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Business Recommendations Based on Economic Projections

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Business Recommendations Based on Economic Projections

The economic future of an industry may change depending on various economic conditions. Predicting economic futures is an essential skill when choosing between business alternatives. Many factors play a role projections and forecasting. Larson Inc. is an international company that has operated in America for 5 years and in Germany for over 15 years. The company supplies batteries for electronic equipment. Batteries are sold for anything from laptops to toys. The company has always maintained a decentralized structure regarding decisions in the areas of marketing, pricing, and trade. After reviewing the profitability of both the American and Germany divisions, profits were much lower than expected and the company decided that decisions of high magnitude should be reviewed and approved

through the corporate office (Phoenix, 2010). There are many forms of pricing strategy, barriers to entry, and ways to differentiate the products that Larson, Inc. manufactures and through out this segment will uncover valid evidence that supports each recommendation.

Pricing Recommendations

V Shaped Recession:

In this scenario, an economy falls into a sharp recession but quickly recovers. A V-shaped recession is "sharp and quick". In order for a business like Larson to sustain itself their primary motive should be profitability. A V-shaped recession can hinder Larson;s ability to be profitable because the higher ups might be encouraged by the fast rate of recovery and get ahead of themselves, increase spending to stimulate the consumer, and suffer when the market finds itself contracting again. Larson, Inc. must alter its current business strategy to address unique market conditions associated with the V" shaped recession recovery. Larson should heavily consider implementing...

Based on Milestone 1, there are numerous issues that BDA has to improve on in order to produce maximum efficiency. In the current times, BDA has been performing well and so far their revenue is in an increasing pattern. On the other hand, there can be numerous economic outcomes in the future. In Milestone 2, we will look at three alternative economic futures that BDA might encounter. The economy is very unpredictable and it's difficult to determine what the future may look like. Economists forecast the economic future by researching and looking at economic trends. In BDA's case, Team C has come up of three economic futures that may come up in the next five years: stagnant or slow growth, with relatively high unemployment and low inflation; moderate growth, with employment gains, and moderate inflation;

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