Larson Business Recommendations
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Business Recommendations for Larson, Inc.
Larson, Inc. is a manufacturer of batteries for anything from laptops to toys. Larson is currently facing an uncertainty in the future economic environment. To complicate matters, because the company has operations in the United States and Germany there is a chance that the economic conditions in each country will be different (University of Phoenix, 2010). This will mean that Larson will have to make decisions independently for each of its operations based on the economy in each country.
Alternative Economic Futures
In the milestone one paper written by team D it was determined that the most likely economic future was a recovery in both countries. This determination was based on the examination of economic indicators in both countries including the unemployment rates, inflation, GDP, the federal funds rate, and the discount rate.
The team has now been asked to make recommendations for three alternative economic futures. The three alternative economic futures that were chosen are the economies in each country move in different directions, there is a double dip recession in either or both countries, and because of over stimulus there is an economic recovery followed by high inflation. These three alternatives were chosen based on the belief that they are the most likely scenarios. The following discussion will address each scenario assuming that each of Larson’s operations will make decisions based on the economic environment in the country that it operates. We will therefore discuss how each of the operations should respond to economic recovery, a double dip recession, and high inflation.
Economic Recovery
Looking at the current unemployment rates, the GDP figures, and the inflation rates for both Germany and the Unites States, it appears that both countries are currently in the expansion stage of the business cycle (McConnell, Brue, & Flynn, 2009).
In both the United States and...
Larson, Inc. is a manufacturer of batteries for anything from laptops to toys. Larson is currently facing an uncertainty in the future economic environment. To complicate matters, because the company has operations in the United States and Germany there is a chance that the economic conditions in each country will be different (University of Phoenix, 2010). This will mean that Larson will have to make decisions independently for each of its operations based on the economy in each country.
Alternative Economic Futures
In the milestone one paper written by team D it was determined that the most likely economic future was a recovery in both countries. This determination was based on the examination of economic indicators in both countries including the unemployment rates, inflation, GDP, the federal funds rate, and the discount rate.
The team has now been asked to make recommendations for three alternative economic futures. The three alternative economic futures that were chosen are the economies in each country move in different directions, there is a double dip recession in either or both countries, and because of over stimulus there is an economic recovery followed by high inflation. These three alternatives were chosen based on the belief that they are the most likely scenarios. The following discussion will address each scenario assuming that each of Larson’s operations will make decisions based on the economic environment in the country that it operates. We will therefore discuss how each of the operations should respond to economic recovery, a double dip recession, and high inflation.
Economic Recovery
Looking at the current unemployment rates, the GDP figures, and the inflation rates for both Germany and the Unites States, it appears that both countries are currently in the expansion stage of the business cycle (McConnell, Brue, & Flynn, 2009).
In both the United States and...