Jaydip Pravinkumar Unit 38 P1
Unit 38 P1
The business cycle of JD sports.
https://ashbournecollegebusinessstudies.files.wordpress.com/2012/08/screen-shot-2012-08-21-at-
16-20-19.png
A business cycles is rising and falling of GDP in the economy and is consist of 4 phrases which are
detailed below
1. Boom
A boom is the significant increase of business activity in the economy. This will impact on
the amount of the sales that the JD sports makes and sells. The boom will also decrease the
number of unemployment, also there will be an increase in the business investments, also
while the boom the business will be enjoying and increase in the sales and also their profit
figures, also because there will be more sales for the JD sports the productivity will also
increase as there will be selling more. However, the negative impact is that this will increase
the inflation. The reason this may be is that there will be an increase in demand from the
customers and the prices of the products will go up, which will make it harder for the
customers to buy the products. The effect that the boom will have on JD sports is that
customers will have high income because the unemployment is decreases, which will mean
that the people will find work as there will be more jobs available. In the boom JD sports will
be able to buy raw material such as cotton and many more because there will be an
increase in the profits figures.
2. Recession
Recession is a huge decline in the process of activity in the economy. This will affect the
business like JD sports because production of the goods and product will decrease because
they cannot afford to purchase the raw material to create the products. A recession is an
Unit 38 P1
The business cycle of JD sports.
https://ashbournecollegebusinessstudies.files.wordpress.com/2012/08/screen-shot-2012-08-21-at-
16-20-19.png
A business cycles is rising and falling of GDP in the economy and is consist of 4 phrases which are
detailed below
1. Boom
A boom is the significant increase of business activity in the economy. This will impact on
the amount of the sales that the JD sports makes and sells. The boom will also decrease the
number of unemployment, also there will be an increase in the business investments, also
while the boom the business will be enjoying and increase in the sales and also their profit
figures, also because there will be more sales for the JD sports the productivity will also
increase as there will be selling more. However, the negative impact is that this will increase
the inflation. The reason this may be is that there will be an increase in demand from the
customers and the prices of the products will go up, which will make it harder for the
customers to buy the products. The effect that the boom will have on JD sports is that
customers will have high income because the unemployment is decreases, which will mean
that the people will find work as there will be more jobs available. In the boom JD sports will
be able to buy raw material such as cotton and many more because there will be an
increase in the profits figures.
2. Recession
Recession is a huge decline in the process of activity in the economy. This will affect the
business like JD sports because production of the goods and product will decrease because
they cannot afford to purchase the raw material to create the products. A recession is an
