The Impact of Macroeconomic Indicators on Operations and Planning

2. Economic: “Our business and financial performance may be adversely impacted by current and future economic conditions” (Page 10.)

An economic indicator is defined by Investopidea.com (n.d.) as “A piece of economic data, usually of macroeconomic scale, that is used by investors to interpret current or future investment possibilities and judge the overall health of an economy”. Below are six economic indicators that affect Apple Inc. and its business decisions and strategies.

innovative products but functional products because it offers great variety and low profit margins. In

1. Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis.

Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, by expenditure category, 2013).

1. If an economy produces final output worth $5 trillion, then the amount of gross

To effectively analyze these variables, you will need to conduct significant research and relate your findings in your report. It may be feasible to ask what economic conditions are affecting the organization today, and what the outlook is, based on your assessment.

Consumer Price Index, is a measure of the overall cost of goods and services bought by a typical consumer. A 10% increase in chicken will have a greater affect on the CPI because more people typically by chicken than those who buy caviar.

P1 – Explain the effects of changes in the economic environment on a selected business.

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

determined by world prices. In Bloch and Sapsford (2000) the price of manufactures, which is

1. Economic Environment – An organisation needs to consider what money is available to spend and this will depend on the current climate at the

A key aspect of economics is the collection and analysis of the vast amounts of data generated throughout global economies. The interpretation of this data can provide important signals for the future direction of the economy. There are two forms of signals that arise from the various economic data that is collected. The first are direct signals, which measure the movement in what is being measured. These usually take the form of a given macro indicator.

In today's world, no business operates in isolation without interacting with the environment where it operates. Irrespective of the nature of business whether public or private organization; manufacturing; service industry; local or international firm, its operations are inhibited by the environment in which it operates.

2. Environmental monitoring. Examining the macro, industrial, competitive, and internal environments will produce the reasoning and ongoing analysis as to why this plan will support the senior leaders and new employees achieve their best performance.