GDP

• What is Gross Domestic Product (GDP)?

  The total value of goods and services produced in a country in a given time period
• What happens when there is a growing GDP?

  Rising incomes and consumer demand
• How does a growing GDP impact strategic decision-making?

  Businesses may expand, make investments, or launch new products
• What happens when there is a falling GDP?

  Reduces demand
• How does a falling GDP impact strategic decision-making?

  • Retrenchment
  • Reduce workforce
  • Delay investments
• How will a falling GDP impact marketing decision-making?

  • Adjust pricing strategy
  • Promotional budget
• How will a falling GDP impact operational decision-making?

  May cut production or stock levels
• How will a falling GDP impact finance decision-making?

  Increased focus on cash flow forecasting during economic downturns