Preview

Btec Business Level 3 Unit 14 M1

Good Essays
Open Document
Open Document
1295 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Btec Business Level 3 Unit 14 M1
Task 7 (M1)
Boom
The boom is a period of time that follows the recovery phase in a standard economic cycle. Some of the characterised features of a Boom are: a rising stock market, low rate of unemployment, working at full or near full capacity and a strong customer demand. (Business Dictionary, Online)
The benefits of operating in a boom
One of the benefits of operating in a boom is the customer r demand for products increases, the reason for this is because customers will have more money to spend during the boom due to the fact the economy is at a good stage of the economy cycle and also because there will be a high demand for products and services this will …show more content…
The characterised features of a recession are marked by: high unemployment, stagnant wages and a fall in retail sales. (Business Dictionary, Online)
The benefits of operating in a recession
One of the benefits of a recession is Tax reduction, as this effects Marks and Spencer because they won’t have to pay that much on taxes because the economy is not stable enough for Marks and Spencer to be paying full price for taxes. Also because Marks and Spencer could have a decline in generating sales and making a profit while the recession is about.
Another benefit would be employees will have better working performance. The reason for this is because they would want to make sure that the store their working in doesn’t close down otherwise they can face unemployment. This would benefit Marks and Spencer as they would want all their staff to perform well, give a out excellent customer service so they are able to attract the customers they need to make enough sales to survive in the recession.
The challenges that Marks and Spencer face in a …show more content…
Operating in a boom means the demand for product/services will be high, this means Marks and Spencer will need to ensure they have enough stock for each week to ensure that their competitors don’t have a chance to out sell them in a certain areas e.g. clothing department. Operating in a recession means the demand for products/services will be low, this means Marks and Spencer should prepare to lose out on stores but also have the prices for certain products to decrease to a suitable price that still ensures the quality of the product is good and also affordable for customers. The only downfall of a boom is doesn’t last long before another recession
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Group Diversity
    • 391 Words
    • 2 Pages

    Group Diversity

    Higher staff retention; reduced recruitment cost; more satisfied customers; access to a world-wide customer base; better supply chain management…

    • 391 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Statistical Reasoning in Psychology
    • 865 Words
    • 4 Pages

    Statistical Reasoning in Psychology

    Everywhere you look the effects of the recession can be seen. This can be seen across the board from the neighbor next door to businesses. More and more families are doing cut backs. They are deciding to stay in; instead of going out and spending money. This in turn causes businesses to reevaluate their budget. They are having to lay off and in some extreme circumstances they end up filing bankruptcy and closing. There are more and more people without jobs, and more businesses that are closing or filing bankruptcy because they cannot afford to stay open.…

    • 865 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    The Positive Impacts of Self­interest and Freedom
    • 659 Words
    • 1 Page

    The Positive Impacts of Self­interest and Freedom

    The Boom/ Bust cycle is a natural occurring matter where there are periods of good…

    • 659 Words
    • 1 Page
    Good Essays
    Read More
  • Good Essays

    To what extent do you think that the amount of profits earned by a business in a recession depends entirely on the industry in which it operates?
    • 879 Words
    • 4 Pages

    To what extent do you think that the amount of profits earned by a business in a recession depends entirely on the industry in which it operates?

    One of the main changes in a particular industry during the recession was the Fast Food industry. During the recession these industries seemed invulnerable to the dramatic decrease in luxury spending due to the increased price of necessity goods. The first company which have been doing well whilst England have been in and out of recession is KFC, they seemed to have gained the benefits of people having less money to spend whilst being able to put back into the economy by creating jobs, this is shown in the Worcester the ‘Job Centre’ which was approached by KFC to fill 70 jobs that were to be created in 2008 just after the first recession had began. Also in February 2009 BBC news published another story quoting KFC on ‘creating 9000 jobs over the next 3-5 years’ this is a staggering figure and one that was created during a heavy recession. The reason they were so confident with their figures throughout the recession was because they believed people who now had less money to spend were drawn to cheaper foods, therefore boosting the fast food industry.…

