A manager needs to develop an early warning system that includes: -Warning signals (macroeconomics) -Critical costs -Customer sale forecasts -End User information
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. |
A warning system that utilizes macroeconomics to insure a company is prepared for recession.
The “final” step in a products journey, understanding end users are different than understanding your customer profile, as the initial consumer may not be the end user
This tracks a product’s life, who its being consumed by, where it ends up, how much is a fair market price. All these factors among others are used to make forecasts on products value.
Cost is extremely important to track as some products’ cost is more volatile than others. Cost can be one of the main factors in a company’s warning system.
To achieve success a business needs to develop an accurate warning system to protect the longetevity of their business.
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.
An adjustment to your system in which items whose values normally and regular fluctuate are adjusted for.
Describe the characteristics of the following events briefly.