Everyone has an opinion on where the economy is going and what the stock market might do in the coming months. There is no debate that inflation and the associated rise in interest rates have affected businesses, both large and small. This week we are looking not only at financial statements but at the role of financial management of the firm. Rather than focus on the straight financial statement changes, we will look at how business operations may have changed and the actions/reactions of managerial decisions. Some of the decisions are financial and others are operational. For the purposes of this discussion, feel free to go beyond what would strictly be in the scope of "financial managers".

The Oracle Netsuite article (attached, with a linked video) describes various areas of business operations that are impacted by inflation and a related issue, labor supply.

After reading the article and watching the minute-and-a-half video, consider the following:

How has inflation affected the company you work with (or a company you are most familiar with)? What are the supply and demand changes you have seen? What about input (supply) costs? Labor, such as manpower shortages or turnover and/or significant wage changes? Has your company changed its pricing policy? What other changes has your firm implemented that seem to be related to inflation and/or today's economic climate?

Are there operational changes that the firm has implemented? Consider some of the possible changes suggested in the video. Every business is a little different, so your firm's industry may be unique. NOTE: If you are not currently working, then pick a firm or industry you might be familiar with. How have they reacted to the economic changes in the last couple of years, with particular emphasis on reaction to inflation?

Bottom line, what am I looking for?

 

Business changes, operational and/or financial reactions to those changes?

How did those changes affect the firm? Good, bad, or a little of both?

https://www.youtube.com/watch?v=FlU3DQaKQ0E

 

Your outside source is to provide support for your arguments on why/how certain changes occurred and/or why your firm's reaction to those changes may or may not have been effective or productive.

Answer rating: 100% (QA)

Inflation has had a significant impact on businesses across industries and my company ABC Inc is no exception As a leading manufacturer of consumer goods we have seen a surge in raw material costs lab... View the full answer