Macro Economic Case
Essay Preview: Macro Economic Case
Report this essay
The assignment is to make a macro-economic analysis of Aruba for flora market who have the intention to grow their business. It is important to know that the six major forces as listed below have a lot of factors that can influence a business. I will only use and explain the factors that have influence on Flora Markets and its products.
The six major forces are:
Demographic; Demographic factors are important factors that can influence the growth of Flora Market, because products are made for the population, who bigger the population is thus the more people there is to buy products. Its also important to know the age structure of Aruba, because its important to know which age category has the biggest percentage ( for example you can expect that the age category 15-64 yrs have a steady income and can spend money on products. Also important is the growth rate, if the rate is going up that means that the population will also rise, thus more people buying more products. As you can see below the population of Aruba has risen compared to 2010, which is a good thing. The growth rate is estimated at 1,436% that is also good because its positive ( goes up) and the biggest percentage of age structure goes to the category of 15-64 (who have an income, thus they can spend money buying products).
‧Population of Aruba 2010; 104.589 people / Population of Aruba 2011; 106.113 people
‧The population growth rate is estimated at; 1,436%
‧Age structure: The biggest percentage of the age structure goes to the category 15-64 years of age (70,3%)
Economic; Economic factors are important factors that can influence the growth of Flora Market, because if the economy is doing badly, most people will prefer saving money instead of spending money. Unemployment is another factor that has a big impact on the growth of Flora Market, if people are unemployed that means they dont have a steady income, thus they wont be spending money on products at Flora Market. Disposable income is also important because people can either choose to spend their disposable income or save it or both( Income after taxes, costs). GDP of Aruba is also important, because if its low that means that the economy in Aruba is bad or getting bad, which will lead to people saving money or only spending money on necessities and not on products at Flora Market, which are not necessities. Inflation rate is also important, because you can see if the prices have risen or fallen, that way you can see if products are becoming more expensive or cheaper. If products are becoming more expensive, people will likely buy less. The unemployment rate is 6.9% (listed below) thats an okay percentage ( the U.Ss unemployment rate is 9.1%) Thus Arubas percentage is not that bad. GDP of Aruba is $2.258 billion, which is good, its increasing. The disposable income is 14.5% which is also an okay percentage, so from that percentage people will decide if they want to save more or spend more. And the inflation rate is 2.2%, thus prices have risen, but that happens everywhere. So the economy in Aruba is doing okay with these factors.
‧ Unemployment rate is at; 6.9%
‧GDP of Aruba is; $2.258 billion
‧Disposable income: 14.5%
‧Inflation rate is at; 2.2%
Social-cultural; Social – Cultural factors are also important in the growth of Flora Market, because it is important to know for example the level of education ( the better the education, the better the income,