...------------------------------------------------- Post–World War II economic expansion From Wikipedia, the free encyclopedia "Golden Age of capitalism" redirects here. Other periods this term may refer to are Gilded Age and Belle Époque. In the United States and several other countries, the boom was manifested insuburban development and urban sprawl, aided by automobile ownership. Many Western governments funded large infrastructure projects during this period. Here the redevelopment of Norrmalm and theStockholm Metro, Sweden. The post–World War II economic expansion, also known as the postwar economic boom, the long boom, and the Golden Age of Capitalism, was a period of economic prosperity in the mid-20th century which occurred, following the end of World War II in 1945, and lasted until the early 1970s. It ended with the collapse of the Bretton Woods system in 1971, the 1973 oil crisis, and the 1973–1974 stock market crash, which led to the 1970s recession. Narrowly defined, the period spanned from 1945 to 1952, with overall growth lasting well until 1971, though there are some debates on dating the period, and booms in individual countries differed, some starting as early as 1945, and overlapping the rise of the East Asian economies into the 1980s or 1990s. During this time there was high worldwide economic growth; Western European and East Asian countries in particular experienced unusually high and sustained growth, together with full employment. Contrary to early...
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...78243 Dear Mr. McVicker, This document contains the report that you requested in September. I have provided pertinent information and made recommendations on the plan of action to expand McVicker Aluminum, Inc. to the Kingdom of Bahrain. My analysis of the expansion into Bahrain covered four important areas that will help you decide whether or not McVicker Aluminum, Inc. should expand and build an aluminum plant in the Kingdom of Bahrain. I took an extensive look at the current political condition, the current economical condition, the current business condition, and the cultural aspects of working in a Muslim country. I strongly believe that McVicker Aluminum, Inc. can be a successful business in Bahrain. I used several resources to create this report. The most helpful resources were the Bahrain Economic Quarterly June 2014, the book by Philip Dew, Bahrain's Business Environment, and Department of Defense Bahrain Country Handbook. Thank you for choosing me to conduct the research into the Kingdom of Bahrain. If you have any further questions about the research or recommendations please contact me (michael.s.gordon.mil@mail.mil) and I will be happy to answer any questions referring to the possible expansion into Bahrain. Sincerely, Michael S. Gordon Research Analyst Aluminum Shining Bright McVicker Aluminum, Inc. Expanding to Bahrain Executive Summary To continue growth and remain competitive on a global scale, McVicker Aluminum, Inc. should...
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...with specifics about Verizon Wireless network, which is vital in this technological savvy industry. In this business proposal, the author will identify the market structure for Verizon Wireless network, identify elasticity of the product, and discuss how pricing will relate to the Network as a whole. The author will also discuss how changes in the quantity supplied as a result of pricing decisions affect marginal cost and marginal revenue, suggest some nonpricing strategies that Verizon will use to increase barriers to entry, and how the changes in operations may alter the mix of fixed and variable costs. And finally, the author will go in depth about the current global economic conditions and their effect on local macroeconomic indicators for Verizon, the local economy's stage in the business cycle, and describe how current credit market conditions affect the planning or operating decision for Verizon Wireless. Optimistically after reading this business proposal, the audience will have a better understanding on how important it is, to apply...
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...Assignment 5 Valerie Lagana Strayer University Eco550 – Economics for Managers September 5, 2011 Question: Describe the changing economic variables in China that influenced McDonald’s expansion strategies. The main changing economic variables in China that influenced McDonald’s Expansion were the increase in GDP and the economic stimulus package. In 2007, the increase in GDP showed a level of strong jobs in China as well as increase income for the Chinese (Farnham, 2010). This allowed the Chinese to spend more money on eating out at restaurants which gave McDonald’s a great opportunity for expansion. In addition, the Chinese government had a stimulus package after the economy dropped in 2008. The stimulus package included building more highways which allowed the Chinese to be accessible to the drive through window opportunity that McDonalds was able to offer as part of their expansion. Question: What factors led to the Mexican currency crisis and peso devaluation in 1994? The factors that led to the Mexican currency crisis and peso devaluation were the Appreciation of the exchange rate, falling interest rates, and the foreign savings. The appreciation of the exchange rate resulted in a decrease in savings with an increase in investment due to the expansion of credit without any federal regulations (Farnham, 2010). The falling interest rates were a result of the appreciation of the exchange rate attracting private capital via privatization of banks and...
