Business Recommendations Based on Economic Projections
Business recommendations basing on projections are very core in the achievement of the expectations or even better the achievement in terms of time and profitability. The company’s projections which cover a period of five years shows that the business needs to be expanded and at the same time increase the profits.
In order to achieve this milestone, the company must make some decisions which will catapult the attainment of these expectations. The various perspectives of future projections therefore provoke decisions that govern the same set objective.
Larson’s future expansion plan clearly shows that the company is faced by challenges throughout its life cycle and therefore there should be decision to act as antidotes during challenging times and better the performance during the most profitable or maturity stage of the business (McConnell, Brue & Flynn, 2009).
The decisions that are appropriate for the company therefore go hand in hand with the projections.
GDP Growth Rate in United State
The positive increase in the GDP in the fourth quarter should be maintained. For maintenance of this it is in order that the following decisions are necessary; the personal consumption should be encouraged through quality products and price incentive for the clients, improving exports through extensive marketing outside USA and encourage private investors so that the running capital is increased (Bureau of Economic Analysis, 2009).
The GDP of Germany increased by 0.7% in the last quarter of the previous year. The upward trend can be maintained or even made better through the use of various strategies. First the company greatly depends on export as the main economic pillar.
It is recommendable therefore that the export policies that encourage export should be implemented, these include better relationship with other countries and increase of market across the world. The goods being exported can be diversified at the same time exploration of internal market to increase or maintain the GDP (Global Finance, 2010).
Consumer Loyalty
Consumer loyalty is largely based on their confidence on the company’s products. The best way therefore for the company to win and maintain consumer base is to ensure that the quality of the product is up to the expectations of the consumer. Customer support relations should be implemented such that the clients’ views and recommendations gathered and implemented.
This helps the clients to feel part of the company and therefore increase their loyalty and consequently the customers will improve their willingness to spend (Bea, 2010).
Economic Future
The economic future of the company is based on proper decision making at every phase during the company’s life cycle to ensure that there are enough measures put in place for instance during the growth stage, marketing is very instrumental and customer promotion is also key.
Expansion
The expansion of the business should be based on adequate research of the market. It is important to carry out an extensive study about the competitors also so as to have enough information. The management should also carry out efficient site survey to ensure a strategic position to capture the market.
The quality of production in the new plant however should be maintained to ensure a good brand name in the market and thus increase consumption, increasing the revenue of the company.
U-SHAPED Economic Future
This has projected a reduction in the sales in the following year. It is recommended therefore that the company should ensure that their consumers are given incentives so as to encourage them to buy the goods. Due to lack of loans the company should seek for external investors who are willing to buy in order to increase the sales.
The company should also introduce credit facilities since this will help in increasing sales during the times when the client are financially disadvantaged. Alternatively the company’s production should be shaped to fit the demand to save on cost of production by avoiding over production (Orit & James, n.d).
The V-SHAPED Economic Future
The cost of fuel-cell plug in vehicles should be made lower during the introductory stage so that it can attract more consumers in the rather competitive field and overpower the alternative sources. Marketing of the products’ superiority over the current battery is of importance and therefore the company can maintain some static performance before capturing the market and increase drastically.
W-SHAPED Economic Future
The intermittent future of the company can be evaded through exploration of alternative production of cheaper batteries to gather for the demands throughout all the seasons. The company should put in place measures such as price regulation, incentives and credit facilities during the moments when the company is experiencing downward trend.
During the times when the company is on an upward trend they should invest in winning a brand in the market through the use of quality and rebranding where possible. The production also should be in tandem with consumption. The company should also explore exporting their goods to other countries and thus increase market base to aid during the times when the performance is low (Virts, & Garrett, 1970).
The W-Shaped economic future, details a recovery cut short by recession, then a second rebound. The slowdown in this unstable economy has created a major problem for Larson to cut back on business expansion to other countries.
In conclusion it is important to develop efficient measures to ensure that destructive anticipations are averted while positive projections are promoted (Robbins & Judge, 2007).
References
Bea. (2010). U.S. Department of Commerce & Bureau of Economic Analysis. Web.
Global Finance. (2010). Germany Country Report:GDP data and GDP forecast. Web.
McConnell, C.R., Brue, S.L., & Flynn, S.M. (2009). Econmoics: Principles, Problems, and Policies. New York, NY: McGraw-Hill Irwin.
Orit, G., & James, L. (n.d). Profit Pools: a fresh look at strategy. Harvard Business Review, 76(3), 139.
Robbins, S., & Judge, T. (2007). Organizational Behavior (12th ed.). Upper Saddle River, NJ: Prentce Hall.
Virts, J.R., & Garrett, R.W. (1970). Weighing risk in capacity expansion. Harvard Business Review, 48(3), 132.