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Subject: Recommendations Based on Economic Projections - Larson Inc. We wish you all are going to have a wonderful day full of blessings. We want to remind all of you that you all are a great team and we are very proud to belong to this team, plus we are sure that you all give the best of each other to achieve the goals of the organization. As is know for you all, the organization has been facing hard decisions and factors in the economy. Based on economic projections we need find ways to reach out globally; for this reason we are going to recommend three actions to achieve growth and success of Larson Inc. they are: * Larson should prepare for growth based on a U-shaped recovery following years of global recession. We know that the company has changed its organizational structure to a more centralized in which the corporate level personnel approves and reviews decisions of high importance. This type of structure allows assist in employing a more global strategy to all markets, and provides products at lower prices because of the “lower per-unit cost associated with its economies of scale” (McConnell, Brue, & Flynn, 2009, Barriers to Entry, para. 2). Some economists have been predicting a U-shaped recovery (Newsweek, 2010). However, we consider that the company needs to prepare for growth based on a V-shaped and W-shaped recovery as well. * Generate nonprice barriers to entry, including economies of scale, and patents and licenses. Nonprice barriers for Larson Inc. should stay consistent in the economics futures for the next five years. Controlling costs by employing economies of scale, marketing campaigns informing consumers of battery superiority, and maintaining low prices should be the focus. Nonprice barriers to control costs will keep the selling price low until the German economy strengthens, which will be essential in an oligopoly market structure. Promoting Larson Inc. replacement batteries as superior and the battery of choice will ultimately prove effective in meeting market demand. Understanding the customer, and obtaining the necessary licenses to enter the Asian market should be the main emphasis for nonprice barriers in China. * Focus on cost cutting measures in the employee management, assets, facility space utilization, and optimizing costs in R&D and marketing. Costs are vital to this company. Companies that do not meet costs face financial dangers, which could result in the closure of the business. Cost optimization approaches are appropriate in a U-, V-, or W-shaped recovery. To reduce costs, Larson Inc. should institute a no overtime policy and switch from a five-day to a four-day work week; evaluate assets to gain a clear picture of what assets are in existence and which can be cleared; ensure full capacity and full employment by analyzing facility space usage; and cost optimization for R&D and marketing to build brand presence and innovative products (Riley, 2010). We conclude that the recommendations presented to Larson Inc. based on the results of economic futures and expectations will ensure continued success for Larson Inc company. The Recommendations offered in this paper are viable for growth of the company in various alternative economic futures. Given the economic climate and the need to meet global demand, Larson Inc. can strategically use the proposed strategy to maximize production and profits while saving costs, and compete more effectively in a recovery. Furthermore, these recommendations demonstrate that Larson Inc. will survive for any event economic over the next five years but also thrive. Reference Hugh, E. (13 January 2010) Double-Dip Worries in Japan and Germany. Global Economy Matters (Facebook Blogging). Retrieved from http://globaleconomydoesmatter.blogspot.com/2010/01/german-gdp-probably-stagnated-in-third.html Index Mundi (2008). Germany - GDP - real growth rate (%) The World Factbook. Retrieved from http://www.indexmundi.com/g/g.aspx'v=66&c=gm&l=en McConnell, C. R., Brue, S.L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw Hill/Irwin. Retrieved from University of Phoenix, ECO561 – Economics Website. National Bureau of Statistics (2009). China's Gross Domestic Product (GDP) in 2009. China Statistical Yearbooks. Retrieved from http://www.chinability.com/GDP.htm