Economic Factors: The Role and Impact on the Organization

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Outline

Economic factors impact the financial outlook of an organization. This paper studies how economic factors will impact the growth and survival of a convention centre.

Introduction

Economic factors play a key role as they have a huge impact on the financial matters of any organization. These factors affect a number of crucial variables which influence the organization. The survival of any organization is influenced by the conditions inside the market it operates. This paper studies four elements which include labor issues, management influence, interest rates, strength and weakness of the economy and government policies. The analysis studies the impact of each of these factors on the business of a convention centre which seeks to expand its markets. The convention centre offers an ideal and unique place for business organizations to conduct and organize seminars and workshops. The analysis of the market can assist the convention centre in surviving harsh economic conditions and factors which might affect its stability in the market.

Labor issues

The convention centre requires a highly trained and skilled labor force which reflects the availability of the particular skills at the national or regional level. The labor costs of the company will be influenced by inflation and general trends in the industry. The trade unions will also be an important issue for the convention centre to deal with while looking at labor costs.

Management influence

The convention centre would require highly qualified managers in order to ensure that the tasks and objectives of the organization are met. The management must have adequate communication and writing skills. They must be aggressive, ambitious and have the ability to research the market. Motivation and communication are vital skills for the management in order to market products to the consumers. The lack of any of these skills would be a disadvantage for the convention centre. Cindy says that “The communications strategy defines how you present information about your company and products” (Kennaugh, 2007).

Interest rates

The capital market of the convention centre will determine the conditions which are required for sources of funding. The interest rates charged for loans will be affected by inflation and international economics. The determining interest rate will be fixed by the central bank. The expectations of the shareholders will be to ensure that the convention centre performs well. The stakeholders play an important part in the economic well being of the convention centre by their ability to provide more finance and assistance to the organization.

Strengths and weaknesses of the economy

The strength and weakness of the economy will determine how successful and profitable the convention centre is because they affect capital availability and cost. The demand for the products of the convention centre will fuel rapid profits for the convention centre. In the opposite scenario, the convention centre might find its profitability in the industry to be low. Susan says that “The marketing plan is the specific roadmap that’s going to get you there” (Ward, 2007).

Government policies

The economic conditions of the convention will be determined and influenced by political and government policy. Government decisions would provide both opportunities and threats for the survival of the convention centre. For instance, if the convention centre operates in Europe the issue of a single European currency would affect its economic policies.

Conclusion

Economic factors will remain a decisive factor in the growth of the convention centre. The correct policies will ensure the survival of the organization and increase its profits. The economic factors will also be determined by the strength and weaknesses of the local economy.

References:

Kennaugh, Cindy (2007). Develop an effective marketing strategy. Web.

Ward, Susan (2007). The Key to Marketing: The Marketing Plan. Web.

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