Macroeconomics has profound

strategic and tactical implications

for Business decision making
across all functional areas of the
firm.
1) Banks stop lending to Oil Companies:
Business Standard 10th October
2008.

2) Government rules out FDI in general

retail: Business Standard 10th
October 2008.
3) Advance Tax shows banking
slowdown: Business Standard
10th October 2008

4) More measures in works to infuse

liquidity: FM–Economic Times
14th October.
Each event some thousands of miles
away, will have an impact first on
global economic environment, and
ultimately on the course of business
cycle and thousands of corporations
around the globe:
 Global economic and political
environment.
 Global social and cultural environment
 Global technological environment
 Global regulatory, Tax & Legal
environment.
 The proactive management of business cycle
movements and turning points to build competitive
advantage.

 The more timely and tactical application of various

instruments to hedge macroeconomic risk
associated with changes in exchange rates,
interest rate, Oil price shocks etc.

 Crafting appropriate strategic and tactical

responses to random macro economic shocks
associated with phenomena ranging from war and
terrorism to currency crises, drought, and so on.
 Macro Economics deals with aggregate
economic activity.

Total volume of output

Employment levels
Saving
Investment
General price level
What is true of the part is not
necessarily true of the whole
Society

Income=Exp

Saving=Investment
Individual

Income = Exp

Saving = Investment