Bancfirst External Environment - Research Paper Example

Factors within this environment include suppliers who provide the company with its resources to carry out business. The clients are another factor, with additional factors, such as competition, prospects of growth, demand stability, and dependability influencing the client base. Marketing intermediaries dictated by intermediaries who help close business sales are another micro-environmental factor. Yet another environment is the macro-environment, which is uncontrollable. The business must adapt to these factors, including social, economic, political, legal environment and, in addition, technical environment. Bancfirst is most likely to be affected by factors that influence their client base, such as competition and prospects of growth. Additionally, macro-environment factors, such as the economic environment and legal environment will affect the operations of the first bank on a day-to-day basis (Tracy, 12).

1. What are the factors that caused the demand curve for houses to shift to the right? How did this affect the equilibrium price?

If there is an increase in consumer income, the demand for the house will go up, and as such, the demand curve shifts to the right. An increase in income thus shifts the demand curve right. Another cause for a demand curve shifting to the right is changes in preference, with the recent high price houses coming with increased comfort and security, making consumers buy more of these sorts of houses. The demand curve for houses has shifted to the right. Finally, the demand curve may be shifted by changes in expectations. If clients expect to have a job for a long time, coupled with increased income, then demand products will increase and, as a result, the demand curve shifts to the right. The demand curve shifting to the right on houses caused the equilibrium price for houses to rise (Tracy 11).

1. Which factors created the shift in the supply curve? How did this affect the equilibrium price for houses?

The supply curve for Bancfirst was affected by various factors. Changes in the supply curve occur when product supply is affected by factors other than its price. Increased technology caused the supply curve to shift to the right, while the number of clients wanting to buy houses caused the supply curve to shift to the right. The price of substitute investments also fell, causing the supply curve to shift to the right.  The increase in supply caused the supply curve to shift to the right, thus causing a fall in the price and an increase in the number of loans to buy houses (Tracy 19).

1. There are four stages in the business cycle: prosperity, recession, depression, and recovery.  Where was the U.S. economy when the housing crisis began? Where are we today?

When the housing crisis began in the United States, the economy had just begun to go into a recession. A recession can be defined as a significant slowdown in various economic activities, which takes more than a few months, with its effects being seen in industrial production, real income, real GDP, and employment. This recession was said to have ended in June 2009, with the economy entering a depression. At this point, the US economy is in recovery, with house prices beginning to rise again. The end of the recession was defined as the period at which the economy reached its lowest point, not when it recovered to its former vigor (Tracy 22).