Economic Indicators Of The Disney Company

1401 WordsFeb 14, 20176 Pages
Economic indicators Economic indicators refer to economic series statistical figures used to make future prediction economic activity in the organization or country. The economic indicators are useful in each organization since they measure specific economic parameters in the market and can be used to forecast the future market trends (Baumohl, 2016). For instance, the company like Disney uses these economic indicators to curb and minimizes the difficult economic situation that may arise. There are so many different types of the economic indicators used. In this case, the Disney Company will use the following economic indicators: consumer price index; productivity and cost; employment cost index; producer price index; consumer confidence…show more content…
Also, the consumer price index measurements can be used to forecast the future economic prices. Hence, the company will use the suitable environment to achieve its goal of maximizing profits and also minimizing the costs. Productivity and costs Productivity and costs an economic indicator that measures the prices changes using the productivity and costs indicators. The productivity indicator measures the labor effectiveness and efficiency in the production of the goods and services in the organization. The costs indicator measures the unit labor costs of producing each product in the economy. The labor productivity is measured by change in the output per labor hour over a specific period of time. So the Disney will use the productivity and costs to maximize the production without increases workforce. Both productivity and costs measure inflationary trends in salaries. The productivity and costs affect the economic directions. The Disney Company will be able to increase labor effectiveness and efficiency which in turns leads to higher gains. This leads to an increase in the performance thus the company growth. Also, high productivity leads low inflationary prices hence friendly market to the consumers of electronics and appliances of the Disney Company. The productivity and costs as an economic indicator will help the Disney Company sustain higher growth due to labor efficiency. Hence, the labor productivity growth will

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