    • 879 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    P5,M2 Unit 1 Business Enviroment
    • 1603 Words
    • 7 Pages

    P5,M2 Unit 1 Business Enviroment

    Growth affects the business activities for John Lewis because just as economy can change for a business so can demand for products and both could be associated with each other. During periods of growth you expect to see a fairly high demand for John Lewis’ good quality products so customers and potential customers would buy as during this time customers behaviours over money is more care free compared to when its in a period of recession. Mostly you could see John Lewis looking into recruiting more workers as since demand can increase a lot during the growth environment they’ll need more workers to spread out the job load for the employees otherwise if the business didn’t and just overloaded a employee with workload it could de-motivate that worker a lot it would contradict with the theory of Frederick Herzberg about the 5 factors to bring the potential to satisfy in a worker and the other 5 factors to motivate a worker after the you fulfil the factors that bring the potential to satisfy first. Or John Lewis could get the employees internally through transferring existing employees from other John Lewis branches of which are not at a so busy period as some other branches. Since customers and potential customers become more care…

    • 1603 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    For a Firm to Survive It Needs to Know as Much About the Business Cycle as It Knows About Its Markets
    • 696 Words
    • 3 Pages

    For a Firm to Survive It Needs to Know as Much About the Business Cycle as It Knows About Its Markets

    However it’s hard for a firm to understand the business cycle as it’s quite random and unpredictable, but is a sequence of four phases, if a firm can understand these phases; boom, recession, slump and recovery than it will be able to act in the most efficient way for the situation, for example during a boom there will be increased demand which may result in firms utilising their production capacity to the full but if a firm knows this is going to happen then it can plan to expand in time for it, another example is during a recession many business will fail so if a business and operate efficiently with cost cuts etc. then it may even emerge stronger and better. E.g. Zara, has cut costs by reducing storage to hardly anything as…

    • 696 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    A-Level Buss4 to What Extent to Do Think That the Recent Changes in the Uk Economy Will Have Damaged That Lt Profits of Businesses
    • 941 Words
    • 4 Pages

    A-Level Buss4 to What Extent to Do Think That the Recent Changes in the Uk Economy Will Have Damaged That Lt Profits of Businesses

    One reason that the recent recession will have inevitably damaged the long-term profits of businesses that operate in this country is that because of the recession, consumer confidence falls and so people spend less therefore many businesses reduce their prices to attract more customers. For example, M&S had suffered during the recession, losing share in fashion and food to cheaper rivals. Shoppers seeking bargains amid the economic downturn means Asda’s George and discount clothing retailer Primark are the nation’s first and second favourite clothes shops. Therefore in response M&S had introduced promotional offers such as the ‘One day Christmas Spectaculars’,’ dress for less’ and ‘dine for 2’ with 'unprecedented' price cuts on food to attract cash-strapped shoppers. This strategy can attract customers in the short term but however in the long-term customers may expect more offers: lower prices with maintained quality so when M&S ends its offer and charge higher prices then it may risk the chance of losing out customers. Cost…

    • 941 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Subject: D1 Evaluate the Impact of Changes in the Economic Environment on a Selected Business.
    • 785 Words
    • 4 Pages

    Subject: D1 Evaluate the Impact of Changes in the Economic Environment on a Selected Business.

    In 2012 the government decided to raise the minimum wage and change the vat rules this had a massive effect on marks and spencer’s as a company. The government raised the minimum wage to £6.18 an hour, This had a bad effect on marks and spencer because all the people at marks and spencer that were on the smaller minimum wage £6.08 (off which It was estimated that nearly half of their work force were on) this lead to an increase on cost that was estimated to be over £60 million pound, this cost would have impacted on marks and Spencer’s because this firstly their cost would have gone up and marks and spencer would have had to make the decision to raise their prices to cover the cost however if they were to raise the prices this would have meant that it would be even harder for customers to afford their food and this would have then meant that these customers may have found another way firstly their cost would have gone up and marks and spencer would have had to make the decision to raise their prices to cover the cost however if they were to raise the prices this would have meant that it would be even harder for customers to afford their food and this would have then meant that these customers may have found another supermarket they may be cheaper to shop at, Marks and spencer could of also absorbed the cost however if they were to do this this would affect their profit margin and their mean that the customer would make a smaller profit and it is likely that they share price will then become smaller due to the week earnings.…

