01 Oct Discussion Question
There is an interesting and revealing situation of Al’s Ice Cream Store on Page 645 of your eBook. This case argues that there is a difference between short term and long term economic fluctuations and the competitive and strategic response of a firm is in context of this difference. Discuss the nature of Al’s business response to cyclical recessions and why his response is appropriate. Also, discuss the nature of cyclical fluctuations and why their irregularity of length, severity, causes and turnaround and lead to great business uncertainty. Use the current economic conditions in the US to identify our place in the business cycle and why the drivers of rapid globalization and technological change adds additional levels of uncertainty.
Hint: Learning outcomes 1, 2, 3 and 5 are important areas of focus. Also, review current news analysis on the state of the US economy (make sure to stay away from propaganda news stories) to gain greater insights.
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