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predictable performance cycles

This Module, you're going to think about cycles in your reference organization - predictable changes over time in key indicators of the organization's performance - and how sensitive you think the organization is to the business cycle.



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1. Are there any predictable performance cycles for your organization? If so, what are the periods over which its cycle waxes and wanes? How sensitive do you think your organization is to expansions (upswings) and contractions (downswings or recessions)? Explain. If it is not sensitive, then explain why it is stable as the economy moves up and down.
Yes. There are predictable performance cycles for my organization. The performance is related to manufacturing activity. During the months when manufacturing activity is low, the demand for machine tools goes down. The reason is that most of the machine tools made by my company are used in the manufacturing industry. The Beige Book summary for the month of June says that Manufacturing remained weak, slowed down or declined in most states. This means lower demand for lathes, drills, milling machines, planers or shaping machines. My organization is very sensitive to changes in manufacturing, and even slight decreases in manufacturing lead to a fall in demand for our company's products. The report says that primary metal machinery especially metals remain weak. Since most of the machine tools ...

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This answer provides you an excellent discussion on predictable performance cycles