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Bus 602 Final
Question 1.
In 250 words, what role do the measurements of unemployment and
inflation have on the management of an organization?
Question 2.
In 250 words, what analyses might a manager do to learn more about a
specific company or industry? Please provide at least three examples.
Question 3.
In 250 words, what role does trade have, in relation to how an
organization develops its strategic plans?
1. What role do the measurements of unemployment and inflation have
on the management of an organization?
Measurements of unemployment and inflation tells an organization what
it should be doing to strategically price their products, and also acts as a
means to control costs. The unemployment and inflation rates also
indicate to an organization if they should consider increasing or
decreasing hourly wage rates in an attempt to attract new employees.
By evaluating the unemployment and inflation information in the current
market, the company can also decide if whether or not the company
should be acting to cut costs while remaining to compete effectively in
an attempt to retain the skilled help currently employed. The inflation
rates also can help a company determine if it appears, by analysis, that
costs are going to continue to rise due to inflation, or if a reduction is in
the near future, which will bring costs back down under control.
There are two ways to measure inflation. The first is the Consumer Price
Index, which is a measure of price changes in consumer’s goods such
as gas, food, clothing, etc. The second is the Producer Price Index
which is a family of indexes that measure the average change over time
in selling prices by domestic producers of goods and services.
http://www.investopedia.com/university/inflation/inflation2.asp The
government measures unemployment by anyone that is unemployed
and actively looking and available for work. Management of an
organization will take unemployment and inflation into account when it

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comes to pricing their products. Through inflation rates, a company will
have an indication if cost are going to rise or fall so they will know how to
set their prices while remaining competitive. Prime example is the price
of gas. Gas prices can fluctuate numerous times in one week.
Depending on the price per barrel. Companies have to know how to set
their prices due to the rising costs while keeping their price at similar
prices to other companies. One economic concept that was created was
the Phillips Curve. “The theory states that with economic growth comes
inflation, which in turn should lead to more jobs and less unemployment
and inflation and unemployment have a stable and inverse relationship”
http://www.investopedia.com/terms/p/phillipscurve.asp The
unemployment and inflation rates can also be used by management to
determine the size of their workforce as well as setting their hourly wage.
A company can determine which areas to cut costs.
2. What analyses might a manager do to learn more about a specific
industry? Please provide at least three examples.
A manager could perform several types of analyses to learn more about
specific industries. Growth rate analyses for the industry can help to
predict immediate future trends in the industry, combined with a trend
analysis, which would enhance the results to be analyzed. Managers
can perform financial ratio analyses to determine what general direction
the industry is headed in, and would allow management to make
comparisons from past periods (quarters or years) to the present, which
would indicate current trends in the industry. The information obtained
can also tell the manager if the company's goods in the specified
industry have seen recent increases or decreases of demand.
There are a variety of analyses that a manager can perform to learn
more about specific industries. A financial ratio analysis is performed to
help a business get a better understanding of financial results and trends
over time http://www.demonstratingvalue.org/resources/financial-ratio-
analysis A manager can get better understanding of how their
organization is performing. Some key things to remember when
performing a financial ratio analysis is to use accurate and reliable
financial information, calculate a consistent time period and interpreted
in the proper context. Another analysis that can be performed is
benchmarking. Benchmarking is “a standard or point of reference in
measuring or judging the current value or success of your company in
order to determine your future business plans”

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Bus 602 Final Question 1. In 250 words, what role do the measurements of unemployment and inflation have on the management of an organization? Question 2. In 250 words, what analyses might a manager do to learn more about a specific company or industry? Please provide at least three examples. Question 3. In 250 words, what role does trade have, in relation to how an organization develops its strategic plans? 1. What role do the measurements of unemployment and inflation have on the management of an organization? Measurements of unemployment and inflation tells an organization what it should be doing to strategically price their products, and also acts as a means to control costs. The unemployment and inflation rates also indicate to an organization if they should consider increasing or decreasing hourly wage rates in an attempt to attract new employees. By evaluating the unemployment and inflation information in the current market, the company can also decide if whether or not the company should be acting to cut costs while remaining to compete effectively in an attempt to retain the skilled help currently employed. The inflation rates also can help a company determine if it appear ...
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