I need help with the following questions:
- How would you deal with the uncertainty in macroeconomic forecasts?
- How do business cycles affect the performances of Coca Cola?
- What could Coca Cola do to mitigate any undesirable effects of business cycles?
//In this response, we will discuss how to deal with the uncertainty of macroeconomics forecasts for reliable and accurate decision making in the future. This will be explained with the help of various methods involving trend projection, exponential smoothing and econometric method, etc. We will also study the affects of the business cycle on Coca Cola's performance with the help of various phases like recession, depression, recovery and prosperity. It will help us know the company's prospects in critical times and various innovative strategies to serve its customers in the best manner.//
Uncertainty in Macroeconomic Forecasts
The uncertainty in macroeconomic forecasts involves risk and opportunity. Management focuses on several problems, including cost and demand of goods and services of the company. The company forecasts when they have to introduce any new product, pricing products and hiring new people. Forecasting involves predicting at regional, national and international level and macroeconomic predictions involve business investment, home building, consumer spending, exports, imports and government spending and purchasing (Hirschey, 2008).
There are various techniques that can be applied to deal with uncertainty, such as trend analysis and projection, qualitative analysis, exponential smoothing and econometric method. These methods help management make reliable, accurate decisions and avoid bias in implementation (Hirschey, 2008).
Affects of Business Cycle on Performance of Coca Cola
The business cycle refers to an economic fluctuation that ...
The response addresses the queries posted in 950 words with references.
Business Cycles and Economic Outlook: Purchase of Coca Cola Company shares
1. Today how many Coca Cola Company shares can you purchase with $1000 even if the brokerage fee is waived?
2. From mid-APR 10 to now, how many Coca Cola shares you have and multiply by the current stock price. Did it go up, down or remain the same?
3. What were some major factors seem to affect the growth of Coca Cola stocks?
4. How do you think the Coca Cola stock will do in another five years (2014)?
5. What are some economic factors that would affect Coca Cola stock (i.e. new technology, trends, etc.)?
6. Give some insight as to possible returns from investing in the Coca Cola stock market.
a) Keep in mind that the risk-reward dynamic is a little more volatile in the stock market than it is in other alternatives.
b) Compare stock market investments to other alternatives.
c) What are some of the opportunity costs of investing the $1000 in the DOW 30? d) what other ways the $1000 could be invested).