Larson Milestone 2

Abstract

Larson, Inc. is faced with three potential economic futures that can determine the type of strategic plan and goals to work toward. With the unpredictable future, the company will want to identify how to differentiate the product to gain market share and increase brand loyalty. By focusing and investing in certain aspects of the business and constructing the proper pricing strategy, Larson, Inc. will obtain their goals and maintain profitability through the tough economy.

Larson, Inc.: Business Recommendations Based on Economic Projections

In the current state of the economy, the future can be challenging to predict. To remain competitive, it is important to understand the potential economic futures that may occur and to develop a strategic plan to help guide the company toward a brighter future. By focusing on product differentiation and different pricing strategies, Larson,Inc. will be able to overcome future obstacles to obtain success.

Three Alternative Futures

There are three possible economic futures for Larson, Inc. to follow. The first reflects a “U” shape, in which the market faces prolonged uncertainty. It is slow to recover; the bottom of the “U” indicates the length of the recession. The second future is a “V” shape, in which the market has hit the bottom and is on the upturn of recovery. The last one is the most unpredictable. The “W” future, also known as the “Double Dip,” initiallyshows an upturn of recovery, but it is short lived and goes back down for a time before the upturn occurs again.

There are a variety of reasons for the fluctuation in these three possible economic futures. The primary variable is the status of the Gross Domestic Product(GDP) and if the economy is going into, out of, or remains in the middle of a recession. GDP, a basic measure of an economy’s economic performance, is the market value of all final goods and services produced within the borders of a nation in a year (McConnell, Brue, & Flynn, 2009)....