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

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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.

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