Macro Environment Toyota

Essay specific features

 

Issue:

Business

 

Written by:

Davida D

 

Date added:

August 2, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 963

 

Was viewed:

970 times

 

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Essay content:

The four most important of these forces are: • the growth rate of the economy • interest rates • currency exchange rates • inflation. The growth rate of the economy leads to increased expenditure and, by increasing demand, reduces competitive pressures in industry. • Lower interest rates determine a company’s cost of capital, and thereby its fixed cost structure, stimulating investment, but also lowering barriers to entry by potential competitors...
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Planning under such conditions becomes hazardous. • Price deflation on the other hand, increases the price of fixed payments. • Companies with a high level of debt have to service this debt with a steady fixed amount, which will become more expensive under these conditions. 3. Technological forces Technological forces can be seen as being both a threat as well as creating opportunities...
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