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...All economies in the world operate in cycles of expansion and recession. Additionally, the world as a whole is an economy the runs in a cycle. Factors such as gross domestic product (GDP), interest rates, levels of employment and consumer spending can help to determine the current stage of the economic cycle. For the United States, the current part of the cycle of the economy is recovery. Recovery is the time when unemployment is going down and GDP is going up. Additionally, recovery is the early stage of expansion. Economic expansion is when the GDP begins to rapidly increase. It is during times of expansion the people tend to invest in new technology and capital goods. Economic indicators used to show that the U.S. in the early stages of expansion includes the inflation rate, unemployment rate, real GDP, and the federal funds rate. On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers rose 0.3 percent in March after rising 0.4 percent in February. The index for all items less food and energy rose 0.2 percent in March after increasing 0.1 percent in February. U.S. payroll employment rose by 115,000 in April and the unemployment rate has held steady at 8.1%. Employment increased in professional and business services, retail trade, and health care, but has declined in transportation and warehousing. This being said, the unemployment is still down from the 12% it was in May of 2010. Real GDP increased at an annual rate of 2.2 percent in the first...
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...is Greggs PLC. It analyzes the company’s latest performance in defying the economic downturn achieving a very successful term. It considers, using SWOT and PESTEL to analyze the company’s plans for international expansion. It will also discuss Greggs’ Chief executive, Ken McMeikan in managing the company activities and dealing with the company’ stakeholder. I. Introduction Greggs, which is also owns Bakers Oven, is the leading bakery retailer in the UK, with some 1,400 retail outlets throughout the country. It was founded by John Gregg in the 1930s, when he opened a small bakery store in Newcastle. Now, the company is managed by Ken McMeikan, who took charge of the business following Ian Gregg. The company has 1,400 shops around the UK with 19,000 employees and 6 million customers and plans to add 600 new shops in the next few years. This report will analyze Greggs’ situation and its performance as well as their strategy in defining the external environment which has led the company to achieve its success. II. Company’ performance and management style 1. Greggs’ Latest performance Based on its interim results for the 26 weeks ended 27 June 2009 (www.greggs.co.uk), during the economic decline their sales went up to 4.4 per cent to £312 million and the operating profits up to 8.9 per cent to £16.3 million. These figures prove that Greggs are able to survive and make a profit even in the current climate (www.greggs.co.uk). In doing so, the company is adjusting their prices...
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...Current State of the Economy Our economy has been in a recession for the past few years, but looking into the key indicators for our economy one can see that small glimmer of light shining from the end of the tunnel. The key indicators as mentioned above include: the current Gross Domestic Product (GDP), whether the economy is expanding or contracting, the unemployment rates, the credit card rates, the U.S. Prime Rate, and inflation. These key indicators may give one that glimpse of hope that maybe; just maybe our economy is gaining better ground. Gross Domestic Product (GDP) To have a full understanding of our expanding economy one must first understand the Gross Domestic Product (GDP). The GDP is one of numerous national income and output measures. The GDP represents 24.35 percent of the world economy; this is reported by The World Bank Group. As of 2011 the National GDP was found to be worth 15094 billion US dollars. There are three ways to define the GDP and gain identical results (Trading Economics, 2012). Defines the GDP First, the GDP, within a specified period of time, will be equal to the total of goods and services produced. Second, the GDP will be equal to the sum of the value of production. Third, the GDP is equal to the sum of the income generated by production (Trading Economics, 2012). Expansion Our economy is currently expanding but has yet to be found in recovery mode. When the level of GDP lies below the peak of the previous expansions is when...
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...Abercrombie and Fitch: International expansion external and internal analysis Name Here Business Mgmt Name Here Date Here Executive Summary This case study was identified to examine why international sales volume of Abercrombie and Fitch have increased over the past three years and to recommend further international expansion to increase sales volume. The research draws attention to the fact that in 2009, the US stores generated 81.2% of Abercrombie and Fitch’s net sales. The shares of international stores and direct-to-consumer net sales were very small in comparison. Over the next two years the US stores decreased net sales percentages while net sales increased. Further investigation reveal that the US market shrinkage in terms of overall company net sales percentage coincided with the increase in international sales and direct-to-consumer sales and the overall company net sales percentage over the same time period. Since the economic downturn in the US economy in 2008 the disposable income for Abercrombie and Fitch clients appeared to decrease. Additionally individuals were utilizing disposable income for other items such as technology, cell phones and other gadgets. These two items appeared to be the major causes of the decreased company percentage in net sales of Abercrombie and Fitch in the US. During the same two year period the international stores and direct-to-consumer net sales increased dramatically. This was an increase of 342% for international...
