Task 7 (M1)
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 also suggest to customers to spend more. This is good for Marks and Spencer as they can generate more sales and increase their sales because customers are willing to spend more. Another benefit of operating in a boom is Marks and Spencer can invest in expansion as the business will be generating more profit meaning they can use retained profit to establish a new store in more area which also means they would be generating more sales because Marks and Spencer is operating in a Boom. The challenges that Marks and Spencer face in a boom
The challenges that Marks and Spencer could face in a boom would consist of stock and employee problems. The reason why Marks and Spencer would find it challenging with stock is because the customers demand during the boom will be high so it would mean Marks and Spencer would have to spend a large amount on stock, if the business doesn’t have enough stock in their stores then customers will feel that Marks and Spencer isn’t satisfying their needs. The other challenge which relates with employees is Marks and Spencer have more employees pay out more, because they would need more staff to work in their stores since the business is working in a boom and the demand for products will be high. The...
Phil, G. (year) BTEC National Business Book 1 2nd edition. London Heinmann Publications Ltd.
Boom definition (2013) available at: (http://www.businessdictionary.com/definition/boom.html#ixzz2mMTs6nqe) (accessed 02/11/2013)
Recession Definition (2013) available at: (http://www.businessdictionary.com/definition/recession.html#ixzz2mMVAvFIJ) (accessed 02/11/2013)
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