Indiana Institute of Technology Module 1 Microeconomic and Macroeconomic Factors Discussion

Description

Review all classmates’ posts, and choose two to comment on. Try to select classmates who do not yet have feedback so that everyone receives feedback.

In your response to each classmate, please answer the following questions: 

What other microeconomic and macroeconomic factors not mentioned in the post may influence the company and its business operations?

Which factors will have immediate influence on the business operations vs. more longer-term effects?
How could the firm’s managers “identify assets in low-valued uses and device ways to profitably move them to higher-values uses?” (Froeb et al, 2018)

Note: Be sure to refer to the Discussion Board General Information – Requirements and Guidelines (posted in Module 1 Activities and Assessments folder) to guide your discussion responses.

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Post 1
Module # 1 Discussion A. A.A
COLLAPSE
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Choose a company to use for this discussion. The company can be a U.S. firm, or a firm from any
country that is easily researchable using Internet search engines.
• Dell Inc.
Identify the name of the firm, and provide a brief description of the goods and/or services that the
firm produces.
• Dell is an American multimational computer technology company that develops, sells,
repairs, and supports computers and related products and services. Dell also focuses on Data
storage, information security, virtualization, analytics, cloud computing and other related
products and services with acquisition of EMC
Using the web, identify recent news about the company related to the company’s business
operations, market share, or overall profitability
• Dell decides to spun out VMWare and grant special dividend to share holders
• Dell provides long term guidance and share repurchase program
• Dell’s EPS is at $4.84 and has a market cap of $85.41B
Report the news in your own words.
• Dell has recently decided to spun off VMWare (data storage arm) which it got into market
with acquisition of EMC. Some analyst think if this is structured correctly, it could potentially
unlock greater value for Dell Technologies (parent organization of Dell Inc.) shareholders
Explain how that news relates to the company’s business operations, and what that information
means for the company’s managers.
• The latest news of VMWare spun off by Dell could trigger a restructure in the organization
which could be of greater focus for market watchers and pressure to perform for company
managers
Describe the company’s business model (i.e. how it makes money).
• Dell Technologies have various segments; it’s PC & Business Machines segment
manufactures and sells desktop, laptops, 2 in 1 products along with mobility products in the
open market at retail stores. Dell also provides services for data storage and Information
security for businesses which is now bigger contributor of there revenue
How does the company create (a) value for its consumers, and (b) wealth for its shareholders?
• Dell creates value for it’s consumers by having competitive pricing, quality products and
superior services
• Dell creates wealth for it’s shareholders by improving YoY financial metrics (Revenue,
EBITDA) and keeping Operating Expense in check
Explain what (a) microeconomic and (b) macroeconomic factors influence the company’s value
creation and wealth creation.
• Some microeconomic factors impacting the company’s value and wealth creation are the
competition it has with other players in the PC and Services market
• Some macroeconomic factors impacting the company’s value and wealth creation are tied to
the reliance on global procurement (shortage of chips) which has significantly impacted it’s
production
Post 2
Discussion Module 1A. L.L
COLLAPSE
McDonald’s Corporation
1.
Choose a company to use for this discussion. The company can be a U.S. firm, or a firm from any
country that is easily researchable using Internet search engines.
For this discussion, I will be talking about McDonalds.
1.
Identify the name of the firm, and provide a brief description of the goods and/or services that the
firm produces.
The name of the firm is McDonald’s Corporation. McDonalds is a well know restaurant chain around the
world. It was first founded in 1940 by brothers Maurice and Richard McDonald in San Bernardino, California.
McDonalds was designed to produce high quality foods at low prices.
1.
Using the web, identify recent news about the company related to the company’s business
operations, market share, or overall profitability.
1. Report the news in your own words.
McDonald’s is facing a shortage of workers in Medford, Oregon. They had to result in hiring 14 and 15 year
olds. During the first two weeks of opening the job up to adolescences, there was over 25 applications. The
manager is pleased by the work these 14 and 15 year olds are doing.
1.
Explain how that news relates to the company’s business operations, and what that
information means for the company’s managers.
This news pertains to the business operations because it is how the company makes their food. Having
adolescences doing the job may impact the productivity and the quality of the products. This information
means that managers need to have patience with these adolescences and teach them the proper way of
operations.
1. Describe the company’s business model (i.e. how it makes money).
McDonald’s makes its money every day through its restaurant chain. They sell an assortment of items that
range from breakfast to dinner. Some McDonalds even stays open for 24 hours. Allowing for customers to
have the ability to come get food whenever. McDonald’s also has a merchandise that you can buy.
1. How does the company create (a) value for its consumers, and (b) wealth for its shareholders?
McDonald’s creates value for its consumers in a few ways. The main way they provide value is through their
fast and efficient food services. The next area they provide value is through their consistent quality of items
on the menu. They also provide value by having specific products, such as the Quarter Pounder. Finally, they
offer value through their pricing and deals they offer.
McDonald’s creates wealth for its shareholders in a few ways. The main way it provides wealth is by releasing
new products. Another way it provides wealth is by meeting its quarterly numbers.
1.
Explain what (a) microeconomic and (b) macroeconomic factors influence the company’s value
creation and wealth creation.
A few microeconomic factors that could influence McDonald’s value and wealth creation are the rise in
building materials. This could cause a halt on further productions of McDonald’s. Meaning that there will be
less places for consumers to go and buy their product. Ultimately, this would result in less profitability.
A few macroeconomic factors that could influence McDonald’s value and wealth creation are in the shortage
of workers due to the pandemic. All over the world there is a mass pandemic that is causing business to shut
down due to the lack of workers. McDonald’s is part of the pack. McDonald’s hasn’t had to shut down due to
the pandemic. McDonald’s has lost quite a few of their employees due to the pandemic. This is affecting their
ability to be efficient in their work.
https://www.independent.co.uk/news/world/americas/mcdonalds-hiring-children-staff-shortageb1913699.html
https://www.britannica.com/topic/McDonalds
https://www.mcdonalds.com/us/en-us/about-us/our-history.html

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business management

Microeconomic

macroeconomic

Management Strategies

Business and Finance

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