Understanding the decision-making process of investors is an important exercise that should be undertaken by researchers before making any assumptions on the impact of Trump’s tweets in the business environment. Investors engage in research activities, especially when venturing into a new market to understand the opportunities and challenges, which can accrue following their decision to invest in a certain market. Financial information is defined by the data that can be accessed by stakeholders, which enable them to understand about the company performance. For instance, the profit and loss account for a financial year enable individuals and the public to interact with different elements that could have affected the ability of a corporation to make an informed decision regarding the operational performance of Company X. From this observation, it is imperative for company managers to interact with information that allows them to influence the decisions of individuals and access funding from potential investors.
Non-financial information comprises the tweets and other irrelevant content that can dissuade individuals from making informed decisions regarding the application of rules in the business environment. When a company ventures into a new market, different market players to have certain opinions that they use to distract consumers from the invasion. In this regard, company managers should be ready to address the concerns raised by different people regarding the quality and ability of the commodities to solve their needs. During this period, influential people such as President Trump may tweet about the company operations, a move that may influence the perspectives of consumers towards the organization. When launching a new product in the global business environment, it is imperative for business leaders to conducts a series of studies that will elevate the position of the corporation in the market. From their market analysis, it is possible to discover the challenges that can accrue in the business environment. Likewise, it is important for the people to discover the various approaches, which can be used to influence people’s needs. From this realization, business leaders should consider various options that can be explored to improve the outcomes of events in the business environment.
The emergence of social media and the internet has made it easier for individuals to access information regarding a wide range of subjects in the business market. For instance, an investor can read through the Bloomberg reports to understand the market changes that occurred due to activities in the Wall Street trade market. From this observation, investors can verify information from President Trump’s tweets and make informed decisions that can influence their perspectives towards the existing opportunities in the business environment (Drake, Roulstone, and Thornock, 2012). Understanding people’s needs requires corporations to work closely with different people who understand the measures that can be taken to resolve a crisis when it occurs. Due to the constant development and innovation in the technological world, it is possible to understand the various approaches that can be explored to mitigate a crisis. Therefore, engaging different stakeholders in the business environment allows individuals to understand the various techniques that investors can use to sieve through the available information in the internet.
Social media is among the leading sources of unstructured data where individuals interact with information during their unintentional browsing sessions. In this regard, Twitter is one of the visited platforms after Facebook where the public seeks to obtain information about the occurrence of events and how they can affect their lifestyles. From this observation, many financial analysts rely heavily on Twitter to make decisions because of its ability to present updated content regarding any event taking place around the world (Fenn, 2019). Over the years, U.S. President Obama and Trump have been using Twitter to connect with their citizenry and inform them about useful information that can change their livelihoods. While President Obama was slow on his Twitter usage, President Trump heavily uses the platform to express his opinions concerning different topical items that differentiate him from his predecessor. Due to his objective nature, Trump’s Tweets are believed to offer significant pointers for investors, where they can benefit or suffer unanticipated consequences resulting from his outburst.
The effect of Trump’s tweets can be measured by observing the changes that may be introduced in the market to overcome numerous challenges, initiated by changing consumer behaviour. While the study has narrowed down on Trump’s tweets, which discuss finance, economics, public policy, and certain companies, there is a need to understand the various elements that contribute towards the many changes witnessed in the business environment. Juma’h and Alnsour (2018) argue that Trump’s microblogging behavior has a significant impact on the financial market. In their part, company managers should focus on the daily conversations on Trump’s timeline to develop measures that can cushion their organizations from any threats emanating from changing consumer behavior. However, intense analysis on the Trump’s tweets reveals that there is an insignificant threat from the tweets because of his nature that advances his personal agenda rather than the people’s needs. Even though many discussions have pointed out an imminent threat in Trump’s microblogging activity, business leaders should pay attention to real threats such as competition, which can affect the outcomes of events in the modern business environment.
When engaging in research activities, it is important to understand the various elements that come into play when social media is mentioned. In this case, one of the issues that revolve around the heightened use of social media in the contemporary world comprise of the available technological resources and the willingness of corporations to invest in Research and Development (R&D) to discover the various items that affect the outcomes of business activities in the business environment. Many people now use Twitter to access information even though Facebook commands a significant following compared to other social platforms. From this realization, Twitter has become a reliable social platform where individuals can access spontaneous information depending on their individual needs. On the same note, it is imperative to observe the different approaches that company managers should use to connect with their target audience regarding challenges that affect their livelihoods in their immediate environment.
