Case 1

Chapter 1: Case Questions

1. What challenges do graying populations create for companies?

* For many companies, when retirees leave work on their last day, a lifetime of experience and knowledge walks out the door as well.

* Some companies recognize that they will have to change their ways of doing business.

* Companies may have to adapt their workstations and setup so that it would be comfortable for an aging workforce.

* Companies operating in countries with shrinking populations are likely to face higher wage and salary costs as the supply of labour contracts.

* Firms are likely to face higher taxes as governments struggle to find revenues to support and care for older citizens.

* An increasing portion of the labour force will be employed in caring for retirees, shrinking the availability of labour for other sectors of the economy.

* The structure of consumption will change because the bundle of goods consumed by retirees differs dramatically from that of younger workers.

2. What opportunities do graying populations create for firms?

* Companies can adapt new technologies to meet these demographic changes and challenges in the workforce.

* New markets for products and services can be created so that care for the elderly can be simplified and made easier. Known as “The new business of old age.”

* Through getting the older portion of the workforce to mentor the younger portion, information and experience can be passed down so that not all knowledge is lost when they walk out the door for good.

3. How will demographic changes affect the competitiveness of countries in the international marketplace?

Japan is a country with a demographic that is aging. Because of this they are now at the forefront of responding to these changes with new products and services geared specifically toward the elderly. Other countries that have business in japan may want to start following suit, as they too will have more...