A manager needs to develop an early warning system that includes:
Managing through the Business Cycle
| Steps | Description |
|---|---|
| macroeconomic warning signals | The early warning system should include indicators for the overall economy and the relevant industry. |
| end-user information | For example, a bottle manufacturer should watch sales of beer and soft drinks. A fabric manufacturer should watch apparel sales. |
| consumer sales forecast | A company should also monitor its own clients. A manager should break out sales reports by product groups, regions, and customers to trace major surprises in sales. |
| critical cost | The companies that need pay the closest attention to costs are usually manufacturers, utilities, and contractors with with significant exposure to one or two raw materials with typically volatile prices. |
Macroeconomic Warnings are used in order to prepare for a potential outcome in the market.It allows business managers to predict market trends, and prepare for the inevitability.
This information tells business managers to be aware of other industry markets that are not your own.The most important markets to watch for you, our markets that are very similar.For example Grappone would also look at different markets like used car parts, and The gas industry.
Consumer sales and forecasts are very important creating a prediction of how your company will do in sales for the upcoming months. Itβs also important to predict future trends in the market.
Costs are Important when creating an early warning system. Any successful business manager will view their costs and determine whether or not there should be changes in the company.
In order to be a successful business manager you must evaluate different market conditions, and perform monthly reviews of your company, and the economic status of your industry, and other industries that may affect yours.
Explan each of the following terms in your own words. The author explains the terms in the textbook. If necessary, you may also Google the term on the Web. Good resources include:
Explain the terms in your own words briefly.
Seasonal adjustments are used to review your company and other companies, and create plans and adjustments that will benefit your industry.
Describe the characteristics of the following events briefly.