The current status of the economy is directly related to the sale of power tools and how well Able Corporation perform. Tough times and a struggling economy leads to less building and less improving on owned property and therefore, less sales for the power tool business is likely. Besides economic indices, there are other tangentially-related industries and aspects that have an impact on the power tool market and sales.
First, it is important for Able Corporation to understand what effects and strains are related to the battery. Many of the tools have become cordless and the batteries that operate these tools will have direct effect on the users’ opinion of the product. As advances are made in the contained power-source field, Able Corporation will inadvertently benefit. As tools become more complex and require more energy, the average life of a battery has shortened; on average 6 to 48 months, though most do not last that long (Battery Stuff, 2008). Molical has released a new development for a high-power lithium-ion battery with a longer life cycle and higher rate compatibility. The spinel technology, as it’s called, is designed for harsh environments such as cordless power tools, garden tools, and electric bicycles (Roos, 2008).
Gasoline prices have had an effect on the economy as well as manufacturing and are tangentially-related to the power tool industry. Because there is an increase in amount spent on energy to produce the power tools, Able Corporation will have to react to the costs. They have two choices to make up the extra costs; pay the employees less or increase prices. It’s hard to see how increased prices can improve sales, thus the former is usually the case (Forbes, 2008).
Colors, shapes, and logos used in marketing can motivate consumers. Color can help to send a message to the consumer. Customers use colors, shapes, and messages to help the customer remember their name and their products. For example, Makita’s products are always a turquoise and are memorable to the consumer. The color sends the message of a quality and innovative tool and urges the customer to purchase for those reasons stored in their memory (Precision Tools, 2008).
In conclusion, there are many different factors which can affect the Able Corporation a as a business. Electronics and circuit systems can have some effect as they become a part of the power tool through manufacturing. Even the time of the year can have an effect on business as holidays would produce more business or increased sale periods like 4th of July or Memorial Day. It’s important for Able Corporation to take each of those factors into consideration when identifying goals for the organization.
References:
Battery Stuff. (2008) Battery Tutorial. Retrieved July 30, 2008, from http://www.batterystuff.com/tutorial_battery.html
CTU Online. (Ed.). (ca. 2008). Phase 2 Course Material [multimedia presentation]. Colorado Springs, CO: CTU Online. Retrieved July 30, 2008, from CTU Online, Virtual Campus, MPM420. Business Strategy: 0802B-01. Website: https://campus.ctuonline.edu/MainFrame.aspx?ContentFrame=/Classroom/course.aspx?Class=23719&tid;=39
Coulter, M. (2007) Strategic Management in Business. (4th Ed.) Pearson/Prentice Hall: Upper Saddle River, NJ.
Forbes, R. (2008) FAQa: Gas Prices. Retrieved July 31, 2008, from http://www.house.gov/forbes/newsroom/editorials/2008/gaspricesprimer.htm
Precision Media. (2008) Color Psychology & Marketing. Retrieved July 31, 2008, from http://www.precisionintermedia.com/color.html
Roos, G. (2008) High-power Li-ion batteries use spinel tech. Retrieved July 30, 2008, from http://www.eetasia.com/ART_8800534226_765245_NP_1eae5d6f.HTM
