The State Of Company Essay

737 words - 3 pages

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"Decision Environments" Please respond to the following:
* From the first e-Activity, describe the company’s business culture. Determine whether it is certainty, risk, or uncertainty. Then, examine ways that external factors contribute to the state of the company.
I chose General Motors from the Fortune 500 2013 list. General Motors ranked 7 on the list. General Motors Company (GM or “the company”) is primarily engaged in the development, production and marketing of cars, trucks and automobile parts. The company also provides automotive financing services. The company primarily operates in North America, and Europe. It is headquartered in Detroit, Michigan ...view middle of the document...

However, a major external factor that may contribute to the state of the company is economic recession. When the business cycle is at the stage of recession known as recovery, it becomes even difficult for the potential customers to keep up with the routine purchasing habits. This means that the customers purchase only the things which are economical and are of absolute importance. The new protocols imposed by the Fiscal Policy Institute (FPI) resulted in a hike on the organization by the government which resulted in the increase of selling prices, thus making the vehicle out of reach of purchase. Inflation as well as deflation marks a straight blow to the cost of products and the services. For instance, if more tax is levied on customers, it implies diminished income which finally results in lower expenditure.
All these circumstances directly affect the potential customers to turn away from GM and chose more affordable and economic automotive products.
* Examine an instance where you had to make an intuitive decision that required quick thinking on your part. Describe the end result of the decision you made and evaluate your decision-making skills. Then, determine what you would do differently based on the knowledge and insight you have gained since then.

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