Walmart Economic Analysis Paper
Wal-Mart
By Melaney Cooper
For GB 550: Economics for Global Decision Makers
Taught by: Professor Ayanou
Economic Indicators for Wal-Mart Organizational success in today’s market requires many different elements. One being able to respond to changes in the business environment. Economic indicators are what is used to indicate how the economy is doing. The Economics and Statistics Administration (ESA) releases 12 monthly and quarterly Principal Federal Economic Indicators collected by its constituent bureaus: the U.S. Census Bureau and the Bureau of Economic Analysis (BEA) (ESA Unknown). These indicators provide data about how consumers are financially spending their money. For Wal-Mart …show more content…
Evaluating manufacturing activity informs that there is an increase in demand. Meaning that people are spending money and that is boosting the economy. This also indicates that people are working and possible getting hired and people are getting paid more. Manufacturing data coincides with retail sales. This is because items can be getting produced and not selling. Signs of a boost in the economy must show an increase in both manufacturing and retail sales. This is an important fact to Wal-Mart because they have production companies for the products in which they sale. In turn depending on the levels of production that affects the prices Wal-Mart is in turn going to sell these products for. To maximize revenue in the future Wal-Mart must be prepared to deal with the rises and falls of manufacturing activities and possibly attain price lock in contracts with their various producers promising work for them without having to deal with the price …show more content…
This is because the unemployment rate will affect sales. If the unemployment rate is high, consumers will have less to spend. This affects the housing market, stocks, the GDP and most important to Wal-Mart retail stores. If there is a high unemployment rate Wal-Mart could respond by creating jobs for the economy. Even it’s hiring a specific amount of people for part time jobs, it will ultimately boost sales for the company in one way or another while simultaneously boosting the economy. Hiring people now will help maximize revenues in the years to come. Since Wal-Mart is such a massive organization it is nearly impossible to avoid spending with the company. The workers they hire will most likely be shoppers of
By Melaney Cooper
For GB 550: Economics for Global Decision Makers
Taught by: Professor Ayanou
Economic Indicators for Wal-Mart Organizational success in today’s market requires many different elements. One being able to respond to changes in the business environment. Economic indicators are what is used to indicate how the economy is doing. The Economics and Statistics Administration (ESA) releases 12 monthly and quarterly Principal Federal Economic Indicators collected by its constituent bureaus: the U.S. Census Bureau and the Bureau of Economic Analysis (BEA) (ESA Unknown). These indicators provide data about how consumers are financially spending their money. For Wal-Mart …show more content…
Evaluating manufacturing activity informs that there is an increase in demand. Meaning that people are spending money and that is boosting the economy. This also indicates that people are working and possible getting hired and people are getting paid more. Manufacturing data coincides with retail sales. This is because items can be getting produced and not selling. Signs of a boost in the economy must show an increase in both manufacturing and retail sales. This is an important fact to Wal-Mart because they have production companies for the products in which they sale. In turn depending on the levels of production that affects the prices Wal-Mart is in turn going to sell these products for. To maximize revenue in the future Wal-Mart must be prepared to deal with the rises and falls of manufacturing activities and possibly attain price lock in contracts with their various producers promising work for them without having to deal with the price …show more content…
This is because the unemployment rate will affect sales. If the unemployment rate is high, consumers will have less to spend. This affects the housing market, stocks, the GDP and most important to Wal-Mart retail stores. If there is a high unemployment rate Wal-Mart could respond by creating jobs for the economy. Even it’s hiring a specific amount of people for part time jobs, it will ultimately boost sales for the company in one way or another while simultaneously boosting the economy. Hiring people now will help maximize revenues in the years to come. Since Wal-Mart is such a massive organization it is nearly impossible to avoid spending with the company. The workers they hire will most likely be shoppers of