Damini Dhiman 259477
P5: Describe the influence of two contrasting economic environments on
business activities within a selected organisations. I will also define what each
business/ economy cycle is.
Tesco is my chosen organisation.
Introduction:
In this assignment I will be describing the influence of two contrasting economic
environments on business activities within Tesco.
What is a business cycle?
A business cycle also known as the trade and economic cycle is the measurements of growth
measuring upwards and downwards of gross domestic product (GDP. The economy inclines
to experience difficult trends. These can be categorised as the Trade Cycle and may tend to
feature boom, slump, recession and recovery.
Boom:
A boom is a period fast economic growth. Output is high due to increased demand and
unemployment is low. Business confidence may be high leading to increased investment.
Moreover, consumer confidence may lead to extra spending.
Recession:
Recession is a period where economic growth slows down the balanced level of output and
may lead it to decrease. Unemployment is likely to occur and increase. Firms may lose
confidence and reduce the investment. Individuals may save rather than spending.
Trough:
Trough is the turning point of the business cycle. A trough can be implied as the stage in the
cycle, which marks the end of a period of the business’ activities and transactions to
expansion.
Recovery:
Recovery is a period when the economy moves between a recession and boom. This is when
the business regains and exceeds peak employment.
Select two business/ economy cycle stages from above and explain what
influence they have on your selected organisation and its activities.
TESCO:
My selected organisation (Tesco) is a public limited company meaning their stocks can be
sold and bought by anyone. Tesco is owned and traded publicly. If customers spend less
then it the producers and sellers will cut back their stocks meaning they would cut back in
the production and cut back the costs this includes the employments wages cost. Therefore,
this leads to more people losing their jobs, incomes falling meaning further cut backs on
P5: Describe the influence of two contrasting economic environments on
business activities within a selected organisations. I will also define what each
business/ economy cycle is.
Tesco is my chosen organisation.
Introduction:
In this assignment I will be describing the influence of two contrasting economic
environments on business activities within Tesco.
What is a business cycle?
A business cycle also known as the trade and economic cycle is the measurements of growth
measuring upwards and downwards of gross domestic product (GDP. The economy inclines
to experience difficult trends. These can be categorised as the Trade Cycle and may tend to
feature boom, slump, recession and recovery.
Boom:
A boom is a period fast economic growth. Output is high due to increased demand and
unemployment is low. Business confidence may be high leading to increased investment.
Moreover, consumer confidence may lead to extra spending.
Recession:
Recession is a period where economic growth slows down the balanced level of output and
may lead it to decrease. Unemployment is likely to occur and increase. Firms may lose
confidence and reduce the investment. Individuals may save rather than spending.
Trough:
Trough is the turning point of the business cycle. A trough can be implied as the stage in the
cycle, which marks the end of a period of the business’ activities and transactions to
expansion.
Recovery:
Recovery is a period when the economy moves between a recession and boom. This is when
the business regains and exceeds peak employment.
Select two business/ economy cycle stages from above and explain what
influence they have on your selected organisation and its activities.
TESCO:
My selected organisation (Tesco) is a public limited company meaning their stocks can be
sold and bought by anyone. Tesco is owned and traded publicly. If customers spend less
then it the producers and sellers will cut back their stocks meaning they would cut back in
the production and cut back the costs this includes the employments wages cost. Therefore,
this leads to more people losing their jobs, incomes falling meaning further cut backs on
