Business Recommendations Based on Economic Predictions

The current macroeconomic environment presents several challenges for Larson. Larson must consider whether to enter new markets or develop specialized products. Tightening in the credit markets may limit access to capital, requiring Larson to finance entry into markets with internal funds. One option available to Larson include specializing in green technology products such as developing batteries for hybrid vehicles, which could be funded through government credits. Larson needs to determine a market specialization approach that builds a stable future for the company.
Business Decisions Based on Credit Markets
Due to the current recession, market stability experienced by Larson Inc. is very low.   An important note to consider is that the market is at the trough of the business cycle; upcoming expansion is bound to happen.   Until that time, Larson must use the best of their resources provided by macroeconomic policies intending to curtail the full effects of a recession, such as lowering interest rates ( McConnell, Brue & Flynn 2009).   It is likely that during this low point in markets, Larson has acquired more debt than normal operation levels would require outside of a recession.   Once credit markets have loosened and they have access to more capital and resources, it is important that they maintain a certain level of liquidity and solvency.  
As previously noted, Larson must look at their internal operations to make certain their revenues increase large enough to regain their health financially.   This can be accomplished wholly by investing in new marketing strategies, increased working capital, technological advancement in new products, and more cost-effective production.   Larson must dedicate the company‚Äôs direction to and reintegrate the idea that they must advance in all forms of their business if they plan to stay competitive in the battery market.   It is also important for Larson to plan ahead to future market conditions, because if they are...