This economic boom was based around consumer goods-luxury items that many Americans wanted to buy but didn’t really need. The ‘booming’ economy began to self-generate, many industries thriving off the success of each other. As more people were employed, they had more money to spend, which increased the demand for products and resulted further in the economic boom. The average household was beginning to be able to afford new products which were becoming much more affordable as increased popularity caused many products to be massed produced. Making the price of many new inventions and products more affordable for the general public.
Increase monthly net profits goal was achieve by strategically increase the rental price in cities with high demand and growing market share. Orlando was the city with highest growing demand by volume. Demand for rental cars grew from 1.51M to 2.55M during that fiscal year. I took advantage of this high demand to gradually increase the price for rentals from $41 to $69 during weekdays and from $34 to $60 during the weekends. By the end of the fiscal year, net profits in Orlando grew from 9.2M (initial fiscal year) to 21.1M in September.
[5] There was also a rise of leisure time, emergence of an urban middle class, technological advances, and an increase of wages. The twenties saw an increase of consumer spending. Many wages were spent on cars, radios, and household appliances. The economy was booming. Workers were making enough money to have some leisure spending and time, and industries were taking advantage of this by catering to these new audiences.
The G.I bill (Servicemen's Readjustment Act) provided veterans with money, college tuition, and low interest loans so that they could buy homes. This contributed to the economy because soldiers returning home had money to spend. Another reason for the economic boom was new technology being invented that people wanted to buy. * In general the prosperity level of all sections of society increased. This brought about basic changes in lifestyle of Americans.
This is because they had access to radios and fridges really cheaply. This cause American production to rise up to about 50% this period saw lots of production of manufactured goods. All this caused many Americans to expect a high standard of living. Employment was high so this ment people had confidence and having work combined so people had money to spend on new consumer goods, which included cars and radios enabled many people to go to places more often. New forms of entertainment such as cinema caused many Americans who had money to go and see films or go and watch a baseball match ment they had confidence to travel in there cars to watch it.
P5 M3 Assess the impacts of changes in global and European business environment on a selected business. Oil price fluctuations Crude oil is the worlds most traded commodity by value, it is vital for many industries e.g. transportations, polymers and energy production that are closely linked with oil production As you can see in the image above the price of oil has crashed within a few months which has drastically decreased the price of fuels, the cause of this crash was due to new production methods which allowed other people to produce oil rather than the just the few that could before, this new method is called fracking. Assessment of impacts for KI KI are not heavily reliant on oil, they only use fuel for their cars which their main consumption. The price of fuel does influence them though, the biggest benefit is the effect on the customers, the lowering of the price of fuel means that people will, in effect, have a small pay rise, this will help KI as this will increase their customer’s disposable income and increase their consumer confidence.
Its market share in the US automobile market declined to 4.7% in 1991 from 5.5% in 1980, while during the same period other Japanese automakers increased their share in the US market from 17.7% to 28.5%. In Japan also, Nissan's market share declined from 34% in 1974 to below 19% in the late 1990s. In 1992 fiscal its pre-tax profits were $615 million - a 50% decline when compared to its 1991 pretax profits. Many analysts were of the opinion that in the early 1990s, the top management at Nissan failed to take notice of changing trends in the customer tastes especially in the US, its biggest export market. Commented David Magee “Management once hailed as progressive and trend-setting was now a part of Japan's old boy network, arrogant and oblivious to market changes and customer needs."
Causes Analysis: As to external issues, there are mainly three reasons causing overall industry downturn. Firstly, the nightmare of 9/11 deeply stroke customers’ confidence in traveling, leading to a drastic price cut. Secondly, many uncertainties, such as geographical climate, terrorism, terrifying virus, and increasing fuel prices, also gives great pressure to this industry. Thirdly, a fierce competition among three biggest players also gave great buyers’ power. The industry wide capacity is growing much faster than the demand growth.
Additionally, the continuously increasing steel prices leading to higher production costs and impacting product’s margin. Other players initiated price war (price differential of 5 to 10 % of Fortis discounted prices) while Fortis refused to continuously cut its prices, which caused Fortis to lose market share to its competitors. Increasing price sensitiveness of Fortis customers, decreasing market share coupled with low production utilization (70%) is increasing more and more pressure on Fortis to lower prices. In addition to its standard “4-8-14” discount, Fortis can apply price-flex strategy in order to selectively meet lower competitor prices. Question 3) Fortis marketing strategy focuses on value-added service to customers.
Reasons for the economic boom in the 1920s America experienced an economic boom after World War 1 ended because of many different factors. There was a rapid increase in industry and this caused many more people, including women to become employed and to earn their own money. Many new industries were created in the 1920s; one of the rapidly increasing industries was the car industry. Henry Ford revolutionised the production of cars by creating mass production. This meant that people had one specific job on the production line that they repeated over and over so they became very good at this one job, this meant that the T-ford model could be produced every 10 seconds.