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This paper discusses three alternative economic futures for Big Drive Auto that could occur over the next five years and includes updated recommendations based on Big Drive Auto's possible economic futures. The paper is a proposal for an appropriate course of action based on the projected economy's stage in the business cycle and macroeconomic conditions. The three most likely economic scenarios, the writer argues, include continued economic stability, an economic downturn, or an economic upturn. In the conclusion of the the essay, recommendations for Big Drive Auto, based on the analysis, are provided.
From the Paper:"According to the Big Drive Auto Scenario (University of Phoenix, 2009) historically the organization has been economically stable experiencing an increase in revenue over the past 10 years. Initially, Big Drive Auto's products rose and fell in the first five years, but have since continued to remain stable or seen increases.
"Several factors will have a direct impact on the economic future of Big Drive Auto including macroeconomic challenges such as the general health and cycle of the economy, automobile industry sales, production levels, consumer spending, interest rates, and confidence in the economy (McConnell et al., 2009). According to McConnell, Brue, and Flynn (2009) the primary measure of the economy's performance is determined by the gross domestic product (GDP). Real GDP is defined as the output of goods and services produced by labor and property in the United States (Bureau of Economic Analysis, 2009). The Bureau of Economic Analysis (2009) states that since 2007 the U.S. automotive industry has experienced a drastic downturn in manufacturing due to sharp declines in sales that led to excessive inventories and significant labor reductions resulting in reduced profits that sparked an industry-wide crisis. According to Vlasic and Bunkley (2008) the industry crisis is a part of a global recession affecting not just U.S. automotive manufacturers. McConnell, Brue, & Flynn, (2009) confirm this, stating that a recession is a period of decline in total output, income, and employment."
Sample of Sources Used:
- Bureau of Economic Analysis.(2009). Retrieved November 27, 2009 From http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
- Bureau of Labor Statistics, (2009). Economic News Release. Retrieved from http://www.bls.gov/news.release/empsit.nr0.htm
- Frost and Sullivan, (2009). Global Automotive Industry Outlook 2009: Impact of Economic Slowdown on the Future of Auto Sales and Production.. Retrieved on November 27, 2009 from http://www.researchandmarkets.com/reportinfo.asp?report_id=%201082790
- McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw-Hill Irwin.
- United States Department of Labor. (2009). U.S. labor market in 2008: economy in recession. Retrieved from http://www.bls.gov/opub/mlr/2009/03/art1full.pdf
Cite this Case Study:
Business Recommendations Based on Economic Projections (2012, March 19) Retrieved March 06, 2021, from https://www.academon.com/case-study/business-recommendations-based-on-economic-projections-150599/
"Business Recommendations Based on Economic Projections" 19 March 2012. Web. 06 March. 2021. <https://www.academon.com/case-study/business-recommendations-based-on-economic-projections-150599/>