gross domestic product

Examples of gross domestic product in the following topics:

• Financial Rewards for Managers

  • CEO pay growth compared to employee salaries, U.S. gross domestic product, and overall U.S. corporate profits
  • CEOs, as primary examples of upper managerial salary, receive high salaries in comparison to other gross income indicators.

• Global Strategy

  • A global strategy may be appropriate in industries where firms face strong pressures to reduce costs but weak pressures to respond locally; globalization therefore allows these firms to sell a standardized product worldwide.
  • By expanding to a broader consumer base, these firms can take advantage of scale economies (cost advantages that an enterprise obtains due to expansion) and learning-curve effects because they are able to mass-produce a standard product that can be exported (providing that demand is greater than the costs involved).
  • Differentiation strategies also enable economies of scope, either fulfilling different needs in different markets with a similar series of products, or developing new products based upon the needs and consumption habits of a new market.
  • Global strategies require firms to coordinate tightly their product and pricing strategies across international markets and locations; therefore, firms that pursue a global strategy are typically highly centralized.

• Forecasting

  • For example, if consumer spending is down in Q2, then it is likely that gross domestic product (GDP) growth will be down in Q3.

• PESTEL: A Framework for Considering Challenges

  • As global economics now supersede domestic economics for many businesses, companies must consider a number of opportunities and threats when expanding into new regions or identifying optimal areas for production, sales, or corporate headquarters.
  • These factors incorporate exchange rates, gross domestic product (GDP), consumer purchasing indices, interest rates, inflation, and a number of other indicators of economic health or direction.
  • This trend affords the food industry opportunities to create products that meet this social desire; as a result, candy manufacturers may want want to consider diversification.

• Considerations when Managing a Global Corporation

  • Geographic and demographic expansions underline the critical importance of managers to understanding the illusive concept of localization, which in short defines the way in which a company's product or service should be adapted to fill the specific needs of a particular culture, demography, or geographic region.
  • This graph shows growth in gross domestic product in various advanced economies, accumulated over the periods 1990–1999 and 1990-2006.

• Employee Dismissal

  • Indeed, most dismissals are a by-product of economic conditions or organizational failure beyond the individual employee's control (i.e., layoffs).
  • Gross misconduct offenses, such as violence, serious negligence, repeated insubordination, fraud in the job application process (whenever it is discovered), harassment of co-workers, or drug use at work are grounds for immediate dismissal.

• The Challenge of Globalization

  • Globalization is the international integration of intercultural ideas, perspectives, products/services, culture, and technology.
  • In general terms, globalization is the international integration of intercultural ideas, perspectives, products/services, culture, and technology.
  • This chart illustrates the process of moving from an international product to a localized product step by step, making note of the element of production that can be universally applied compared to those that need a localized touch.
  • This global culture is often criticized for taking the place of previously established domestic cultures (and motivating consumerism).
  • As a result, managers should carefully consider how to best localize products to retain cultural identity in the regions they operate.

• The Challenge of Diversity

  • Globalization has resulted in enormous cross-cultural relationships, along with high percentages of domestic diversity.
  • Stemming from various legislative initiatives in the 1960s, the concept of equality and a fair distribution of opportunity became a domestic focus in the United States.
  • Majorities in businesses creating a homogeneous culture is also a substantial threat, as company culture is a direct product of the participants (employees).

• Labor Laws

  • Labor laws will differ substantially from country to country (and from state to state domestically), so human-resources professionals must be region-specific in their consideration of specific cases.
  • The state of labor law at any one time is therefore both a product and a component of struggles between different interests in society.

• Responding to Uncertainty in Strategic Planning

  • For instance, an increased trade deficit may trigger an economic recession, which in turn creates unemployment and reduces domestic production.