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Business and Economic Policy - Coggle Diagram
Business and Economic Policy
Interaction between Business and Economic Environment
• Economic context: Macro and microeconomic variables affect businesses (GDP, inflation, unemployment, exchange rates, policies, etc.).
• Adaptation: Businesses maximize profits, reduce risks, and seize opportunities depending on the economic cycle.
• Environment analysis: Monitoring indicators, public policies, and global trends.
• Business influence: Creates jobs, transforms sectors, and has an economic and social multiplier effect.
• Economic policy: Direct impact on business climate; coherence and transparency attract investments.
• Business participation: Chambers and guilds help influence public policies.
• Diversity: Effects vary by size, sector, location, and technology level.
• New dimensions: Sustainability, digital transformation, and social changes.
• Systemic view: Constant adaptation and strategic adjustment for survival and growth.
Economic Cycles and Strategic Planning
• Economic cycles: Phases—expansion, peak, recession, recovery.
• Expansion: Growth, increased consumption and investment; risk of over-indebtedness if poorly managed.
• Peak: Highest activity, inflation pressures possible; need for cautious strategy.
• Recession: Demand, employment, and confidence decline; focus on efficiency, liquidity, and resilience.
• Recovery: Gradual reactivation; opportunity for careful repositioning.
• Strategic planning: Integrate macroeconomic analysis and multiple scenarios.
• Sectoral impact: Different sectors and international markets affected unevenly.
• Competitive advantage: Proactivity, flexibility, innovation, and long-term vision.
Economic Policy and Business Decisions
• Economic policy: Government strategies for growth, stability, employment, and equity.
• Business impact: Affects investment, pricing, hiring, innovation, and expansion.
• Monetary policy: Interest rates influence credit and investment.
• Exchange rate policy: Currency value affects costs, competitiveness, and contracts.
• Fiscal policy: Taxes, subsidies, and incentives modify profitability and costs.
• Trade policy: Agreements and tariffs affect competition and market access.
• Social/labor policy: Regulations impact labor costs and organizational culture.
• Unstable contexts: Need for risk management and flexibility.
• Active participation: Businesses must engage in policymaking to favor development.
Uncertainty Environments and Innovation
• Uncertainty: High variability in economic, social, political, and technological conditions.
• Risks: Decisions made with incomplete info, requiring rapid adaptation.
• Innovation: Strategic advantage for adaptation, value creation, and leadership.
• Innovative culture: Critical thinking, collaboration, tolerance for failure.
• Tools: Scenario analysis, risk management, tech monitoring, agile methodologies.
• Opportunities: Innovation in products, processes, and business models.
• Social/environmental leadership: Innovate facing global challenges.
• Summary: Uncertainty drives innovation; flexible and visionary culture is key.
Business Ethics and Economic Sustainability
• Business ethics: Principles guiding relationships with stakeholders (workers, clients, community).
• Practices: Labor respect, honesty, legal compliance, anti-corruption.
• Importance: Strengthens reputation, trust, loyalty; avoids legal and image risks.
• Economic sustainability: Long-term value without compromising future resources; prudent management.
• Integration: Corporate social responsibility, ESG criteria, SDGs.
• Benefits: Resilience, access to responsible markets and investors, alignment with social demands.
• Conclusion: Ethics and sustainability are essential pillars for modern business success.