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UNIT 1 - The Business Environment - Controlled Assessment 2
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- PEARSON (PEARSON)
UNIT 1 - The Business Environment - Controlled Assessment 2
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B. Explain how your selected organisation business activities would be impacted during a recession.During the recession there is going to be less production, this means less production are going to be needed, so the demand and supply is going to
fall and there will be less disposable income. The prices are still going to be up because of inflation that was set up during the boom this means that
the customers are not going buy products that are expensive so they are going to switch to the cheaper substitutes this means that Greggs will have
to reduce the prices of their products in able to get some customers, the GDP is going to be low because the country is going to be in recession,
there are going to be less products needed for the customers, the demand is going to fall this means also the supply is going to fall so the producers
are going to produce less products this is because less customers will buy products and there is going to be low availability of raw material.
Purchasing, Greggs will need less supplies and this is because of less demand of Greggs products.
The recruitment and selection, Greggs will employee less people because of less work available this means that less people will be employed, there
could also be redundancies taken into the place, this also means that Greggs is going to be able to find people that have the right qualification for
the job.
C. Explain how supply and demand would be affected during a recession and how this would impact your selected organisation.
The customers of Greggs are going to have less disposable income, therefore customers are going to buy less, this means less products will be
needed, and Greggs will not be able to get profit, the affordability is going to decrease. The customers will buy products that will need only and the
products that are essential for them, and they are going to go to the cheaper substitutes of Greggs, this will affect Greggs in a negative and a
positive way because they are going to recruit people with the right qualifications however it will also affect in a negative way because the customers
are going to decrease. Moreover, the raw material is going to increase this means that there is going to be availability of material that is going to be
of right and good quality therefore this will give benefit to Greggs. The production is going to cost less because the government is going to decide of
the country being in a recession and this means that they are going to get profit.
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