, Chapter 5 Information
Topic: Managing the Changing Economic Enviroment
E-Book: Page 176-191
Activity: 96-100
Outcome:
• Fundamental of business cycle
• Business cycle and firm strategy
, Changing economic environment
What is Business Cycle
The Business Cycle refers to economy-wide fluctuations in production, trade, and
general economic activity
, The economy important to business
• Determines 16-53% of firm profits
• Ignore at your peril
– Basil O’Hagan: R100m to 0 in six months
– Borrowing to expand at the wrong time
Topic: Managing the Changing Economic Enviroment
E-Book: Page 176-191
Activity: 96-100
Outcome:
• Fundamental of business cycle
• Business cycle and firm strategy
, Changing economic environment
What is Business Cycle
The Business Cycle refers to economy-wide fluctuations in production, trade, and
general economic activity
, The economy important to business
• Determines 16-53% of firm profits
• Ignore at your peril
– Basil O’Hagan: R100m to 0 in six months
– Borrowing to expand at the wrong time
