Essay About Inflation Ratenegativelower Gdp Growth And Inflation Rate

Business Analysis
PART II: MANAGEMENT QUALITY AND CORPORATE GOVERNANCE ANALYSIS.2.1 Macroeconomic Analysis Table 1      Summary of Macroeconomics Impact to Beacon Lighting GroupNo.FactorsImpact to beacon lighting group ProfitabilityCorroborative Arguments1Economic Growth (GDP) and Inflation RateNegativeLower GDP growth and higher inflation2Exchange RateNegativeLower AUD against USD3 Geographic MarketPositiveTransportation cost lowerSave carrying cost and directly reduce the product costEconomic FactorsEconomic Growth (GDP) and Inflation Rate[pic 1][pic 2](Source: Trading Economics)America’s GDP growth forecast will be slower in next 2-3 years and inflation rate in 2 years will be increase. Inflation rate means that the price of general goods or services increases exceed the normal phenomenon during a period of time. In other words, the equality currency is able to buy fewer goods or services than before. Consequently, the value of per currency means lower than before. This leads to customers have lower demand in US.Exchange RateBeacon Lighting film sells and exports large amounts of goods to United States by US dollars. As a result, the group is affected fluctuations by the AUD/USD exchange rates. If the exchange rate is higher than before, it manes the US dollar becomes more valuable and increases the power of purchase and demand. On the contrary, if the exchange rate is lower, it has adverse affect to export. [pic 3]Market FactorsAcquisition is a business strategic to integrate the finance, management in order to promote the optimized allocation of resources, saving management cost. It combines many similar companies that can help an enterprise grow rapidly from its origin size. In Sep 2015, Beacon Lighting acquired the Essendon and Watergardens franchised stores to expand the market shares. The aim is to provide the acquisition chance that becomes the core business firms in existing market place. Geographic Market