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...Larson Inc. must consider the alternative economic futures for their industry. In any market, economic conditions will change over time. The company must be able to adapt and change with the economy to remain successful. The company needs to find solutions for the changing economy to keep increasing their revenue and decreasing their costs. The economy may go through a recession, expansion and peaks over their years in business. Larson, Inc. needs to analyze the difference scenarios and determine the best course of action for each type of economic future. Also, the company must consider the economy’s stage in the business cycle to make well-informed decisions. Economic projections The business cycle will have continual change and fluctuate over time. History has shown us how the economy goes through peaks, recessions, troughs, and expansion. It is important for all businesses to understand the concepts of macroeconomics and how the business cycle is affected. Larson, Inc. can plan for the changes to remain successful and innovative. The business cycle is determined by the changes in GDP or gross domestic product. The change in the GDP can occur from economic reasons such as changes in demand, taxes and interest rates. It can also change from non-economic reasons such as war or natural disasters. The company must be aware and analyze the different indicators of the changing economy. The recession, in which Larson Inc. is currently experiencing, is a normal...
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...International Expansion Report Tesla Motors, Inc. November 21, 2011 Rio Consulting Group Michael Dawes James Hadel Daniel Ma Simon Qin International Expansion Report | Tesla Motors, Incorporated | Rio Consulting Group Executive Summary Founded in 2003, Tesla strives to design, develop, manufacture and sell high-performance fully electric vehicles and advanced electric vehicle powertrain components. Currently, Tesla’s presence internationally is limited to dealerships in Europe and a minor production plant in Britain. In order to be best positioned moving forward, we recommend expanding into Latin America and Asia Pacific to better fulfill CEO Elon Musk’s primary goal to commercialize electric vehicles all the way to mass market. As we predict slow growth for the standard auto industry, we believe the electric vehicle industry is extremely attractive for several reasons, including high oil prices, less greenhouse gas emissions and government incentives. Our best estimates suggest the electric vehicle industry will have average growth rates of 35 – 40% over the next 10 years. International expansion, if done correctly, can help improve upon Tesla’s current strategic position in order to become the global leader in electric vehicles. We have determined that the optimal points of entry for the market are in Brazil and Singapore. In addition to gained access to the two fastest growing regions in the segment, the two locations are attractive for many political, economic, financial...
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...Table of Contents Executive Summary 3 Issue Identification 4 Slowing Growth in NAFTA Trade 4 Continuation of NAFTA Strategy versus Expansion into Latin America 4 Taking Advantage of Economic Growth in Asia and Emerging Markets 4 Expanding Overseas 4 Environmental & Root Cause Analysis 5 Slowing Growth in NAFTA Trade 5 Continuation of NAFTA Strategy versus Expansion into Latin America 5 Taking Advantage of Economic Growth in Asia and Emerging Markets 5 Expanding Overseas 6 Alternatives and/or Options 6 Slowing Growth in NAFTA Trade 6 Continuation of NAFTA Strategy versus Expansion into Latin America 6 Taking Advantage of Economic Growth in Asia and Emerging Markets 7 Expanding Overseas 7 Recommendations and Implementation 7 Slowing Growth in NAFTA Trade 7 Continuation of NAFTA Strategy versus Expansion into Latin America 7 Taking Advantage of Economic Growth in Asia and Emerging Markets 8 Expanding Overseas 8 Monitor and Control 8 Executive Summary Since Canadian National Railway Company (CN)’s privatization by the Canadian government in November 1995, CN has not stopped growing its sales, profits, cash flow and, as a result, market value. Privatization and deregulation of the rail industry led to some of CN’s success, but CN had to cut costs and increase revenues. Cutting costs meant reducing workforce and closing or selling unprofitable tracks. It also meant investing in more efficient rail equipment and technology. Increasing revenues required focusing...