Donald Trump has 61.2 million followers on Twitter, a move that indicates the significance of his tweets on the platform and beyond. Given his position in the world today, many individuals follow closely on his statements and attempt to draw assumptions that can be used to understand the different aspects that can be affected by his attitude towards any topical issue. From this observation, it is possible to note that the President uses the platform to set the agenda to the public, a move that enables him to control the narrative. Recently, the President has assumed a different pathway that focuses on his re-election agenda (Forex Capital Markets Limited, 2018). Even though his commitment to the re-election promise majorly dwells on the deliverables that he has managed to achieve for his term, it is possible to indicate that his ability to tweet compels many business leaders to make informed decisions. For instance, he recently talked about how his policies have stabilized the economy and enabled it to create employment opportunities for people across the country. On the same note, his agenda dwells on calling people whom he believes are responsible for the outcomes in the country and beyond. Therefore, his decision to target certain organizations is defined by his flawed interactions with specific executives or different perspectives that affect his understanding of the mentioned organizations.
Financial markets respond negatively to unanticipated changes because of their ability to create a climate of fear that affects individuals based on their ability to make informed decisions in their immediate environment. Twitter allows the spread of information faster than any other social media platform because of the ability of individuals to share brief and precise information compared to other social networks in the world today. In the modern world of fake news, it is impossible to regulate what individuals can access at any given time because of the different changes that affect the ability of the public to interact with different information on the internet. When the Twitter community received information about the health of POTUS, who was allegedly involved in different explosions, the markets plunged within a short while. The Dow Jones Industrial Average significantly dropped while the S&P 500 lost an approximated $135 million in value. Looking at these statistics reveals that the market is affected by different outcomes, which compel individuals to make rush decisions that contribute to the prompt market changes.
While scholars continue to examine Trump’s tweeting behaviour, which manipulates the market, it emerges that the public should review the actions of the President, which disrupt the financial environment. Many researchers believe that Presidents and their counterparts who include members of the Federal Reserve and company executives of public traded corporations should not convey any information that can affect the financial markets. While Trump’s tweet is not ethical, there is a need to observe the possible impact and how corporations are affected by the move, which interfere with the outcomes of events in the business environment. Understanding his decision to trash certain companies can only be approached from the concept of his decisions, which have a significant impact on the overall perspectives of individuals towards life. Market manipulation is believed to be an illegal act, especially coming from a President who should be responsible for the stability of the financial market and the economy as a whole.
President Trump joined Twitter on March 2009 and has since gone to amass 61.2 million followers and over 42,000 tweets. Over this duration, the President has had conflicts with various organizations, which have led to the destabilization of the market and their performance in the business environment. Any altercation the President has with specific organizations is believed to have a significant impact on the changes that should be introduced in the market with a special focus on the ability of corporations to anticipate risks in the business environment. One of the reasons that Trump uses Twitter heavily is to counter the fallacy of biased media that changes information to suit their preferences. He believes that he can use the platform to reach and connect with Americans directly without an intermediary, which may alter the contents of his information. Even though critics believe that it is wrong for a POTUS to involve themselves in personal interests, President Trump is not someone who can be turned down by the personal beliefs of individuals.
Immediately after being elected to office, President Trump trashed Boeing’s government contract claiming that it is expensive. In a quick rejoinder, the airliner recorded a 1% loss in anticipatory of the company losing its relations with the new administration. However, the corporation recorded an improvement later after the behaviour proved to be a bluff. In another instance, Trump focused on Boeing’s key competitor where he identified Lockhead Martin’s focus to enable the government to cut down costs of producing aviation machinery. From this tweet, Martin’s realized a 4% loss because of the anticipation that it would lose its contract with the government after he had assumed office. Even though the loss stabilized after the closing session, the outcome demonstrates the impact of Trump’s tweets on the government relations with its contractors. On the same note, Boeing recorded a slight loss in its products where it had anticipated numerous changes to take place before the situation was rectified. Other companies such as General Dynamics realized losses, demonstrating the impact of Trump tweets on the outcomes of events in the business environment.
In a subsequent tweet, almost a week later after thrashing Lockhead, President Trump disrupted the stability in the defence contracting markets where he mentioned how Boeing and Lockhead had inflated their budgets to allegedly rob the government. Even though his tweets criticized the quality of the delivered aircrafts, many shareholders in Boeing and Lockhead disliked the approached used by the President to pursue his interests. From this realization, the tweet created a volatile business environment for the two leading aircraft government contractors, causing panic among their shareholders. Investors follow closely Trump’s tweets because of their ability to foresight the market. However, on many occasions, the tweets have turned out to be a bluff because of their ability to cause temporary panic that affects individuals in their immediate environment. One of the aspects that contribute to the inability of Trump’s tweets to have a significant impact on the market is the limited research taken into consideration before sharing the tweets with the public. Therefore, Trump’s tweets have a limited shelf life because of their temporary impact that affects the market and organizational performance.
