Influence contrasting economic environments Essay

Describe the diverge of two contrasting economic environments on occupation activities within a selected organisation. There ar two precise important economic environments that set Tesco, economic growth and the recession. An economic growth leave behind be unspoiled for Tesco as business pull up stakes be booming, to a greater extent goods are cosmos produced and profits are increasing. When this happens Tesco becomes a very lofty profit business and invest in new crops or stores which bottom lead to Tesco cosmos more profitable business wise. Profits are maturationd during economic growth as customers want more products they make up the notes to go along and choose to spend it in Tescos.This leads to a oft measures elevateder product crave, which scratchs the primary sector rearers. Farmers give need more animals and more farm slews effectively as they are producing for a large caller-out and if the demands arent met they pass on lose business. For examp le during an economic boom slew tend to buy luxuries as they have the spare coin to spend, so a customer instead of get a ready meal might decide they allow have a steak instead and in that location could be a large amount of Tescos customers with the same eyeshot process, this will in turn mean that Tesco will order a large amount of steaks from the farmers and if they cant supply this they will lose Tescos business and also Tesco wont be able to meet its customer demands and could also lose business. People will also stop buying Tesco rate products such as cereal, put up goods and start buying branded names as they can expend it and we are a brand loving country which means that Tesco aim more money as slew are buying the much more expensive goods. In 2011/2012 Tesco had a reasonable growth in profit even in a challenging economic environment, Tescos sales increased by 7.4% to 72 billion.Tesco notwithstanding did not build up the profit that they would have liked the y were running their business in a very challengeable sentence during 2011/2012 as the recession is still very much taking over the thrift, they managed to survive by offering their customers Tesco survey products at next to nothing prices which were bought a lot more receivable to their cheap prices offering more competition for companies such as Lidl. During a difficult economic climate consumers get down on disbursement in an attempt to try and save money as the terms of living increases but wages dont. This means that Tesco would have cut down on orders to manufacturers for example the steaks, no one would have been buying them and they whitethorn have cut their order from 1000 to 400 for example.The incumbent concern rates can also effect a alliance like Tesco because if they borrow a loan from the bank then if the interest rates are high then Tesco will end up paying back more money than the original borrowed amount, however if they are lower than it would be the best time for Tesco to borrow if they need to because although they will still be paying back more than what they borrowed however it will be a much lower amount. Inflation rates can also present problems as they decrease and increase over time if the rate of inflation is high the Tesco will increase their prices to compensate for the tramp however this will decrease their sales because customers wont be willing to pay the higher prices. GDP (Gross National Product) is the trade value of all goods and services over a certain period of time if the GDP increases by 3% it means that the economy has grown by 3%, this has an wedge on everyone in the economy because it affects the line market which is something that any potential investor will take into consideration before they invest.Tesco will see wage increase in a healthy economy and higher profits as Tescos products have a demand increase. Cancer look into UK will have struggled during the recession and current clock as peopl e are cutting down on spend and unlike Tesco Cancer Research are selling things that yes people need, however their products arent essential at that placefore they will be losing lots of money and may have to cut down money on look into and support. They have a much smaller budget that has to be fagged carefully in order to prevent a negative impact on the business recently Cancer Research has not had the funding to research into new types of cancer and develop knowledge as they have had such little funding. During an economic boom however Cancer Research will hopefully make plenty of money to fund research and support as people will have more money to spend on clothes and shoes. They are able to offer a lot more support and can do extensive research into new kinds of cancer as they have the funding. Inflation can affect a business like Cancer Research UK but not as much because they dont buy in their stock its all donated by customers, however they may slightly increase the ir prices which in such a difficult economic climate is something that they desperately want to avoid.GDP will affect Cancer Research because they may see an increase in customers if the GDP was low because typically there are high rates of unemployment at times like that and people still need clothes to wear and rather than pay high street prices people with go to the charity shops and buy cheaper second hand clothes. However if the GDP increased then Cancer Research may see a decline the their sales and customers because there are high levels of employment during a high GDP and people with have more money to spend on high street trends.