For this assignment I will have to
evaluate the effect of different
economic environments on business
organisations. This assignment has 1
task which is separated into two
different parts. Part 1 requires me to
describe the influence of two
contrasting economic environments on
business activities within your selected
organisation. For part 1 I will have to
write up a report. The second part of the task requires me to compare the challenges to
selected business activities within a selected organisation in two economic environments.
For part 2 I have to also make report but I will also be interviewed on the work that I do.
This interview will be carried out after I have handed in my work.
Task 1, Part 1
For this task I have to describe the influence of two contrasting economic environments on
business activities within my selected organisation, There are different phases in a business
cycle, there are main 4 phases a business goes through they are : Boom, Recession,
Recovery and Decline.
Boom:
A boom period is when sales increase, wages increase and the GDP also increases, in a
boom period the productivity period is at a high and it is a “significant output from the
population” (quoted from the business dictionary) this is a period when the business has a
really successful period and the business his getting higher sales with high profit being
made, this is also a period when employment increases which would be better.
Recession:
A recession is a downfall in the economy and it lasts much longer than a few months, for
businesses income is lows as
traders struggle to trade, employment level decrease because of business firing staff in
order to save money. This also results in the national GDP of a country decreasing. A
recession is caused by high interest rates which cause people not to be able to lay back
loans due to the very high interest rates. In this period people also decide to spend less as
they try to save money, a recession is sometimes caused due to inflation.
Recovery:
Recovery usually signals the end of a recession or a slump, however, you cannot usually
recognise a recovery period has begun until after a few months of it, from a recovery period
you can see just how far or well the business is doing since or after the recession, in
recovery period the country's GDP slowly increases and employment levels increase again as
businesses are doing well and need to hire more staff as the business is growing.
Slump:
Slump is the beginning of business decline and activity of business also declines, in the loan
industry lending policies are tight as getting a loan is difficult and overall lending volume will
decrease.
1
evaluate the effect of different
economic environments on business
organisations. This assignment has 1
task which is separated into two
different parts. Part 1 requires me to
describe the influence of two
contrasting economic environments on
business activities within your selected
organisation. For part 1 I will have to
write up a report. The second part of the task requires me to compare the challenges to
selected business activities within a selected organisation in two economic environments.
For part 2 I have to also make report but I will also be interviewed on the work that I do.
This interview will be carried out after I have handed in my work.
Task 1, Part 1
For this task I have to describe the influence of two contrasting economic environments on
business activities within my selected organisation, There are different phases in a business
cycle, there are main 4 phases a business goes through they are : Boom, Recession,
Recovery and Decline.
Boom:
A boom period is when sales increase, wages increase and the GDP also increases, in a
boom period the productivity period is at a high and it is a “significant output from the
population” (quoted from the business dictionary) this is a period when the business has a
really successful period and the business his getting higher sales with high profit being
made, this is also a period when employment increases which would be better.
Recession:
A recession is a downfall in the economy and it lasts much longer than a few months, for
businesses income is lows as
traders struggle to trade, employment level decrease because of business firing staff in
order to save money. This also results in the national GDP of a country decreasing. A
recession is caused by high interest rates which cause people not to be able to lay back
loans due to the very high interest rates. In this period people also decide to spend less as
they try to save money, a recession is sometimes caused due to inflation.
Recovery:
Recovery usually signals the end of a recession or a slump, however, you cannot usually
recognise a recovery period has begun until after a few months of it, from a recovery period
you can see just how far or well the business is doing since or after the recession, in
recovery period the country's GDP slowly increases and employment levels increase again as
businesses are doing well and need to hire more staff as the business is growing.
Slump:
Slump is the beginning of business decline and activity of business also declines, in the loan
industry lending policies are tight as getting a loan is difficult and overall lending volume will
decrease.
1