Traders and investors have become concerned of the impact of a Presidential tweet on the performance of corporations in the market. In this regard, the experts have acknowledged the fact that no organization is free from the short-term pricing fluctuation that is initiated by President Trump in his tweets. Over the years, the Presidential tweets have had a significant impact on the overall performance of companies but within a short-term. Even though the process of restoring public confidence after the Trump damage may take time, it is a costly affair that is almost irrelevant. Given his platform, the President should elaborate the policies that would be used to improve the situation, to avoid any instances where the interactions between organizations and their shareholders are put into test. Unlike government contractors who heavily rely on the state for business, public traded corporations do not. Nonetheless, no public company is immune to the Presidential tweets, which have a way of disrupting the market.
Given the fact that the public corporations rely on the public to make profits, any information shared to the citizenry can influence the outcomes of events and significantly affect the performance of organizations in the business environment. A recent study conducted by the Wall Street Journal called the Trump Target Index demonstrates the impact of Trump tweets on the performance of certain organizations immediately after the election year. In this case, Toyota Motor Corporation recorded a series of losses after the President wrote on Twitter that it should build its plant in the U.S. instead of Mexico or encounter significant amounts of border tax. Five minutes after the tweet, the corporation lost $1.2 billion in market cap, an indication of the impact of Trump’s tweet on company performance in the market. Within a period of six months after the tweet, Toyota lost an approximated US$12 billion in stock, a move that was attributed to the high taxes that would be charged after its establishment of a plant in Mexico. From this realization, it is evident that many organizations have created measures that they can use to counter the negative tweets propagated by Trump, where they can claim control of the situation and reassure the stakeholders about their ability to meet their expectations.
When Nordstrom (JWN) removed Ivanka’s fashion store from their line, Trump sent out a series of tweets condemning the American Retailer for the decision. Unlike Toyota, Nordstrom’s stock dropped within a minute but stabilized and even improved after the closing session. This is one of the most unique instances where Trump’s tweets have had a positive impact on the performance of an organization in the business environment. However, concerns from several parties criticize the decision of the President to attack independent corporation that focus on improving the lifestyles of individuals without seeking any confrontation with the government (Penington & Kelton, 2016). Even though Trump is committed to express his opinions, there should be a law condemning him from doing so because of the unpredictable nature of the volatile financial market. Over the years, Toyota, Nordstrom, Boeing and Lockhead are not the only companies that have been implicated in the Presidential tweets. Many corporations including Amazon have encountered a dress down with the President that saw them lose billions in stock because of a misunderstanding and state of panic created by the 280 characters on Trump’s timeline.
It should be noted that the valuation of a country’s currency comprises of different elements such as economic stability, monetary policy, and economic growth indicators among other aspects. From this realization, any Presidential statement touching on the foreign policy and economic confrontations with other countries can have a significant impact on the value of a currency in the global business environment. Twitter statements by President Trump are untamed because of his unpredictable nature that affects the ability of the market to stabilize and realize its objectives in the international market. Trump’s interaction with Mexico have been flawed because of the possible disagreements that were featured in the 2016 Presidential U.S. election. From this realization, Trump’s commitment to build a wall across the U.S. border has seen him attack any organization that focuses on meeting the needs of its Mexican consumers. For instance, in 2017, Trump tweeted that General Motors had sent a version of the U.S. Chevy Cruze model to Mexico, indicating that the company would have to pay significant amounts of border tax. Following the tweet, competitor Ford cancelled its US$ 1.6 billion project that would create 2,800 jobs in Mexico. However, GM recorded an improvement in its stock shortly after the announcement, a move that indicated its ability to manoeuvre the rough business environment created by President Trump and his administration.
Conclusion
Usually, President Trump draws a lot of attention from his tweets that appear aimlessly because of their inability to maintain a certain level of specificity in the business environment. In many of his tweets, the President often refers to the equity benchmark where he discusses the strength and consistency of the U.S. economy against other countries around the world. When this happens, the media, political commentators, and financial analysts focus on his choice of words dissecting each segment to draw any meaningful information that can be used to make informed decision (Yang, T., & Yang, 2017). The outcome is usually conveyed to investors who use the statistics and existing measure to make decisions that focus on improving the available situation in the business environment. Even though the President is expected to give hope in dire situations and reassure the investors by putting in place policies that address their fears, Trump is viewed as a non-conformist individual who pursues his happiness at the expense of the citizenry (Ichev, Marinc, & Massoud, 2019). By so doing, it becomes impossible for public corporations and government contractors to make independent decisions that are not aligned to his views. Therefore, this study serves as a call to action for investors to become actively involved in the activities that should be used to overcome problems in the world today.
