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Milestone 3 Essay

884 words - 4 pages

Milestone Three 1

Bel-Air Consulting, Recommended Improvement Areas - Milestone Three
M. B. Abney, D. Gerdts, N. Tavarez, C. Hayden, K. Fernandez
ECO-561 Economics
G. Kropkowski
University of Phoenix
March 30, 2010

Milestone Three 2
Bel-Air Consulting, Recommended Improvement Areas - Milestone Three
The economy in America continues its path of a slow recovery, yet changing ever so slightly. It really is nothing more than a question mark when referring to the prediction of where the economy is going in the future and economist continues to try to make that accurate prediction hoping for the best. Key areas within the economy to keep a watch out for are things such as the affects of ...view middle of the document...

These are just a few examples of how the world’s foreign economies affect the products Kudler Fine Foods offer to its higher-class consumers.

Milestone Three 3
Natural disasters can play a significant role in affecting the prices of organic products as well as the availability of certain produce. The natural disasters that can affect availability and pricing are droughts, floods, and earthquakes. Since the above-mentioned natural disasters are impossible to predict, it is hard to guess when these natural phenomenons will occur and therefore, affect pricing and availability of organic produce. Once any of the three natural disasters occurs, the price of products affected by the disaster will quickly climb due to the limited availability. Other factors that will affect the supply and price of products Kudler offers is the political mechanisms such as trade agreements.
Kudler Fine Foods continues to look at future expansion even in an economy that is currently rebounding from a recession. Kudler Fine Foods always positions itself to stay within its financial means. Because Kudler owns two of its facilities, expansion is eased by having the collateral that is necessary to finance additional ventures. Kudler realizes the importance of leasing two other buildings for tax purposes and is currently pursuing the purchase of a fifth building in the San Francisco area along with plans to expand in the San Diego area.
Kudler’s excellent credit and long-standing relationship with Crimson Credit Union allows for a low interest rate and 15-year credit term. Economic experts have expressed that the economy has grown by 5.6% last quarter and Kudler fine foods is hopeful this trend will continue as they expand to other locations across California. Each location is financially...

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