Unit 5 Assignment Career Services - Critical Thinking

In  the business world, critical thinking skills improve judgment, problem  solving techniques, quality of analyzing situations, and hence it  results in a more balanced, informed and reasoned decision-making  process. Critical thinking in the decision-making process helps examine  alternative choices and deciding on the best courses of actions to take  to deal with new developments. Critical thinking is an essential  ingredient to meet firm’s short- and long-term goals since it helps gain  a clearer understanding of best practices to make the right decisions  and improve the effective implementations of the decisions. Thus,  applying critical thinking in decision-making is considered as one of  the most important skills in effective business decision-making process.

Learning  skills for critical thinking in decision-making process are very  indispensable for college graduates. You need to develop and practice  your critical thinking skills that can be applied to new tasks and new  situations. The Career Services has prepared various videos to this  effect on important career skills, including on critical thinking.


After  you have watched the Critical Thinking video, using the Situation,  Task, Actions, Results (STAR) approach that is explained in the video,  critically discuss the following questions.

The  changes in the natures and forms of competitions, macroeconomic  conditions, fiscal policy and monetary policy tools (instruments) affect  the performance of companies. With a Global Fortune 500 Company you  selected under Unit 4 Assignment for your research in your mind, utilize  (demonstrate) your critical thinking skills in your discussion and  analysis of the following questions.

  1. Competition  is generally considered to be a source of growth for companies as well  as for the general economy. Studies confirm that competition leads to  more efficient resource use. Yet, competitive forces also result in  firms being driven out of the market. Moreover, firms compete through  innovations and introducing new products to the market. Some of these  products will be successful and others will end up failures.
    Why  is competition important for efficient use of resources? What can the  company you researched do to compete effectively? How may the company  avoid business failure competitions induce?
    What  determines whether the new products are successful or failures? How  important is innovation and product differentiation as the source of  growth for the company of your research?
  2. Business  cycles lead to fluctuations of macroeconomic indicators, and hence they  have impacts on the performance of firms. Suppose the economy is under  recessionary pressure. The uncertainty about the future causes  households to increase their saving and reduce their consumption. In  another situation, suppose the household saves little and spends most of  its income on current consumption.
    How  does a company prepare to weather the ups and downs of the business  cycles? How will the situations that influence household spending  behavior affect the company you selected for research? How can the  company plan to deal with the economic decline and decrease in household  spending to be profitable on a sustainable basis?
  3. Fiscal  policy deals with the government's spending and taxation practices. The  changes in fiscal policy affect households and firms (companies) in the  economy. Monetary Policy refers to the actions of the Federal Reserve  to control (regulate) money supply to influence the rate of interests in  the economy. The change in the rate of interests affects companies and  households. Suppose the Federal Reserve increased the money supply to  reduce the rate of interest.
    How does  this affect the company you selected for your research? How can the  company prepare itself to deal with the changes in fiscal policy and  monetary policy? What actions do you suggest for the firm to undertake  to ensure success on a sustainable basis during the changes in  macroeconomic environments pertaining to fiscal policy and monetary  policy?

    Your  assignment should have a cover sheet with the following information:  Title of the paper, Your Name, Course Number and Section Number, and  Date.
    • It must be a minimum of 2 pages long (excluding the title page, reference page, etc.).
    • Be sure to include the criteria located in the rubric below within your paper.
    • It  must be APA formatted with citations to your sources and your last page  should list all references used. For assistance on APA format, visit  the various writing resources, accessed under the Academic Tools area in  the left navigation pane.
    • You  must use a variety of three objective, high quality, and current  sources. Peer-reviewed articles, articles published in journals,  textbooks, and library resources found in the library are examples of  high-quality resources.
    • Note that Wikipedia, Investopedia, etc. are not considered reliable resources for this research.