M2

Topics: Inflation, Economics, Unemployment Pages: 2 (402 words) Published: May 23, 2015
UNIT 1- Business Environment

M2
INTRODUCTION
In this task I will be comparing the challenges to my selected organisation and their business activities in the two different economic environments.

Challenges in boom stage (1995-2008)
In a boom stage, EasyJet goes to though challenges that may impact on their performance. When a boom in the economy occurs the main stages are high inflation, competition of labour and shortages of supply. The boom stage generates a high inflation; this is because of the rise in the economy, and the prices, therefore, increase. This occurs because of shortages of supply, products or service are less, and many customers are chasing after it. This leads to business having to employ, and this is when there’s competition for labour. There are many jobs, and everyone is trying to go for the most convenient one leading to competition in it. When this happens, EasyJet could make sure they give good bonuses and benefits to having enough workers for the amount of productivity that needs to be made. This is a challenge to EasyJet because they have to make sure customers are satisfied. Also, they will have to employ staff to be able to produce and serve their customers. The boom stage leads to inflation, which then lead to a fall in the economy that affects Tesco negatively.

Challenges in a recession stage (2008-2014)
In a period of recession, there are a lot of changes EasyJet needs to face in order to survive and help them to continue operating. In a recession period Tesco goes through a decline in demand, customers don’t buy like first leading to low productivity. This has a fall and cash flow problem, the performance of the business drops. EasyJet could control him by offering sales and offer deals to attract customers. During the recession, inflation occurs due to the economy. When inflation rises, jobs decrease, productivity decrease and prices are also high. This slows down the economy, to a fall that will...
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