logo image

Economic Environments Essay

Recession A significant decline in activity across the economy, lasting longer than a few months Trough The stage of the economy’s business cycle that marks the end of a period of declining business activity and the transition to expansion. BoomA period of time during which sales of a product or business activity increases very rapidly. RecoveryA period of increasing business activity signalling the end of a recession. GDPThe monetary value of all the finished goods and services produced within a country’s borders in a specific time period. Economic GrowthAn increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Capitalization In accounting, it is where costs to acquire an asset are included in the price of the asset. NationalisationRefers to the process of a government taking control of a company or industry. InfrastructureThe basic physical systems of a business or nation. Transportation, communication, sewage, water and electric systems are all examples of infrastructure. PrivatisationThe transfer of ownership of property or businesses from a government to a privately owned entity.

4b) Now briefly describe the two different economic environments you have chosen and explain the effects that the two environments would have/did

Need essay sample on "Economic Environments"? We will write a custom essay sample specifically for you for only $ 13.90/page

have on your organisation (P5 part).

Within my selected organisation, Tesco, there are 2 important economic environments that have an influence on business activities. Both economic environments will have a different way on affecting Tesco. The economic environments are growth and recession. Economic growth occurs when more goods are being produced and consumed, and incomes are rising. A growth company tends to have very profitable reinvestment opportunities for its own retained earnings. Economic growth will affect Tesco as it would increase their profits due to more people wanting more products and wanting to spend their money. As people have more money to spend on luxuries instead of the essentials it means that the higher value products will be brought. For example the Andrex toilet rolls will be brought instead of Tesco value, because of this it means more money is being spent in the store which is an advantage for Tesco. Recession occurs when people involved in business become more cautious and: * Customers cut back on spending, and start to save more

* Manufactures and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers. Because economic recessions will put Tesco’s customers under money worries they will only be purchasing from the store, instead of what they want; only what they need. Examples on what Tesco customers would want include: chocolate, ice cream, sweats, and walker’s crisps instead of Tesco value, the luxuries. Examples on what Tesco customers need include: toothpaste, milk, bread and more, just the essentials.

4c) Select at least five different business activities (such as recruitment, financing, product design, supply chain, marketing) and, in a table format, explain how the organisation might have to alter them and why, to suit the two different economic climates (M2).

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy