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
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