Comparison Between Macroeconomic and Microeconomic Essay

Comparison Between Macroeconomic and Microeconomic - Essay Example Macroeconomics also analyses some sub aggregates like spending on consumptions and investments and their components. These are also treated to be the components of GDP or Gross Domestic Product. The effect of fiscal as well as monetary policy is under the purview of macroeconomics. It can be characterized as modeling of sectors on the basis of some micro components. The factors that can shed its impact on the long term growth prospects as well as can affect the level of national income fall under the domain of macroeconomics. The factors that have such kind of potential include modifications in technology, the rate of capital accumulation and augmentation of the labor force (Cencini, 2005, p. 2). The models of macroeconomics can be used to find out the trends in some specific sector and forecast or anticipate the future results. These forecasted results determined using those models are used by the government as well as for the large ownership corporations as this kind of analysis wi ll help them in their path of development and build new strategies of business that suites their purpose. Some of the famous macroeconomic models include Aggregate demand, the Aggregate supply model and the ISLM model. The once divided fields of monetary policy and the business cycles led to the emergence of macroeconomics. The contribution of J.M. Keynes to macroeconomics cannot be ignored. His book â€Å"General Theory of Employment, Interest and Money† depicts the key concepts of macroeconomics. He offered a modern theory of economics which dealt with the problem on why the market is not clear and eventually a school of economists evolved who seemed to follow the Keynesian theory (Andolfatto, 2005, p. 2). Microeconomics deals with the basic elements in the economy. The households and the firms are treated to be the agents involved in the circle of microeconomics.

Value Chain Analysis of Michelin Group Essay Example | Topics and Well Written Essays - 750 words

Value Chain Analysis of Michelin Group - Essay Example As per Value Chain Analysis there are specific activities that cumulatively determine the position of the company. These are the primary and secondary activities. Primary activities include inbound logistics, Operations, Outbound logistics, Marketing and sales and Service. The Support activities are Procurement, Human Resource Management, Technology Development and Firm Infrastructure. (Roberts, 134-35) The Value Chain Analysis of Michelin would be based on these criteria. The position of Michelin in the tire industry is very well placed. The main aspect of the success story of Michelin is that they produce quality materials at an affordable price and is wonderfully backed by very efficient team of after sales service. In addition to that Michelin is helped in an extremely positive manner from the field of advertisements. The Michelin Man can be enumerated as a icon in not only the tire industry but the essence has reached beyond that. However, it can be mentioned that the inability to tap the heavy automobile industry in a full extent remains a greater weakness of the company. In this context it should be mentioned that the Annual Report 2006 promises to better this particular sector. In today's world market of tire business Michelin holds a very prominent presence. With the current market being a $100 billion industry the position of Michelin is noteworthy. These two leading figures were followed by Goodyear with 17.2% of the market share. (King, 122) The rest of the market segments were divided among other average sized manufacturers with a cumulative amount 28.8% of the market share. Further more, it was reported that an additional 17% of tire sales was instrumented by local producers. (Lock, 245-46) Thus being a huge player if the world tire industry the effective Value Chain Analysis of Michelin becomes more important. The Value Chain Analysis can be enumerated as below: Inbound logistics of Michelin shows that the raw materials and storage and handling c harges of materials increased by about 12% from 2005 to 2006. On the other hand it was found that the Operations relating to the production of products was almost at par with the last few years (2002-2006) with an increase of 6%. (Annual report: 2002, 201)The same cannot be said for the operations outbound segment and there was an increase of 5% on the valuation of production channeling. However the Marketing and sales indicated that the company showed an additional usage of 9.6% for the means of promotion and advertisements. The services sector under the determination of Value Chain Analysis showed that the total valuation was raised by about 3% reflecting the developing market structure in favor of the company. (Kar, 201-205) The support activities when taken into consideration also show a similar amount of development in terms of net valuation for the company. The procurement factor reflected the variables that enabled Michelin to get the best possible materials for the lowest pr ice and in this context it ca be summarized as a net gain of 15% in relation to 2005.