The economy adversity imbibes clear understanding of the macro economic and micro economic policies that will have an impact on the general functioning of the organization. Both macro and micro economic goals need to be incorporated into the business organization strategy in an attempt to achieve the overall economic tranquility which will enhance attainment of company’s strategic goals. According to Consumer Products Inc. realization of the strategic goals for the company depends entirely on the articulation of the micro and macro economic polices and goals.
The major microeconomic goal sin which the company should articulate to when making its long term decisions include equity and efficiency. Equity involves the company distributing the organization wealth and income to its employees and society as a whole. In the current economy, individual needs fair distribution of resources and also being tereated fairly. The expansion strategy that Consumer Products Inc. aims at achieving should focus on the individual’s welfare living in the society. Despite this, defining an equitable distribution in the economy is wanting and the management can not fully arrive at equitable distribution of wealth and income (Tisdell, 2010).
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Various scholars argue that when the management provides its staff with the same income and possess same wealth, then the management would have achieved the equity goal. In addition to this perspective, other scholars attribute that equity is achieved when individuals receive wealth and income in the same proportion they create value. The management of Consumer Products Inc. should ensure that equity is achieved when expending its operations as these will ensure increased sales turnover.
Consequently, Consumer Products Inc should ensure that the decision made is compatible with efficient undertaking of the company’s operations. Efficiency in the organization is attained when the consumers, and society as a whole, in the geographical region where expansion is being undertaken, are able to achieve greatest satisfaction. In case of prevalence in efficiency, consumers and employees of the organization will not contemplate changing the management decision on strategic implementation of its goals. Currently, the economy faces scarcity of resources therefore the management can easily subvert this notion by ensuring that limited resources available to the economy are efficiently put into use to maximize the consumers and employees wants.
Consumer Products Inc will attempt to ensure that supply price and demand price are equal. The limited resources available for the company should be widely distributed to the various regions in order to effectively achieve its goals. Despite this, equality in supply price and demand price will not be effectively achieve as there is no comprehensive indicators of attaining this goal. In theory, it is easy to show how efficiency in the economy can be achieved but practically it is impossible to achieve due to complexity in the economy (Hall, 2007).
Contrary to this, management of the company needs to consider the macroeconomic goals when making the strategic decision on expansion of its operations. The major goals that the decision made should articulate to include; full employment in the economy, Stable inflation, price stability, external balance, economic growth, and minimal economic fluctuations. The company should ensure that its expansion operations meet the aggregate goal of full employment. In essence, business expansion usually goes hand in hand with employment of individuals (Hall, 2007). The company will employ staff and workers to work in the newly created business opportunity. It is, therefore, the work of the management to ensure that maximum numbers of staff are undertaken with imminent focus on the available resources.
Price stability in the economy is of consequential importance
The company should not raise or lower the prices of the commodities in the newly integrated business entity with an aim of increasing its competitiveness in the economy. Although the economy experiences competiveness in the business operations, the management should not resort in reducing the prices of the economy. This will destabilize the prices and may lead to unfair competition in the market. The management should rely on other means of attracting consumers like promotional activities, advertisement, and issuance of free samples. Such strategies will ensure the Company’s market share is relatively higher compared with other competing markets.
The management decision should comply with the available economic policies that ensure long run economic growth in the economy is achieved. Economic growth being the major aggregate of macro economic, the decision made by Consumer Products Inc. should be aimed at realization of this economic goal. The growth in the economy will only be achieved when the business operations do not undertake strategies that will impede development. The operations should aim at enhancing internal and external economic balance. Internal balance will be attained when the economy is at full employment and the prices for the commodity are stable (Prachowny, 2001). This will only be achieved when the organizations operating in the geographical region ensures that prices for their commodities are dictated by the demand and supply forces in the market. In addition, external balance will be achieved when the economy experiences equilibrium in its balance of payment. Consumer Products Inc decision of expansion should, therefore, comply with the micro and macro economic objectives in the economy.