Assignment
Economic opportunities and threats are often the barometer of an organization’s continued competitive advantage. The ability to “predict” changes in the stock exchange or the value of the dollar, anticipate interest and inflation rate changes, and understand why consumer index factors change (home sales, average wage growth, exports, unemployment rates) all directly impact a company’s strategies.
In this assignment, include a link to a news article about something economic (such as inflation rate changes, home sales growth/declines, average wage growth, exports, imports or unemployment rates) affecting the hospitality industry and your analysis of what impact the specific force will have on the hospitality industry within the upcoming year.
Economic indicators can be very contradicting sometimes as the news we get today is not with those we got yesterday. Nevertheless, the economy is the influence on the business performance. Shifts and the movements of the economic parameters often affect the consumer purchasing power as well as spending patterns. The success of any form of a business is affected by the ability of its management to utilize the economic opportunities maximally and at the same time trying to overcome economic threats which tend to hamper with business success (Minoo & Claudia, 2008). Economic threats should not make the business collapse, but it should instead strength it. It will do so in the following ways. First, the industry will adopt new policies that will help it to match or outmatch its competitors. Such policies may include the acquisition of modern technology product diversification. Economic threats include devaluation of the dollar versus other currencies, inflation, and the decline in the consumer purchasing power, an increase of taxes by the government and, an increase in the wage rate. If the business manager can predict the changes in the economic parameters, for instance, change in the value of the dollar, its significance as it will have an opportunity to make changes that will accommodate those economic threats, therefore, it mitigates the risks that resonate with economic threats.
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