The Effect Of Macroeconomic Shifts On The Ridge Tool...

Any company can do well in a vacuum, free from the effects of the economy as a whole. While a firm can be successful with individual households, they are by no means exempt from the effect of macroeconomic shifts. Macroeconomic shifts are those that impact the aggregate supply and demand of an entire country, or the world. The aggregate supply and demand curves are plotted to display the real domestic output of a country vs. price. An event that is seemingly unrelated to the firm can change the future for a firm in the short term. We will be examining the effect of macroeconomic shifts on the Ridge Tool Company, a subsidiary of Emerson Electric. Being that Ridge tool is a manufacturing firm, the macroeconomic variables that have the most impact are consumer wealth, resource costs and expectations. First the variables will be defined, then they will be analyzed using a historic perspective against ridge tool’s financial statements, and finally, we will be comparing to prior res earch to note any similarities to micro economic impacts. Macroeconomic variables have a large impact on a company’s performance and on our outlook as citizens. Before looking at past shifts, let us examine the variables and their impact on the economy. Variables Defined The Henry George institute defines wealth as the value of all material goods that are produced by labor and the exchange value of those goods within the economy. Macroeconomic wealth fluctuates with unemployment, inflation and generalShow MoreRelatedHomework11617 Words   |  47 Pages | |13-2 |Blue Ridge Manufacturing (B) | |13-3 |Nebraska Toaster Company (Target Costing) | |13-4 |Mercedes-Benz All Activity Vehicle (Target Costing) | Readings 13-1: â€Å"Target Costing at a Consumer Products Company† by Mohan Gopalakrishnan; Janet Samuels,Read MoreProject on Risk Management46558 Words   |  187 Pagestowards the economic and development. Indusind Bank was incorporated on January and obtained Certificate of Commencement of Business in February 1994. The bank was promoted by IndusInd Enterprises and Finance Ltd. (IEFL) and five Mauritius based companies’ viz. IndusInd International Holdings Ltd. (IIHL) IndusInd (Mauritius) Holdings Ltd. (IMHL) IndusInd Ltd. (IL) IndusInd Investments Ltd. (IIL) De Five Mauritius Holdings Ltd. (DFMHL). The bank commenced commercial operation in April. It undertookRead MoreCase Study for Management Accounting36912 Words   |  148 PagesCASES FROM MANAGEMENT ACCOUNTING PRACTICES Table of Contents Case 1: Case 2: Bal Seal Engineering Robin Cooper Bill’s Custom Planters William Stammerjohan Deborah Seifert Dublin Shirt Company Peter Clarke in assoc. with in assoc. with Paul Juras Wayne Bremser ECN.W William Lawler Endesa Gary M. Cunningham Scott Ericksen Francisco J. Lopez Lubian Antonio Pareja Kincaid Manufacturing Jon Yarusso Ram Ramanan Osram.NA John Shank Lawrence Carr William Lawler Pleasant Run Children’s Home Brooke E. SmithRead MoreCase Study for Management Accounting36918 Words   |  148 PagesCASES FROM MANAGEMENT ACCOUNTING PRACTICES Table of Contents Case 1: Case 2: Bal Seal Engineering Robin Cooper Bill’s Custom Planters William Stammerjohan Deborah Seifert Dublin Shirt Company Peter Clarke in assoc. with in assoc. with Paul Juras Wayne Bremser ECN.W William Lawler Endesa Gary M. Cunningham Scott Ericksen Francisco J. Lopez Lubian Antonio Pareja Kincaid Manufacturing Jon Yarusso Ram Ramanan Osram.NA John Shank Lawrence Carr William Lawler Pleasant Run Children’s Home Brooke E. SmithRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesHughes−Ginnett−Curphy The Art of M A: Merger/Acquisitions/Buyout Guide, Third Edition Reed−Lajoux and others . . . This book was printed on recycled paper. Management http://www.mhhe.com/primis/online/ Copyright  ©2005 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a databaseRead MoreContemporary Issues in Management Accounting211377 Words   |  846 PagesWeld but has also witnessed extensions outside its established realms of activity. Wider systemic transformations including changes in political regimes, novel conceptions of management controls, the impact of globalizing forces on commercial aVairs, shifts in notions of eVective knowledge management, governance, and ethics, and technological advances, including the rise of broadband, have all impacted management accounting endeavours. The Weld is today, as fast-changing as it has ever been. This book