In order to proceed with the project, Canbide should take into account external and internal economic factors, market situation and competition. Recommendations, based on pure numbers, are not enough because organizations are influenced by a number of factors including economic situation in the region and demographics, inflation and legal changes. The future is uncer¬tain and numerous techniques have been evolved to try and limit the amount of uncertainty. Besides recommendations and analysis prepared by a transport management company, Canbide should take into account economic/financial situation in the region. In the USA, inflation does not have a great impact on economic performance of individual companies but can influence the economy of the region and the state. If there is inflation, money performs less efficiently as a standard of deferred payment. Some contracts, however, have cost-escalation clauses allowing the passing on of any increased costs (Frame, 2002). Demand condition is another important factor to consider. The nature of demand conditions for Canbide is important because it determines the rate and nature of improvement and innovation by the firms in the nation. Three characteristics of demand are particularly impor¬tant: the composition of demand, the size and pattern of growth of home demand, rapid home market growth, and the means by which a nation's home demand pulls the nation's products and services into foreign markets. Canbide is a large company operating on the national scale, and for this reason, it is crucial to take into account growth patterns and demand. Canbide should take into account industrial growth patterns which provide an insight into market demand. Because they generally show consumption patterns, production patterns are helpful in assessing market opportunities. Additionally, trends in manufacturing production indicate potential markets for companies that supply manufacturing inputs. Estimating market size with available data presents challenging analytical tasks (Clements, Selvanathan 1996).
1. Clements, K.W., Selvanathan, A. (1996). Applied Demand Analysis: A Survey. Economic Record. 72 (216), 63.
2. Frame, D.J. (2002). The New Project Management: Tools for an Age of Rapid Change, Complexity, and Other Business Realities. Jossey-Bass.
3. Russel, Ch. (2004). Best Customers: Demographics of Consumer Demand (Best Customers). New Strategist Publications; 3rd edn.
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