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...the true state of the economy. Currently, the United States consumes more than it produces monthly; meaning that the country is getting poorer every month. Individuals are not in tune with the events happening on a national level. During this expansion the expectations of the United States were not as hopeful as pervious expansions. Because of the current recession, the gross domestic product or GDP is not as high as past growth. The GDP beginning in 2008 was only 2.5% with a continual growth of 2% annually. This is lower than the previous expansion ending in 2007 that was 4%. This affects individual consumers, public sector spending, military spending, and government spending. (Reddy, 2013) During the Obama administration, recession recovery was slowly on the rise. Consumer spending rose 3.2% but cutback on saving money. Congress also passed a legislation to alter budgets cuts in air traffic control. The effects of this law cut the budget of the Federal Aviation Administration but allowed the company to cut costs in whatever areas necessary. Military spending also decreased since the pervious expansion. It fell 11.5% and reduced payroll raises of Soldiers globally serving the country. (Reddy, 2013) The current unemployment rate in the...
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...2014 GDP Growth Rate During the first quarter of 2014, the United States GDP (Gross Domestic Product) Growth Rate grew only 0.1%. This type of growth makes our economy look worse than it really is performing. There were many different factors that helped hold back the economic growth. One major factor was weather. Weather actually decreased consumption of housing and goods, although it did boost spending on utilities. During 2013, exports to China and business investments on aircraft were very high. A partial pullback in these areas also contributed to an abysmal GDP Growth Rate. The stockpiling of inventories dropped by the extensively as they were moving at unsustainable rates at the end of 2013. U.S. GDP only grew in 2013 at a rate of 1.9%. There are many factors that will only allow slow growth in the GDP. These factors or forces are the following: • Washington’s attempt to cut government spending. • High structural unemployment. • Personal consumption is at 70% of the current GDP. There are a few forces that are worrying analysts about the growth of the United States GDP growth rate. These forces while they will only happen in certain scenarios will also weigh on the GDP growth rate. Below are the forces that and what their effects are on the GDP growth rate. A cutback on the quantitative easing by the Federal Reserve is huge fear of analysts. The cutback will result in higher interest rates on loans and mortgages making getting a loan for individuals...
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...Ryanair – The low fares airline: Whither now? Main Problems Ryanair’s growth rate is affected by macroeconomic factors such as the recession, as seen in 2010 when Ryanair saw a 200% increase in profit and traffic growth, as the low fares became attractive for those suffering from the current climate. Uncertainty still remains regarding the economic climate; problems would arise if it continued, as passengers would reduce spending restricting the company’s passenger volume growth. If the economic climate was to grow, business and leisure passengers may choose to pay more and travel with a full service airline, this could consequently result in demand for low-cost flights to drop. One of the greatest concerns is fuel prices the ability to estimate future costs are limited due to unforeseen natural disasters and conflicts. Rising oil prices have had an impact on Ryanair, in 2008 Ryanair’s profit before tax was £439 million which fell down to £181 million the following year due to an increase in fuel costs by £100 million. As Ryanair’s declaration of ‘no fuel surcharge ever’, and its reliance on low fares limit its capacity to pass on increased fuel prices will inevitable result in low profits or ticket prices will have to rise. Ryanair faces stiff competition in Europe from a number of airlines including, BritishAirways, WizzAir, SkyEurope and EasyJet. In this competitive market airlines will need to adopt new strategies to avoid losing market share. Rivalry among existing...
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...improvement and advancement. The main strength of Dalman and Lei committing to a large scale expansion of Sandwich Blitz, Inc. is that they already have a strong business plan in place that is showing success. By expanding their business outside of the city they are currently in, they are able to garner a larger customer base. With having eight current shops, they could possibly be better off with getting involved with an expansion that will take them out of their current area. Expanding in the same area as they have been currently with a small scale expansion may cut down the amount of customers that visit other established shops. A weakness of Dalman and Lei committing to a large scale expansion of Sandwich Blitz, Inc. is that their current set up is working as it is because they have made their first link of the chain the base for training new employees. With moving to a different area during a larger expansion, it may not be possible for this model to continue working for them as it currently is. One of the main things that keeps this chain successful is the training that each employee receives that allows them to be empowered to make a bad situation right for the customer. Having the training onsite rather than at a main facility may have a negative impact on the way that employees handle customers. The opportunity of Dalman and Lei committing to a large scale expansion of Sandwich Blitz, Inc. is that they know that they have a very successful idea to bank on. ...
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