http://econoday.com Why do you think management should be aware of these indicators and what do they mean by busines strategy such as: Claims, Durable Goods Orders, Jobless, Index, MFG, ISM, GDP,...

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Why do you think management should be aware of these indicators and what do they mean by busines strategy such as: Claims, Durable Goods Orders, Jobless, Index, MFG, ISM, GDP, Personal Income and Outlays?

Asked on by barbiedot

6 Answers | Add Yours

accessteacher's profile pic

accessteacher | High School Teacher | (Level 3) Distinguished Educator

Posted on

A good and successful manager needs to be aware of all of these factors in order to maximise the ways in which he or she can be aware of the context of his or her business and make the most of the varying conditions. The posts above give good ideas as to how important any one individual factor such as the employment rate is for a business. The true skill lies in being aware of how all of these factors operate together and interact with each other to creat an ever-changing environment for your business.

rrteacher's profile pic

rrteacher | College Teacher | (Level 2) Educator Emeritus

Posted on

I agree with post 5, depending on what the industry is that we are talking about. If I was thinking about whether or not to expand, for example, durable goods orders would be the economic indicator I'd look at. For economists, however, the point is that you look at all of them in tandem to get the most nuanced picture possible of what the economy is doing. What we see in the news, even on business shows, is very often cited out of its larger context.

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

Personal income would be a lot more valuable than looking at the unemployment rate if you are trying to determine what the level of demand for your product would be.  Durable goods orders tend to be a leading indicator while jobless rates are not.  I do not think that a manager should be looking at jobless rates.  I think they should be looking at more leading indicators like durable goods orders to try to predict what will happen in the future.

litteacher8's profile pic

litteacher8 | High School Teacher | (Level 3) Distinguished Educator

Posted on

A good manager is aware of all of these, but also focuses on the company's specific needs. You need to focus on the bigger picture, but you also need to see how the big picture affects your company. We all exist in the larger economy, but we also exist in the economy of our own businesses.
vangoghfan's profile pic

vangoghfan | College Teacher | (Level 2) Educator Emeritus

Posted on

Management of practically any company should be aware of the jobless rate. If the unemployment rate is high, there is likely to be less demand for any given product.  Even people who are still employed are likely to spend less money if they are worried about potentially losing their own jobs. A vicious cycle can result: fear of unemployment suppresses economic demand, and declines in demands for goods and services can lead to further unemployment.

readerofbooks's profile pic

readerofbooks | College Teacher | (Level 2) Educator Emeritus

Posted on

There is a lot here to consider. One of the most important numbers to focus on is the jobless rate. This is one of the key indicators of whether the ecnonomy is turning around or not. Increased jobs show that the private sector believes that they will be profitable in the future. Also jobs suggest that people will spend more money, which makes the American economy work. So, it is essential to focus on this number.

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