Different economic factors Essay

In this report I am going to severalize the way that Cadbury argon prompted by different frugal factors. I forget describe the influence of two contrasting economic environments on the condescension activities within the organisations. I leave behind then compare the challenges to selected business activities within the organisations, in two different economic environments. receding Recession is when the GDP (Gross domestic help Product) falls and goes negative. The GDP represents the wealth of the economy. When there is a recession there is a decline in business activity, over more than a few months.Employment rates, household income, business boodle and investment perishing all decrease while unemployment rates and the add of bankruptcies rise because people begin to be more careful with their capital and are less prepared to barter for high priced items, for example cars and houses. tidy sum tend to take less risks when investing their cash and companies also jac kpotnot in truth afford to be employing as more people and this is how the unemployment rates augment. The affect of recession on Cadbury Recession leave affect Cadbury but not too drastically.The reasons for this are that people leave behind still continue to buy Cadbury products because they are a low priced product and still affordable to m any people. The sales for Cadbury may even increase during a recession because people may fall into comfort eating over the recession which would import in increased sales for Cadbury. More expensive products, for example Cadbury pass on boxes and celebration cakes however, lead decrease in demand and sales for these products will fall fairly drastically because they are high priced than single nix so less people will be prepared to spend that amount of money in a snip of recession.This will however increase the sale of small, individual bars. In a recession Cadbury will easily be able to recruit people. This is because a higher p ercent of people would have been made redundant from their previous jobs and so they will be happy just doing a job until they find something better. They will not be as bothered if the stipend rate isnt as high or if they dont receive any benefits, they will just be happy close to earning money a realize. whence in recession recruitment for Cadbury would be an easy process as a large amount of people will be looking for for spirt.Cadbury would also be able to pay a reduced pursue to new employees. Economic Growth Economic Growth is where the wealth of the increases, this can be measured by looking at the GDP (Gross Domestic Product. ) As the wealth of the economy is growing there is a higher demand for a businesss products or services. When there is an economic fruit, people tend to feel more safe ab show up their jobs, their ace of job security increases and they therefore feel more comfortable about spending out larger amounts of their money.It is during a measure of eco nomic growth that people will be more likely to take out a loan with a bank or buy a high priced item, for example a car because they will be convinced(p) in knowing they will be in their job gain ground down the line. The affect of economic growth on Cadbury When the economy is growing, Cadbury will see an increased demand for their products because more people will be happier spending their money. The sale of larger, more expensive Cadbury products will also increase because people wont mind paying out more money for these, unlike they would if there was a recession.Cadbury will have more employees during this time because they will need to keep up with the demand. Recruitment however, will be a often slower process than it would in a time of recession. It will be a slow process because people are already likely to be in a job work so it will take a longer time for Cadbury to gain workers. Cadbury would then have to offer a higher rate of pay than other companies in order to g et people to want to work for them. Most people would stay with their current job if the pay is similar. This could be costly for Cadbury as they will have to offer as much as they can afford in order to attract people.