This document discusses how macroeconomic factors have strategic and tactical implications for business decision making across all areas of a firm. It notes that events happening globally can impact both the global economic environment and thousands of corporations worldwide. Specifically, it outlines how proactively managing business cycles, applying instruments to hedge macroeconomic risks, and crafting responses to random economic shocks can help build competitive advantages. The document also provides a brief definition of macroeconomics as dealing with aggregate economic indicators like total output, employment, saving, investment, and general price levels.
This document discusses how macroeconomic factors have strategic and tactical implications for business decision making across all areas of a firm. It notes that events happening globally can impact both the global economic environment and thousands of corporations worldwide. Specifically, it outlines how proactively managing business cycles, applying instruments to hedge macroeconomic risks, and crafting responses to random economic shocks can help build competitive advantages. The document also provides a brief definition of macroeconomics as dealing with aggregate economic indicators like total output, employment, saving, investment, and general price levels.
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This document discusses how macroeconomic factors have strategic and tactical implications for business decision making across all areas of a firm. It notes that events happening globally can impact both the global economic environment and thousands of corporations worldwide. Specifically, it outlines how proactively managing business cycles, applying instruments to hedge macroeconomic risks, and crafting responses to random economic shocks can help build competitive advantages. The document also provides a brief definition of macroeconomics as dealing with aggregate economic indicators like total output, employment, saving, investment, and general price levels.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
for Business decision making across all functional areas of the firm. 1) Banks stop lending to Oil Companies: Business Standard 10th October 2008.
2) Government rules out FDI in general
retail: Business Standard 10th October 2008. 3) Advance Tax shows banking slowdown: Business Standard 10th October 2008
4) More measures in works to infuse
liquidity: FM–Economic Times 14th October. Each event some thousands of miles away, will have an impact first on global economic environment, and ultimately on the course of business cycle and thousands of corporations around the globe: Global economic and political environment. Global social and cultural environment Global technological environment Global regulatory, Tax & Legal environment. The proactive management of business cycle movements and turning points to build competitive advantage.
The more timely and tactical application of various
instruments to hedge macroeconomic risk associated with changes in exchange rates, interest rate, Oil price shocks etc.
Crafting appropriate strategic and tactical
responses to random macro economic shocks associated with phenomena ranging from war and terrorism to currency crises, drought, and so on. Macro Economics deals with aggregate economic activity.
Total volume of output
Employment levels Saving Investment General price level What is true of the part is not necessarily true of the whole Society