Business Economic Essay Example | Topics and Well Written Essays - 4000 words

Business Economic - Essay Example At a general framework, countries measure growth by developments of its gross domestic product (GDP) and by the per capita real GDP (Colander, 2001). The secular growth rate trend of economy is 2.5 to 3.5% and the fluctuations experienced within this trend are called the business cycles that are either at its peak, through, upturn or downturn state (p. 154). Unemployment refers to number of unemployed persons divided by the total number of workforce. Unemployment, whether structural or cyclical, is most felt during economic recession and conversely felt when there are expansions (p. 154). Global Conditions The Internal Monetary Fund (IMF) pointed that recession caused sluggish recovery which morphed countries in an economic quagmire in the 90s to the mid-2000s although hope for growth is placed at European countries. Analysts professed that there is world economic expansion in an annual rate of 51/4% in early part of 2010 however, increasing unemployment remained challenging. There i s also an evident financial setback too, which caused markets instability that consequentially discouraged entry of more investments while there is evident decline of stocks in the market (p. 16). This prompted the European Central Bank’s Securities Markets Program and its European Stabilization Mechanism to initiate fiscal adjustments. IMF further observed that there is reduction of tail risk when Europe redefined their fiscal policies by undergoing adjustments against market demands. It was perceived that if the basic economic weaknesses persist and economic reform is turtle-paced, growth remains uncertain. Further observations denote that while there is increasing activities to improve tax measures, there is also low investments for real estate and slow residential demands amid increasing prices of houses. IMF professed that the quantitative risk is high as distribution of forecasts for the slope of the yield curve is tilted downwards and another upside risks from financia l forecasts toward the second quarter of 2011 (p 45). Macroeconomic Trends in UK As this develops, UK forecasted that its exports will aid growth in the next term. Financial analysts hope that identified downside risks will not happen; that there will be improvement in investment, employment and on consumption. In the last quarter of 2010, UK has employed labor force at 29.157 million based on a survey (HRM Guide, 2011) which resulted to a growth rate of 2.3% for earnings (HRM Guide, 2011) attributable to private sector. But UK’s unemployment rate as of March 2011 pegged at 8.0% and may increase steadily increase toward 2015. CIPD further report serious youth unemployment problem: there is an unemployed 1 person among 8 youths within the age bracket of 16-24 (HRM Guide, 2011). Further, UK officials reportedly spent ?43 billion on debt interest to reduce deficit to stabilize sustained economic growth (HM Treasury, 2010). In a separate development, international trading is seve rely affected with the natural disaster caused by quakes and tsunami affecting Japan which severely damaged properties and lives as well as caused major threat with the impending meltdown of its nuclear power plants. Elsewhere in major areas of the world, e.g.

Final Essay Example | Topics and Well Written Essays - 2000 words - 4

Final - Essay Example The company commenced its manufacturing and retail operations over 40 years ago, and according to the message from the CEO, Jules Di Bartolomeo, the company’s operations still continue to do well up to today. There is a lot of more innovation that the company gets from the fact that it has remained in manufacturing for a long time rather than if it was outsourcing and just being in retail. This is because manufacturing keeps the company struggling to keep up with the ever changing technology, hence increasing innovativeness and improvements in the line of products. Those companies that major in oversees products, majorly the company’s competitors, do end up filling the market with copied products, hence lack of innovativeness. Looking at the income statement, the company had a gross profit of 70.29% in 2012 and 70.92% in 2013. This shows that the company’s expenses such as cost of goods sold decrease as its income increased. Looking at the operating expenses, the company had 42.01% in 2012 and 40.46% in 2013. This again shows that the company has engaged in ways that are able to reduce its cost of operations in order to maximize on the operating income. The great reduction in the cost of operation therefore led to an increase in net income to up to 30.46% in 2013 from 28.28% in 2012. The god performance of the company by reducing its cost of operations made it to record an income before taxes of 1.79% in 2013 from 0.10% only in 2012. This shows a great improvement in the company’s income before taxes which therefore increases the company’s ability to meet its short term financial obligations. Even though the tax liability increased from -0.61% in 2012 to 0.27% in 2013, the net income of the company has still proved to increase despite it all. The net income therefore increased from 0.71% in 2012 to 1.52% in 2013. The company therefore closed the 2013 year with a net income of 1.51% after the