500 in Coral Gables after the 3^rd offense. Consumers are more aware of their impact on the environment therefore, they will support businesses that align with their own morals.

c.     Customer of this opportunity? Businesses that are dependent on single use plastic or Styrofoam (e.g restaurants, bars, bakeries, etc.)  are the ideal customer because they will be penalized if they continue to use Styrofoam, etc. Their customers will need to go containers, cups for drinks, etc. and the business must provide the customer’s needs by offering more eco-friendly options.

d.     Difficult/easy to exploit? The opportunity is easy to exploit because a company can create recyclable, environmentally friendly to go containers or cups and sell it to other businesses. There are already restaurants that use these alternatives which means these type of companies exist, but now with the ban in Gainesville, it will only increase demand.

e.     Why I saw the opportunity? I saw this opportunity because I try to cut the use of harmful plastics and Styrofoam in my day to day life. I find it really interesting to earn about corporate social responsibility and how we can be more eco-friendly. I am trying to be a more conscious consumer through supporting B corporations and sustainable companies because a business is more than the product or service they offer you. It is also about what that company’s morals are, therefore, I believe this ban is a great way for businesses to have a positive impact on their environment and show their customers they do.

4.     Gainesville City Commission To Discuss Affordable Housing Recommendations

https://www.wuft.org/news/2019/05/23/gainesville-city-commission-to-discuss-affordable-housing-recommendations/

a.     Where I found it? I found it as I searched through issues pertaining to UF students. I found it on WUFT.org which reports news for North Central Florida.

b.     I believe an opportunity exists because affordable housing regulations can open more options  for students or anyone in Gainesville in need of cheaper options. Most of the time, students cannot afford $900+ a month and need affordable (the definition varies from person to person) with high safety standards. A higher minimum standard will involve many companies working together to create a higher standard of living for consumers.

c.     Customer of this opportunity? The prototypical customer are people in need of housing in Gainesville that are currently living in less than great quality housing (e.g pests, landlords do not listen to their needs, discriminate, too expensive with not up-to standard housing). Another customer could be businesses willing to work with these housing areas to form higher level housing (e.g energy companies willing to work with them to maximize energy efficiency).

d.     Difficult/easy to exploit? It’ll be difficult to exploit because some energy companies do not care about energy efficiency but only about profit. Convincing them to work with housing units may be difficult. It is also a collective effort of many companies (electricity/energy/water/pest control) and getting them on the same page to form a higher standard will be a hard task.

e.     Why I saw the opportunity? . I’m sure many students have felt the same frustration of seeing housing stating one amount, but end up adding miscellaneous charges that’ll increase the rent from the original amount by $100-$200. Majority of UF students rent housing, with some exceptions that buy condos, and I’ve lived in housing that was less than great with pests, etc. The overages are through the roof and housing charging for the smallest details just to drain more money from students only trying to find a place to live. This regulation of Affordable housing with high standards will be a great change in the right direction.