External Factors Of Chick-Fil-A

Secondly, purchasing power od households on fixed income decline, as inflation tends to result in more unequal distribution of income as those on lower incomes find their wages do not rise as quickly as those on higher incomes. In times of high inflation household tend to purchase real assets that retain their real value since their prices rise faster than the inflation rate. Finally, another negative impact is the income tax earners suffer from fiscal drag pay rises to combat inflation put them into higher marginal tax brackets. This means as employees’ nominal wages increase with inflation their real wage (purchasing power of nominal wages) may remain constant. Since inflation reduces the incentive for households to save, it causes a shortage of savings for firms to borrow.

INTRODUCTION Economic growth is defined as the increased capacity of an economy to be able to produce goods and services in comparison from one period of time to another. This is figured by the genuine Gross Domestic Product (GDP) and development, and is measured by utilizing genuine terms such as “Balanced Inflation”. These terms help to remove any distorted views on the perceived outcome of inflation on the cost of merchandises produced. Likewise, Economic growth is related to the high expectations in a person’s standard of living. If the standards are high, it wouldn’t be beneficial for the economy as the working class individuals will face a lot of trouble.

Having a wide gap between the upper and lower class doesn’t benefit the economy instead has a negative impact on it. For example, according to the Washington Post, “As income inequality grows, more and more resources are concentrated in the hands of the wealthiest. So, the idea goes, the wealthiest are better able to steer policies in directions that protect inequality at the expense of growth”. Because most of the wealth is in the hands of individuals who are at the top they have the power to do things their way. On the other hand, consumer spending plays a role in the economic growth of a country.

“As inflation rises, every dollar you own buys a smaller percentage of a good or service. When prices rise, and alternatively when the value of money falls you have inflation” (Hayes). For this reason a minimum wage increase would never work. If employers are paying employees more then they will raise costs to offset the added expenses. This will cause the buying power of the dollar to decrease, making it so people who received the minimum wage increases will not be making any more money than they otherwise would’ve, and people who did not have their pay increased, will be making even less money then they had used too.

The law posits that as supply increases, while other things are kept constant, there is a decline in price and vice-versa. As demand increases, while other things are kept constant, the price tends to increase and when demand declines, the price declines. The economy achieves a state of equilibrium between quantity and price when there is a balance between demand and supply. The law of supply and demand has a big impact on the labor market and consequently, the economy. An increase in wages leads to a decline in supply of goods and services because labor is considered as a business cost.

Inflation raises every year while minimum wage does not. A con this article looks at is the layoff rate. If the employer has a small budget and minimum wage is increased the business may not be able to pay all of their employees at the higher rate. As a result, the business will have to layoff their employees to compensate for the increased pay. So, while some employees may be making slightly more money, others will be left unemployed.

Inflation is the rate at which the general level of prices for goods and services is rising, and, then purchasing power falling over a period of time. When price level rises, dollar buys fewer goods and services. Therefore, inflation results in loss of value of money.

This will persuade businesses that seek profit to increase the production of the goods/services. If the supply of these goods /services begins to exceed the demand, the market price falls and the production of these goods/services reduced. This will affect the profits of the manufacturers, but production will still continue even for smaller profits. Markets function without having any fixed program or plan. Buyers and sellers act based on their personal desires, abilities and incomes.

CHAPTER 2 LITERATURE REVIEW INFLATION (InvestorWords, 2015) stated that inflation is the increase in the general price level of goods and services in economy, normally caused by excess supply of money. Inflation usually measured by the Consumer Price Index (CPI). When the cost of producing goods and services goes up, the purchasing power of dollar will decrease. A customer will not be able to purchase the same goods and services as he/she previously could.

The act of opening up economies is known as "free trade". It will generally benefit the larger wealthier countries whose big companies such as Apple, Microsoft and Nike are looking to expand and sell their goods worldwide. In the one sector where developing countries have the most to gain such as agricultural goods the wealthier countries will maintain the highest level of protection of their own markets. Free trade will bring down trade barriers such as tariffs, tariffs are a tax imposed on imported goods and services. They are used to restrict trade between countries as they increase the price of imported goods and services making them more expensive to consumers.

The Government should stay away from any kind of minimum wage policy. Raising the minimum wage might help the lower 20% of people of the nation

As CEO of the McDonalds Corporation improving the quality and efficiency of a fast food restaurant would start with providing customers with efficient and flexible service that can easily adapt to social and economic changes. In these days and times customers are more demanding and selective about the services they receive. Therefore, delivering customers with high quality and efficient services are important. Operations can be improved by coming up with a strategic plan to improve inventory system to reduce food service cost through better menu management along with understanding the needs and attitudes of customers. It is also important to stay current with technological and marketing innovations to provide customers with high quality services.

The book has four important but basic sections comprising the totality of what the author wants to convey: (1) Essence of a Compelling Culture A compelling culture is defined in the book as a combination of people comprising the whole of the organization including: the guest or customer, the team member, the operator or owner, and the staff member. The Culture of Chick-fil-A as defined by Mr. Cathy – a man of faith was to sell chicken, be faithful stewards, have a positive influence on others, and ultimately to glorify God. (2) Building a Team that creates a Competing Culture Mr. Cathy looked at each person and gave attention in an individualistic way. He aspired to hire the best talent and train and mentor that talent, cultivating and fostering loyalty and commitment.