P5,M2 Unit 1 Business Enviroment
P5 - Describe how John Lewis would be influenced by economic factors in a time of economic recession and economic growth in the UK economy
The two economic environments that I would be describing about are recession and growth on the business activities of John Lewis. Growth occurs when more goods are being produced and consumed, and also incomes are rising. During growth people spend more money on goods and services as they have more money to spend and also businesses would invest more and hire more labour as it links to increasing demand. Recession however occurs when people involved in business become more cautious so they cut their spending down and also cut back on their orders as well as making workers unemployed or redundant.
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
The two economic environments that I would be describing about are recession and growth on the business activities of John Lewis. Growth occurs when more goods are being produced and consumed, and also incomes are rising. During growth people spend more money on goods and services as they have more money to spend and also businesses would invest more and hire more labour as it links to increasing demand. Recession however occurs when people involved in business become more cautious so they cut their spending down and also cut back on their orders as well as making workers unemployed or redundant.
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