With Reference To Organisations Or Indu
“With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long term profits of businesses that operate in this country” 40 Marks
The UK economy has been a bane to at least every business that has ever set foot into trading and manufacturing in the UK, However recent changes such as the recession and low consumer confidence has made it ever so hard to recover ultimately damaging the long term profits of the business, However Diversifying products, the impact of Aldi and Lidl has meant that it is not ultimately inevitable that the long term profits will be damaged.
The most important economic factor that has damaged UK firms is that of the Recession, which is 2 successive quarters of negative growth, This ultimately has affected businesses to a large extent as it has reduced that of consumer confidence, Therefore customers will not spend more meaning sales will decrease and therefore staying in a recession. Therefore businesses that had not planned for this like that of HMV which failed largely to its ability to not adjust to change especially when the influence of buying music, games, DVDs etc. had become that of an online phenomenon. Ultimately you can argue that the recession will reduce the long term profits of the business especially as a recession can last for a large amount of time, but also because you have reduced sales meaning your profit margins will be reduced and that will be seen in the long run. However it can be argued to what extent as it’s not always that idea of Inevitability, For example the rise of Aldi and Lidl has created this question, For example in 2008 Tesco had hit its lowest sales within 16 years, this was caused by that of budget retailers in that of Lidl and Aldi, this was largely because of the business plan that they had which has allowed them to prepare for times of hard economic downturn. But it depends on whether the business
The UK economy has been a bane to at least every business that has ever set foot into trading and manufacturing in the UK, However recent changes such as the recession and low consumer confidence has made it ever so hard to recover ultimately damaging the long term profits of the business, However Diversifying products, the impact of Aldi and Lidl has meant that it is not ultimately inevitable that the long term profits will be damaged.
The most important economic factor that has damaged UK firms is that of the Recession, which is 2 successive quarters of negative growth, This ultimately has affected businesses to a large extent as it has reduced that of consumer confidence, Therefore customers will not spend more meaning sales will decrease and therefore staying in a recession. Therefore businesses that had not planned for this like that of HMV which failed largely to its ability to not adjust to change especially when the influence of buying music, games, DVDs etc. had become that of an online phenomenon. Ultimately you can argue that the recession will reduce the long term profits of the business especially as a recession can last for a large amount of time, but also because you have reduced sales meaning your profit margins will be reduced and that will be seen in the long run. However it can be argued to what extent as it’s not always that idea of Inevitability, For example the rise of Aldi and Lidl has created this question, For example in 2008 Tesco had hit its lowest sales within 16 years, this was caused by that of budget retailers in that of Lidl and Aldi, this was largely because of the business plan that they had which has allowed them to prepare for times of hard economic downturn. But it depends on whether the business