A business plan is a statement that is formally written and contains the set objectives of the business, the reasons as to why they think they are achievable and an outlined plan for reaching the set goals. They are very useful when a company is planning to invest and also when implementing a change. Monetary variables are those factors that are directly influenced by the availability or scarcity of money (McKeever, 2010). Money supply in the economy is the availability of cash in a certain economy during a specified period of time. Money supply has to be monitored strictly due to its impact on price levels, business cycle and inflation. Too much money causes inflation in the market whereas too little money causes a strain in the economy.
Money demand is the key monetary variable. It is defined as the desired holding of financial assets in form of cash or bank deposits (Johnson, 2006). Corning incorporated is the biggest company in the world in specialty glass and ceramics. Corning is a company that is based on technology and experience for many years to produce quality products. The company collaborates closely with other industries such as mobile emissions control and life sciences to better its products. Corning must rely on the information obtained from monetary variables in order to make informed decisions about where, when and how to invest.The monetary values are good indicators of how the future looks like and they can be used to formulate a pattern and foresee the market situation in the future.
Interest rate is the rate at which interest for some money borrowed from a lender is paid back by the borrower (Johnson, 2006). Interest rates affect the business plans of a company since when the rates are high, the company avoids loans but when they are low, companies pick up loans more frequently. This affects corning’s business plan either positively or negatively depending on the interest rates.