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Bus 602 Final

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Submitted By TOMBOYCHIC
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Question 1.
In 250 words, what role do the measurements of unemployment and inflation have on the management of an organization?
Question 2.
In 250 words, what analyses might a manager do to learn more about a specific company or industry? Please provide at least three examples.
Question 3.
In 250 words, what role does trade have, in relation to how an organization develops its strategic plans?
1. What role do the measurements of unemployment and inflation have on the management of an organization?
Measurements of unemployment and inflation tells an organization what it should be doing to strategically price their products, and also acts as a means to control costs. The unemployment and inflation rates also indicate to an organization if they should consider increasing or decreasing hourly wage rates in an attempt to attract new employees. By evaluating the unemployment and inflation information in the current market, the company can also decide if whether or not the company should be acting to cut costs while remaining to compete effectively in an attempt to retain the skilled help currently employed. The inflation rates also can help a company determine if it appears, by analysis, that costs are going to continue to rise due to inflation, or if a reduction is in the near future, which will bring costs back down under control. There are two ways to measure inflation. The first is the Consumer Price Index, which is a measure of price changes in consumer’s goods such as gas, food, clothing, etc. The second is the Producer Price Index which is a family of indexes that measure the average change over time in selling prices by domestic producers of goods and services. http://www.investopedia.com/university/inflation/inflation2.asp The government measures unemployment by anyone that is unemployed and actively looking and available for work. Management of an

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