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For this Module, think about macro-economic indicators of performance, and how recent changes in these indicators have affected the performance of the Dell Corporation. For example, how does the change in GDP affect the sales, profitability, expansion plans or competitiveness of the corporation. Or, as another example, has the rise in the national rate of unemployment had any affect on your organizations’ operational performance or management decisions?
Below are three examples of what is required for this assignment. The first two are examples of correct approaches and the third is an example of an incorrect approach.
Sample Mini-Analysis (1):
My organization is a beauty shop/spa that caters to middle class women. With the recession and rise of unemployment the shop has had decreased revenue and profit. This has been particularly true of the spa part of the business because that is more of a luxury service than the simple haircut and coloring end of the business.
Notice that the primary focus was on how this macro-economic indicator has affected the business. This is a good example of the approach to take.
Sample Mini-Analysis (2):
I will begin with the Employment Cost Index (ECI) and why it is important to the well being of TLMP. Companies such as TLMP must be able to anticipate inflation and the impact it will have on currency exchanges and how that would impact their international production and trade. The reason ECI is of less importance to TLMP then some of the other indicators, is because it is a lagging indicator. Albeit important, it is not an indicator that will provide advance data that would allow TLMP to make a change in plans to account for an anticipated change in economic policy.
Notice that the above emphasizes the effect the ECI will have on the costs to TMLP and management has to engage in planning if these costs are expected to increase. It also demonstrates that even though ECI is an important index it is limited in its ability for TMLP management to use it because it does not provide the data in time for the company to use it for its planning. This is a good example of the approach to take.
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