please answer the case study and thanks

Measuring Changes in Macroeconomic Activity: Implications for Managers At the end of May 2012, the government reported that the U.S. marketing to target increasing numbers of cost-conscious cus- GDP grew in the first quarter of 2012 at an annualized rate of tomers. The company planned to expand its presence in con- 1.9 percent, which was less than the 2.2 percent growth rate venience stores, clubs, and drugstores, given slower sales in previously estimated. These and other data reflected a view of supermarkets. The company also tested smaller and cheaper an economy that was slowly recovering from the recession that package sizes to appeal to customers with reduced incomes. officially began in December 2007 and ended in June 2009. Joy Global Inc., a U.S. mining-equipment maker, said that the The government reported that the number of workers applying economic uncertainty could keep American mining compa- for jobless benefits increased by 10,000 in the previous week, nies from completing expansion projects and that international while a regional manufacturing report for the Midwest showed companies might not develop new operations. Armstrong slower growth in the previous month. First-quarter growth World Industries, a flooring manufacturer in Lancaster, PA, was decreased by less inventory building by companies than reported that it would hire more factory workers but only when originally estimated, which meant that companies might replen- home sales increased and nonresidential business stopped cut- ish their stockpiles in the second quarter. Corporate profits ting back. The company was hurt by both cuts in school fund- increased $1 1.4 billion before taxes in the first quarter of 2012 ing in the United States and weaker sales in Europe." following gains of $32.5 billion and $16.8 billion in the third In mid-June 2012, a measure of consumer sentiment from and fourth quarters of 2011. the University of Michigan and Thomson-Reuters decreased The next day the government reported that employers for the first time in 10 months and hit its lowest level since added only 69,000 jobs (seasonally adjusted) in May 2012, the December 2011. The owner of an upscale spa and salon in smallest increase in a year, while estimates for the two previ- Arlington, Texas reported that his customers were wary even ous months were also decreased from their previous values. when the economic news was good, given the mixed signals Governments continued to reduce payrolls by 13,000 jobs in on the economy over the previous years. The chief executive May, while the number of long-term unemployed, those out of of Harting Inc., an Illinois-based manufacturer of industrial work for six months or longer, grew from 5.1 to 5.4 million connectors, noted a drop in demand for makers of machine The unemployment rate increased from 8.1 percent in April to tools used in factories around the world. U.S. business was 3.2 percent in May 2012. A separate report showed that U.S. slowing, while business in China and Europe was consid manufacturing growth slowed in May with decreases in both ered to be "non-existent." The recessions in many European production and exports. The Institute for Supply Management countries and the possible fiscal cliff in the United States- reported that its purchasing managers' index decreased 1.3 tax increases and government spending cuts that might occur points in May to 53.5, with a reading above 50 indicating that automatically as a result of the 2011 budget agreement- the sector is expanding. contributed to overall uncertainty. One economist noted that This slow recovery in economic activity had a substantial the U.S. economy was in "low-altitude orbit but threatened by impact on all types of firms. Managers at H. J. Heinz Co., uncontrolled meteors of euro crises and fiscal cliff that might which makes ketchup and packaged foods, spent more on knock it out of orbit."5 The US economic recovery from the 2007/2009 recession was slow. One economist even described it as similar to being in a "low-altitude orbit". Read the case "Measuring changes in macroeconomic activity: Implications for managers" provided and answer the questions that follow. O a). Identify and explain at least four variables discussed in the case that are indicative of the underlying weakness in the US economy in 2011/12 (4 marks). b). Discuss some (at least four) strategies used by businesses (firms) to cope with the weak economy (4 marks)