For this task I chose to review’s Tesco organisations because I like how they are improving their growth in low economy percentage and demand.
The image of business cycle:
Define boom and recession
Boom- The boom stage is when everyone feels good. At this stage demand increased, unemployment is very low, high competition at the job places. The business confidence is high so they invest more and expand themselves. The customers feel good. They spend more because they have jobs and sable income. More money is collected by the government from income taxes and VAT. The last, factor the prices tend to increase because of high demand so the inflation is rising.
Recession- The recession is an opposite of boom stage. The unemployment increase, most of firms are losing confidence and stops invest or expand. They may change their planning and started to survive. The customers are likely to save money then spend and the percentages of loans are high and may increase. Individuals are losing jobs and the government have to spend more money of benefits. They collected back less from taxes and VAT. Businesses are cutting back on productions but for some customers is good if they have money because the prices are falling as well as inflation.
At the boom stage the GDP (Gross Domestic Product) are the values of all finished goods or services produced within a country in specific time period usually one year. It’s calculated by using data on domestic production, more exports less imports all public and privet incomes, outcomes and investments at current and constant prices within the territory. Increasing in GDP leads county citizens live in higher standards. The GDP at the boom stage is high because demand is huge and people are more likely spend more money rather than save. At this stage the customer confidence is rising because they have stable incomes and feel good factors to spend money.
At the recession stage the GDP is very low...