From Ahmad Abby
To Annette Madra
Purpose of this report: In this report I am going to give a definition of the business cycle and the impact of changes in the economic environment with the emphasis on the effect that a recession would have on a company like Aldi.
What is the business cycle?
The business cycle is a constant but irregular activity in the economic environment. There are four different types of cycles in the economic environment these are as follows, the first one I am going to talk about is boom which is fast economic growth this is the peak of the economic environment. The second on is recession which is the economy slowing down, then the there one is slump this is when the economy hits rock bottom. Then the fourth one is recovery this is when the economy starts to expand again.
Throughout the business cycle there are many alterations in the economic activities. There are years that we would see the economy at a strong point and there are years that the economy is slow and there is not that much economic activity. This pattern is called the business cycle.
When we see the economy growing we see that the number of people in employment rises and that we see company taking in more staff this is because consumers are spending more and there is a higher demand for their good and services. When the economy slows down we tend to see that the number of people that are in employment drops this is because people are spending less and going to cheaper shops which would result in the demand for goods and services to decrease.
How the recession period affects Aldi!
When the economy is in recession Aldi will notice that their sales are going up and people are spending less are the major supermarkets and going to the smaller ones which are cheaper. We also see that their investments would increase as there would be new store openings as there is a demand for their goods and services.
In conclusion I think that...