This paper presents impacts of business policies on economic growth and gives advices for creating a strategic plan. A strategic plan is used to set business priorities, inform the decisions, and guide the business operations of various organizations. The strategic plan ensures that every member of an organization plays their role in the achievement of a common goal that effectively accommodates the changes in both internal and external business environments. It’s also used as a communication tool to inform all the stakeholders of the business objectives and the action plan for achieving those objectives. To develop an effective business plan, it’s important that all aspects of internal and external business environment are taken into consideration. This is due to the fact that these factors such as inflation, interest rate, the Gross Domestic Product, and trade balance significantly affect the ability of the organization to attain its set objectives according to the business plan.
Monetary policies are used by the government to regulate the value of a country’s currency such that it remains stable at all times. The monetary policy is also concerned with a reduction in the rate of unemployment which significantly affects a country Gross Domestic Product. Therefore, a country that wishes to achieve economic milestones should be in a position to change its monetary policies so as to control important factors such as the rate of inflation. Changing these policies gives the country full control over various nominal variables such as the exchange rate and money supply so as to increase the rate of economic growth especially with regard to imports and exports. As a result, the monetary policies set by a country have consequences on the economic growth of that country.
Table of Contents
1. Introduction
2. The History of Changes in GDP.
3. Impacts of Business policies of Economic growth
4. The Influence of monetary policy.
5. Describe how trade deficits or surpluses can influence the growth of productivity and GDP
6. Discuss the importance of the market for loanable funds and the market for foreign-currency exchange to the achievement of the strategic plan.
7. The achievability of the strategic plan
8. Conclusion
Objective and Core Themes
This paper examines the fundamental relationship between macroeconomic indicators—such as GDP, inflation, and trade balances—and the effective development and implementation of organizational strategic plans. It emphasizes the necessity of aligning internal business strategies with external economic realities to mitigate risks and achieve long-term growth.
- Analysis of historical GDP trends and economic forecasting.
- The role of government fiscal and monetary policies in fostering economic growth.
- Impact of trade deficits and surpluses on productivity and national development.
- Significance of loanable funds and foreign exchange markets in strategic business planning.
Excerpt from the Book
The History of Changes in GDP, Savings, investment, real interest rates, and employment and their forecast in the next five years.
The Gross Domestic Product (GDP) refers to the cumulative measure of economic activities of a nation. Basically, the economic activities are measured on the basis of the total monetary value of exchange products in a country within a certain period of time. To obtain the value of a country’s GDP, a sum of all the consumption, government expenditure, investments, and exports is calculated then the value of imports are subtracted. The economic data of Gross Domestic Product in the United States is release for every quarter of the financial year. This data largely indicates how the economy is doing.
The economy of the United States has grown over the recent years due to the sequential increase in GDP. During the early 1930s, the US economy was ailing after the great depression and the world wars. However, the government has focused on development and trade that has boosted the economy to regain its status despite the economic, social, and political challenges. In a span of the last five years, the country’s GDP has significantly increased compared to the previous years. For instance, the US GDP in the last five years was $16,155 billion. However, the figure increased to $16,663 billion in the year 2013, $17,348 billion in the year 2014, $17,974 billion in the year 2015, and $18, 560 billion in 2016.
Summary of Chapters
Introduction: Provides an overview of how strategic planning functions as a tool for setting business priorities and guiding operations within changing economic environments.
The History of Changes in GDP.: Details the definition of GDP and outlines the historical economic growth of the United States, including forecasts for the coming years.
Impacts of Business policies of Economic growth: Discusses how government fiscal and monetary policies, such as interest rate adjustments and tax reductions, influence economic output.
The Influence of monetary policy.: Examines the role of the government and central banks in regulating currency stability and unemployment to foster long-term growth.
Describe how trade deficits or surpluses can influence the growth of productivity and GDP: Explains how imbalances in international trade affect a nation's economic efficiency and purchasing power.
Discuss the importance of the market for loanable funds and the market for foreign-currency exchange to the achievement of the strategic plan.: Highlights the impact of interest rates and foreign exchange markets on the ability of organizations to finance international operations.
The achievability of the strategic plan: Connects internal corporate strategic goals with external environmental assessments to ensure feasibility.
Conclusion: Summarizes the necessity of integrating economic analysis into strategic planning to prevent business failure and ensure risk mitigation.
Keywords
GDP, Strategic Plan, Monetary Policy, Fiscal Policy, Trade Deficit, Trade Surplus, Loanable Funds, Foreign Exchange, Economic Growth, Inflation, Interest Rates, Purchasing Power, Investment, Market Demand, Business Policy
Frequently Asked Questions
What is the core focus of this research paper?
The paper explores the critical influence of macroeconomic variables on the success of organizational strategic planning, emphasizing how economic conditions dictate the feasibility of business goals.
What are the central thematic areas discussed in the document?
The central themes include GDP trends, the role of government monetary and fiscal policy, international trade dynamics, and the importance of financial markets for business expansion.
What is the primary objective of this work?
The goal is to demonstrate that effective strategic planning requires a comprehensive understanding of external economic factors to ensure organizational objectives are met in a competitive global market.
Which scientific approach is utilized by the author?
The author uses a descriptive and analytical approach, synthesizing economic data and established macro-economic theories to explain the relationship between state-level economic conditions and corporate strategic outcomes.
What topics are covered in the main section?
The main sections cover historical GDP growth, policy impacts on economic development, the mechanics of trade balances, and the strategic importance of understanding interest rate and currency markets.
Which keywords characterize this paper?
Key terms include GDP, Strategic Plan, Monetary Policy, Trade Balance, Loanable Funds, and Economic Growth.
How do trade deficits impact a nation's long-term economic strategy?
Trade deficits may signal economic disturbances that force governments to intervene, potentially affecting the purchasing power and operational efficiency of local businesses that rely on stable international trade conditions.
Why is the market for loanable funds crucial for strategic planning?
This market determines real interest rates, which directly impact the cost of borrowing and capital investment for companies, ultimately affecting the viability of their strategic growth plans.
- Arbeit zitieren
- Washington Mutwiri (Autor:in), 2019, Impacts of business policies on economic growth. Achieving a strategic plan, München, GRIN Verlag, https://www.grin.com/document/504835
