ECON 359 Development Economics Homework 4 Suppose you are g

ECON 359 - Development Economics Homework 4 Suppose you are given the information below. Use the Harrod-Domar Model to answer the questions. 1. K 500,000 d 0.06 s-0.30 v-0.60 a. Calculate total output. Show your work. b. Calculate the change in capital stock. Show your work. c.Calculate the new level of capital stock in the next period. Show your work. d. Calculate the new level of total output in the next period. Show your work. e. Is this economy growing or contracting? Explain your answer. f. What does the Harrod-Domar model imply about economic growth? Explain your answer.

Solution

I was previously working for a company that had a business intelligence platform and we were selling it to the companies in the manufacturing industry. This company is just 4 years old and it has around 90 employees. They have a presence in the United States and India. The company has built an excellent product but they were not able to sell it. The first reason was that the person who was heading the sales and marketing activities in the company. He was not qualified for the job and he just assumed things before making decisions. This company definitely needed strategic planning to produce some excellent results. They should have created a plan to improve the sales and to decide which markets they need to enter first to generate business. I feel this was required because:

The sales team had no proper guidance

I do not know whether a different company in a similar situation would have engaged in strategic planning because the decision will be made by the top management. If the top management is sure of the objectives and the vision of the company then they would have definitely involved in strategic planning. There should be a person in the company who is ready to take the initiative and get the work done for the company and that person should have the decision making power in the company. The company should know where they need to invest and what market to target and who our customers are. If this is clear then strategic planning makes sense otherwise it is just like throwing stones at the sky.