Lecture 9 / Chapter 2 Flashcards
Organization fortunes
Interconnected w/ decisions that stakeholders, competitors, gov’t, other orgs are making
environmental scanning
monitoring environment in which orgs/clients operate in for influential trends, issues, factors
Strategic comms
need to be an asset by incorporating economy knowledge and monitoring economic indicators into comms activities/advice
economy
aggregate sum of all goods/services produced among market participants
economics
study of cause-and-effect relationships - the consequences of decisions that people make about use of land/labor/capital/resources that go into producing products/services that are bought/sold
macroeconomics
concerned with economy as a whole - actions gov’t and countries take to influence the broader economy
microeconomics
focused on individual firms/households, concerned w their actions
supply and demand
in a free market they interact/influence pricing of products/services - when supply more than demand prices go down, in v.v. prices go up
supply
production costs, technology, competition in market, future pricing expectations
demand
income levels, consumer preferences, prices of related goods and products, future pricing expectations
GDP
gross domestic product - measure of country’s standard of living/general economic health - represents market value of all goods/services produced w/I a country over a set time
economic cycles
economies go through, when industry/country is either growing/expanding or declining/contracting
US GDP
measured/reported quarterly
Recession
when GDP is negative for two quarters in a row - severe one is known as a depression, most infamous is decade following stock market crash of 1929
BRIC Countries
emerging economies of Brazil, Russia, India, China - growing at faster pace economically than US (mature market)
Employment Report
aka jobs report/jobs number - data on state of employment/unemployment rates - US bureau of labor stats release number of jobs added/lost in US workforce in prior month - sectors. Wall Street estimates - if better than anticipated = good, worse than = bad
Jobs Report
released jointly by payroll processing company ADP and ratings agency service Moody - based on private sector hiring by ADP customers
US Department of Labor:
every week release report on jobless claims - how many people have filed for unemployment benefits in the prior week - generally less volatile and receive less attention than monthly employment reports
Inflation:
rate at which prices rise for products and services, watched by business managers. Means a dollar buys less than it used to. Decreases the value money and reduced purchasing power
CPI:
consumer price index - calculated by US Bureau of Labor Statistics, most widely followed measure of inflation, measure of average prices paid by urban consumers for a basket of goods and services
US inflation:
less than 2% annually is viewed as acceptable - most countries have own version of CPI and targets
Deflation:
falling prices - even worse than inflation, leads consumers to delay purchases, consumers feel poorer, value of assets fall. Steady prices are best
Interest rates:
the rate at which interest is paid by people to borrow money from lenders or banks. Affect price and availability of credit for purchasing cars, homes, businesses. Impact price of stocks, bonds, other financial instruments
Low interest rates:
“cheap money” - promote economic growth
