macroeconomics This will be for the Dell Corporation For this Module, think abou

Question

macroeconomics

This will be for the Dell Corporation

For this Module, think about macroeconomic indicators of performance and write a two page paper on the following points..... how recent changes in these indicators have affected the performance of the Dell Corporation. For example, how does the change in GDP affect the sales, profitability, expansion plans or competitiveness of your organization. Or, as another example, has the rise in the national rate of unemployment had any affect on your organizations' operational performance or management decisions?

Below are three examples of what is required for this assignment. The first two are examples of correct approaches and the third is an example of an incorrect approach.

Sample Mini-Analysis (1):

My organization is a beauty shop/spa that caters to middle class women. With the recession and rise of unemployment the shop has had decreased revenue and profit. This has been particularly true of the spa part of the business because that is more of a luxury service than the simple haircut and coloring end of the business.

Notice that the primary focus was on how this macroeconomic indicator has affected the business. This is a good example of the approach to take.

Sample Mini-Analysis (2):

I will begin with the Employment Cost Index (ECI) and why it is important to the well being of TLMP. Companies such as TLMP must be able to anticipate inflation and the impact it will have on currency exchanges and how that would impact their international production and trade. The reason ECI is of less importance to TLMP then some of the other indicators, is because it is a lagging indicator. Albeit important, it is not an indicator that will provide advance data that would allow TLMP to make a change in plans to account for an anticipated change in economic policy.

Notice that the above emphasizes the effect the ECI will have on the costs to TMLP and management has to engage in planning if these costs are expected to increase. It also demonstrates that even though ECI is an important index it is limited in its ability for TMLP management to use it because it does not provide the data in time for the company to use it for its planning. This is a good example of the approach to take.

Sample Mini-Analysis (3):

The management of Pleble Corporation uses the Retail Sales report for its planning. They compare the sales of Pleble on a month to month basis, and break it down by its various product lines to spot where sales are falling or increasing.

Notice that this is NOT a correct focus. There is an important macro-economic indicator called the Retail Sales Report but the above analysis, after mentioning it, goes into a discussion of Pleble's sales report, and that is not a macro indicator because it is only about one company, not the entire economy. The proper focus would have been to utilize the national sales report in a way that would have helped Pleble management to forecast where their sales may be going in the near term future. For example, the downward tend of retail sales over the past 5 months indicates that Peble should reduce their inventory.

There are literally thousands of macro-economic indicators that are reported. Keep in mind that a given organization, such as a home builder, may be affected by housing starts, even though that indicator may have no affect on a defense contractor. The link to Investopedia just below lists 25 of the most commonly used macroeconomic indicators.

Explanation / Answer

Amazon was originally a book selling website. At least that is what I have always known Amazon as. Now Amazon is competing with Microsoft and Google on their services. Although they are moving away from their online retailer, they are moving to grow their company into something larger. Amazon is the largest web-based business currently out on the market. One of these services is the Simple Storage Service or (S3). S3 uses servers and hard drive space to store company information as well as raw data for 15 cents per gigabyte.

The company is experiencing shortfall of customers because of various new entrants to the market. Their profit due to the service is reduced. Total Global revenue earned by the company can be calculated as,

Y = C + I + E + G

Where Y = GDP, C = Consumer Spending, I = Investment made by Amazon in to other businesses, E = Outside payments

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.