Question

What are the macroeconomic conditions affecting the IT industry?

Select “yes” for those statements that are accurate and choose “no” for those that are not.

1. From a political perspective, Ricoh should be aware of regulations from ITAC (Information Technology Association of Canada) who is actively promoting and supporting the expansion of the IT services industry in Canada as this move will likely impact Ricoh in many ways.
   (Click to select)  Yes  No
   
2. From an economic perspective, Canada enjoys a strong economy with a strong GDP growth.
   (Click to select)  Yes  No
   
3. Low oil prices are causing turmoil in business investment in western Canada, leading to a negative impact for the economic component of the macro-environment.
   (Click to select)  Yes  No
   
4. A weak Canadian dollar makes the cost of importing more expensive.
   (Click to select)  Yes  No
   
5. From a social-cultural perspective, Ricoh is a strong brand name because of the strong privacy policies it has in place.
   (Click to select)  Yes  No
   
6. Consumers have become more selective and better informed about their purchases. This macro-environmental force strongly impacts this industry.
   (Click to select)  Yes  No
   
7. The IT industry will be impacted by a trend toward digital workplaces that are connected by services over the Internet instead of physical documents.
   (Click to select)  Yes  No
   
8. Ricoh will need to contend with more flexible core technology platforms that allow for integration for third-party applications.
   (Click to select)  Yes  No
   
9. The Federal government is taking a stronger stance on climate change and imposing environmental levies on products for equipment recycling.
   (Click to select)  Yes  No
   
10. Antispam legislation has not reached Canada and hence will not directly impact Ricoh at this time.
    (Click to select)  Yes  No
    
11. PIPEDA (Personal Information Protection and Electronic Documents Act) has imposed very strict regulations on the use of personal information by organizations engaged in private sector commercial activity. This regulation impacts Ricoh from a legal perspective.
    (Click to select)  Yes  No
    

Answer 1

Solution:

• YES
  It should well in advance in the consideration before promoting the IT services and hence should be well aware of the implecations that may arise because of the promotions that are being carried out by Ricoh. Hence, the statement is appropriate.
  
• NO
  Canada is a developed nation and hence it has a strong economy. However, since it is a dveloped economy the rate of growht of GDP of Canada cannot be considered as a good growth rate and hence the statement made may not be appropriate for the GDP growth factor. HEnce, the statement is not correct.
  
• YES
  With reduced oil prices Canada did suffer the losses because Canada has net exports in Oil and because of poor prices it had a negative impact on Canada. Hence, the statement is correct.
  
• YES
  With poort canadian dollar we will have to bear the extra costs for exporting from countries that have a stronger currency that Canadian Dollar. However, if Canada is importing from a country with devalues currency that CAD then there will be positive impact on the esports.

**Can solve only first four parts as per Chegg policy**