Inflation, Unemployment and Growth Essay Example | Topics and Well Written Essays - 500 words

Inflation, Unemployment and Growth - Essay Example One disadvantage is the distortion in weighted averages. It may produce wrongful information on inflation. 3. The current inflation rate is at o.6%. The core rate of inflation is the annual rise in consumer expenditure. This rate was at 3.3%. The inflation rate for health care services was measured at 1.7%. This is with the gradual increase in the consumer price index of urban consumers. 4. A fall in price levels of a commodity over time is termed as deflation. One noteworthy thing brought on by deflation is a consumer’s purchasing power. More goods and services may be bought with little capital. It usually benefits people earning fixed income and consumers with less debt consumption. Japan’s experience with deflation started in the 1990’s. The creation of policies to end it did not assist. It did not create an increase in broad money which presented a problem. This led to an increase in deflation. There are more reasons to worry about deflation than inflation. One is the failure to repay debts. 5. Inflation is caused by the dependency of money-supply growth rate, and its relativity to the growth of the economy. To assist in reducing inflation, prices and wages need adjusting. This is to make other factors have a minimal effect on a trend line. 7. Internal method of valuing money involves the reverse value of prices. Increases in price levels mean that, the amount of goods purchased by a single unit also decrease. The external method of valuing money involves calculating the amount of foreign currency, which is bought from a domestic money unit. 8. The producer price index measures average changes in prices. These are prices expected by resident manufacturers for the total output produced. The use of the PPI is to measure the force being put on manufacturers by the costs of their raw resources. 12. Difference among the measures of unemployment, for example, U1 involves people who

What are the main issues which an organisation must consider when Essay

What are the main issues which an organisation must consider when implementing strategic change - Essay Example me main issues which organizations must consider in the strategic implementation process are focusing on the redesigning and restructuring of the organization. Another significant issue may be caused by the ambiguous flow of communication and the manner in which information is handled. Measuring competencies and planning resources is another challenge. Most firms have resorted to utilizing shared resources and competencies. This is especially true for mergers and acquisitions or even in situations when two departments or divisions may be merged. One more critical problem in the implementation stage may be created due to the inability to translate the aims developed in the strategic change stage. In order to take care of these issues, a maturity model has been developed which is associated with sustainability and have diverse elements of evaluation and resourcing, results, managing capability and capacity, strategy and policy and managing programs. The change management maturity matri x in this case defines various stages of strategic change implementation by classifying them as immature, early maturity period, defined, managed and optimization. The last state is the one which a firm needs to attain when it has optimum allocation of resources and garners optimum levels of revenue by implementing strategic change. Another core issue in handling strategic change is lack of effective leadership in the organization. It is important to have an effective leader who is able to deftly handle change management strategy and drive motivation and employee engagement. Organizations also face issues in strategic implementation while managing the employees. Major hurdles are faced because strategic change efforts are resisted by personnel. The role of non financial and financial...Scholars have focused on certain elements encompassing strategy. These are as follows: a) Depending on uncertain market conditions, strategies are revised and reformulated. b) Strategies demonstrate t he manner in which resources may be utilized to fulfill the desires of entrepreneurs c) They provide a direction to in developing the organization d) Strategies are aimed to make and develop long term prospects of success by gaining competitive edge over rival firms (Markiewicz, 2011). Implementation of strategic change is a very challenging task. Successful strategic change implementation leads to business success whereas failure in implementing strategic change may lead to catastrophic outcomes which may sometimes wipe out the business enterprise. Critical strategic change process happens when supervisors use symbolic resources and discourses in order to obliterate existing systems in meanings and find out new ones to try to set a direction to the strategy formulated and implemented (Buchanan & Dawson, 2007). In fact, a survey conducted in the year 2009, comprising of 190 staff and line managers confessed that strategic change implementation is critically significant in the strate gic implementation process. There are several hindrances in the strategic change implementation processes. Sometimes time management in formulating and implementing the new strategy may also lead to failure in the strategic change process.