P5- Describe the influence of two contrasting economic environments on business activities within a selected organisation
M2- Compare the challenges to selected business activities within a selected organisation, in two different economic environments
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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller daminidhiman. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.86. You're not tied to anything after your purchase.
