How Companies Maximize Profits

Another important factor to consider when starting a business is the “business cycle.” The business cycle is the fluctuations in economic activity that an economy will experience over a period of time. We have experience may business cycles in the United States. We refer to them as expansions and recessions. In an expansions, the economic outlook is good and growth happens, without inflation. Recessions are when the economy is shrinking and the determination factors for a recession include unemployment, low industry production, decrease sales and lower incomes. Since 1854, The United States has experienced 33

Great example to this problem is when government invade the business. Government role to protect the producers and supplier in underproduction and at the same time also protecting the poor customer who cannot afford o buy the products with the set price. It happens a lot in festive seasons, government will proposes price floor for Dutch Lady company which they must set the minimum price that need to be implemented. For consumer government will set the price ceiling that allow poor customer to purchase the products. This situation just to help the underproduction issues which demand is greater than

Unit 38 Business and the Economic EnvironmentLearner name Assessor nameSameeha Hussain/Antonio ZarroDate unit issuedUnit DeadlineDate unit submitted by student27/01/1419/04/14 Criteria referenceTo achieve the criteria the evidence must show that the learner is able toAsst Task no. Assessor initial date when metPASS CRITERIAP1 Explain the effects of changes in the economic environment on a selected business P2 Identify how government policies impact on a selected business P3 Identify the impact of government spending on a selected businessP4 Explain how both fiscal and monetary policy decisions have affected a selected businessP5 Describe the impact of international factors on a selected business M1 Analyse the implications of

All of these factors have an enormous impact on my selected business (Barclays) as the economy goes from growth and decline. As well as many others, Barclays is majorly affected as it is in the financial industry. These different factors appear throughout what is called the ‘Business Cycle’. The cycle shows the fluctuation of the activity within the economy over a period of time and consists of 4 main stages; as well as many others,

The business cycle expands and contracts as the GDP grows or shrinks. The business cycle includes periods of recession and expansion, and peaks and troughs. Although the business cycle can appear to be a volatile up and down movement, the long term movement of real GDP is generally not affected and reaches upward. In an article by Langelett and Schug (2005), the authors discuss how real GDP and business cycle changes are related. A business cycle begins with an expansion where real GDP is rising and reaches the high point or peak of the expansion (Langelett &Schug, 2005). During this time, individuals and businesses feel comfortable with the current state of the economy and begin spending more. A good economy can last many years although, inevitably, the economy will begin to slow. During times of recession, individuals and business feel uneasy about the future and reduce their spending causing the GDP to decline. The GDP is an important measure for voters to comprehend when deciding between candidates and their economic

Monetary policy, in the short run, has an impact toward the demand for goods and services. That is, monetary policy has a distinct influence over inflation and other economic factors, not only at the federal level, but at the state and citywide levels. Monetary policy will influence the financial conditions facing firms and households in the environment, even at the micro level. Thus, employees who produce goods and services are impacted, as is the demand for those goods and services. When monetary policy imposes changes, the financial conditions that affect the economic activity in specific sectors are influenced as well. The federal government, through fiscal policies

The product or service offered by a firm is to a large extent determined by the market segment the firm wants to capture. And in most cases, when the firm knows what segment of the market they want to capture, it makes the decision of their product offering easier. A good way to further explain this would be to consider two movie theaters one operating near a university campus and one located in the down town part of the city, the cinema close to the school would easily identify their market as student and offer price ranges and viewing times that are tailored to suit the lifestyle of a student while the cinema operating downtown might not be incline to pursue that same strategy they can price their can decide to sell their tickets at a higher price because they are not targeting the same markets. Although this paper isn’t about movies, the example above I hope show how the segments the company is targeting sometimes helps determine the product the company offers.

Economic influences play a major role in the success of a company especially when consumers are hesitant on spending or investing their disposable income or have many choices of who they will purchase from. Demand shifts influence profitability, which has a direct effect on the company’s ability to remain successful. Companies must carefully analyze the industry within they fall and understand how economic influences will affect their functions and infrastructure. Big Drive Auto Company is a major player in the market of automobile

Economics factors greatly affect how the business is operating and how they make a decision by looking at their performance that impacts their company. This is how Thomson operators make their decision

The four years undergraduate studies in International Business Economics at University of Nottingham Ningbo China have familiarized me with the basics of statistics, calculus, accounting, and financial management, which help me to identify factors that will influence the company operation from both macroscopic to microscopic perspective. I am particularly

In general the economy tends to experience different trends. These trends can be grouped as the business/trade cycle and may contain a boom, recession, depression and recovery. A business/trade cycle (see figure 1) is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real Gross Domestic Product (GDP) and other macroeconomic variables. Samuelson and Nordhaus (1998), defined it as ‘a swing in total national input, income and employment, usually lasting for a period of 2 to 10 years, marked by widespread expansion or contraction in most sectors of the economy’. These fluctuations in economic activity usually have implications on employment, consumption, business confidence,

Timing of the business cycle is not predictable, but its phases seem to be. Many economists site four phases—prosperity, liquidation, depression, and recovery. During a period of prosperity, a rise in production leads to increases in employment, wages, and profits. Obstacles then begin to obstruct further expansion. Production costs can increase, helping create a rise in prices, and

When looking at demand, a business must consider what is influencing this demand. The business buyer behavior model relating to the influence can be seen in Figure 2 in the Appendix. In a few ways, both B2B and B2C markets are similar in influence however the main difference is seen in the buying unit, the types of decisions made and the decision process (Kotler, 2012, p. 192). In the B2B environment, one can see that the marketing mix, which will be discussed later on, and also other stimuli under the name PESTLE affect the business market. The PESTLE stimuli can be referred to as the political, economical, social/cultural, technological, legal/competitive, and the environmental, where each of these aspects affect the market in one way or another.

This requires management of both monetary and fiscal policies, which can be examined in terms of the way that they have the aims of creating a stable economic environment which will facilitate growth and the way that the policies manage, and are seen to manage all economic

Most companies are profit oriented. Companies survive and live on profit. Even governmental institutions, NGO's and NPO's are profit oriented, what they do with profit is different though. Saying this means that companies seek always to be at a position where profit is maximized. As we know by now this happens when MC=MR but this is an always changing point as supply and demand are dynamic, effectively meaning that if firms get it right once they can't just do the same eternally, they still need to adapt to every market factor as a new change is a new reality all together that needs to be studied and addressed. All