Milestone 1: Business Recommendations Based on Economic Projections
- Submitted by: barneymia
- Views: 2742
- Category: Politics: Economics
- Date Submitted: 04/11/2010 02:34 PM
- Pages: 7
- Report this Essay
Milestone 1: Business Recommendations Based on Economic Projections
ECO/561
Business Recommendations Based on Economic Projections
Larson is a monopolistic firm competing in the global market for electronic equipment batteries. With operations in America and Germany, Larson produces and sells batteries for anything from laptops to toys. Prior to the economic downturn, Larson, held a stable position in the marketplace; however, the business is now facing financial issues involving a steady decrease in market share. Profits are at a record low (University of Phoenix, 2004).
The financial records for 2009 are so dismal that the Larson CEO put together a team to study the current economic conditions and recommend the actions to change the business model resulting in increasing market shares and profits. Key economic conditions include the following:
|Economic Conditions |America |Germany |
|Unemployment Rate |9.9% |10.8% |
|Inflation |2.3% |1.7% |
|GDP |$14.6 Trillion |$2.8 Trillion |
|GDP Per Capita (2008) |$32,560 |$34,200 |
|Federal Funds Rate |.25 | |
|Discount Rate |.50 | |
|Population |305 Million |82.3 Million |
Table 1 Key Economic Indicators
Export figures include:
|Export Goods |Percentage Exported |
|Production Machinery and Equipment |32.4%...
ECO/561
Business Recommendations Based on Economic Projections
Larson is a monopolistic firm competing in the global market for electronic equipment batteries. With operations in America and Germany, Larson produces and sells batteries for anything from laptops to toys. Prior to the economic downturn, Larson, held a stable position in the marketplace; however, the business is now facing financial issues involving a steady decrease in market share. Profits are at a record low (University of Phoenix, 2004).
The financial records for 2009 are so dismal that the Larson CEO put together a team to study the current economic conditions and recommend the actions to change the business model resulting in increasing market shares and profits. Key economic conditions include the following:
|Economic Conditions |America |Germany |
|Unemployment Rate |9.9% |10.8% |
|Inflation |2.3% |1.7% |
|GDP |$14.6 Trillion |$2.8 Trillion |
|GDP Per Capita (2008) |$32,560 |$34,200 |
|Federal Funds Rate |.25 | |
|Discount Rate |.50 | |
|Population |305 Million |82.3 Million |
Table 1 Key Economic Indicators
Export figures include:
|Export Goods |Percentage Exported |
|Production Machinery and Equipment |32.4%...