• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

In this report I am going to describe the way that Cadbury are affected by different economic factors.

Extracts from this document...

Introduction

To: Ann Warren From: Date: 24th November 2010 Subject: A report to describe how economic factors affect Cadbury and the Association For Organics Recycling. Introduction: In this report I am going to describe the way that Cadbury are affected by different economic factors. I will describe the influence of two contrasting economic environments on the business activities within the organisations. I will then compare the challenges to selected business activities within the organisations, in two different economic environments. Recession Recession is when the GDP (Gross Domestic 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 profits and investment spending all decrease while unemployment rates and the amount of bankruptcies rise because people begin to be more careful with their money and are less prepared to buy high priced items, for example cars and houses. ...read more.

Middle

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 percentage 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 pay rate isn't as high or if they don't receive any benefits, they will just be happy about earning money again. Therefore in recession recruitment for Cadbury would be an easy process as a large amount of people will be looking for work. Cadbury would also be able to pay a reduced wage 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.) ...read more.

Conclusion

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 much 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 working 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 get 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. ?? ?? ?? ?? 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Spreadsheet Report for Tuck Shop

    Because this is the first week it equals the 'Total money made for week 1'. So the formula see simply =C30. This is shown below. 'Profit & Losses (week 2) is done in exactly the same way for using data from other sheets in week 2.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    Companies have to work harder to attract customers during the recession. Customers do not want to part with their money as much as they did before so companies need to work harder with promotions and advertising to encourage customers to part with their money.

  1. This is a detailed business report on Sainbsurys.

    of the business, running costs, liabilities of any outstanding debts, and meeting capital requirements. It is very easy and simple to set up as a sole trader. You need to follow the following steps: * Responsibility for providing capital either from savings or a loan.

  2. Business report on J Sainsbury's.

    If you look at the record of five years of financial records of Sainsbury's you will see that the group turnover increased exactly by �2,710 million. In terms of making profit J Sainsbury's doesn't only operate as food retailers but as a property development that is called J Sainsbury's Developments Ltd.

  1. Valuation and Investment Report- Beverage Industry

    In other words, this number shows that a 10% jump in the index will result in an approximate 3% jump in stock return. Valuation Ratios Valuation ratios of a stock assess whether a stock's price is high or low relative to its current level of sales, earnings, and expected earnings growth.

  2. Job roles, recruitment, motivation and legislation.

    > Aptitudes > Interests (social activities or sports activities) > Personal circumstances (ability to work shifts, full or part time, temp or permanent) It is important that a business must ensure that the list of essential or desired competencies does not lead to unlawful discrimination against potential employees.

  1. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    The club card works by having the customer collect points on any of Tesco?s products or services that they purchase, customers then use these points to obtain vouchers ? the amount of money on the voucher depends on the amount of points a customer has ? e.g.

  2. Applied Business. Investigating a business Preston Manor High School

    However, a supervisor is likely to cover for the head of business so this will reduce the problems because the supervisor is likely to have good amount of information to keep the lessons going efficiently. Social - Over time, people change and develop different views, needs and wants.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work