    • 785 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    P5- Boom and Recession
    • 1310 Words
    • 4 Pages

    P5- Boom and Recession

    The recession side for Marks and Spencer’s would be kind of difficult, because they wouldn’t know how to deal with money flowing away from them and it would be a hard task to complete. Customers would not want to shop at Marks and Spencer’s, if they were in a…

    • 1310 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    AS BTEC Level 3 Unit 1 p5 M1

    • 621 Words
    • 2 Pages

    AS BTEC Level 3 Unit 1 p5 M1

    The consumer of Marks & Spencers would be affected during the recession because there’s less money for them to spend in the store therefore they spend less and try to save more but also the worth of the money would have dramatically dropped. The customers of M&S would be still affected during growth inflation however the company will still be gaining profit from them. The company still gains profit as the consumer would spend more money but the prize of the product would still go up however the value of the money stays the same so Marks and Spencers would be still making profit compared to before.…

    • 621 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    The Effect Of The Great Recession On The United States Economy
    • 261 Words
    • 2 Pages

    The Effect Of The Great Recession On The United States Economy

    “Historically, recessions have developed over time. This one seems to have developed overnight (Partilla).” This thought is thought to stress the fact that while recessions are at times rare, when they do occur they can have a devastating effect. A recession or economic downturn is defined as a period is temporary economic decline during in which trade and industrial activity are reduced. Economic recession is generally accompanied by a rise in unemployment, high inflation, and decline of the housing market. Otherwise known as “The Great Recession,” the recession in the United States from the year 2007 to 2009 negatively impacted the United States economy by significantly altering the US’s labor market, unemployment rate and recovery potential.…

    • 261 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    P1 Unit 6 Business Report
    • 7433 Words
    • 30 Pages

    P1 Unit 6 Business Report

    Using Tesco as an example many things affect how they supply to the demand. Seasonal affects such as Christmas, Easter, Summer, Winter, Back to School etc, all change the way products are marketed and also when they marketed. No sooner have schools broken for summer holidays, when the big food stores are advertising back to school, and Christmas items appear on shelves in September. Recession brings out more ‘Own Brand’ items which due to increased costs in living drive consumers to buy.…

    • 7433 Words
    • 30 Pages
    Powerful Essays
    Read More
  • Best Essays

    Strategy in Recession Spending or Not to Spend
    • 3524 Words
    • 15 Pages

    Strategy in Recession Spending or Not to Spend

    Tellis and Tellis (2009) & Apaydin (2011) shown the definition of economic recession is two successive quarters of negative growth in gross domestic product (GDP). Economic recession are times of adversity for firms in which large banks fail, insurance companies tress, industrial goods’ sales plum, consumer demand shrink, retailers go bankrupt, and requests fir bailouts skyrocket (Apaydin,2011). In these ‘hard times’, managers are searching for competitive advantage strategies aimed at, not growth, but survival itself (Apaydin, 2011;…

    • 3524 Words
    • 15 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    The Purpose and Advantages of a Customs Union
    • 346 Words
    • 2 Pages

    The Purpose and Advantages of a Customs Union

    Consumers get a wider choice of goods and they also benefit from the advantages of increased productivity which leads to lower prices…

    • 346 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    The Summary of the Costs of Unemployment
    • 400 Words
    • 2 Pages

    The Summary of the Costs of Unemployment

    Some people believe that recessions are neither good nor bad but simply part of the natural survival of the fittest in the business world. Actually, it is not true. In The Costs of Unemployment, the authors tell us both the good and bad influences of recessions.…

    • 400 Words
    • 2 Pages
    Good Essays
    Read More

Related Topics