Using AD/AS analysis, describe and illustrate two cases where economy gets stuck in recession and does not return quickly to its natural level of output.
Using AD/AS analysis, describe and illustrate two cases where economy gets stuck in recession and does not return quickly to its natural level of output. Economy is fluctuated by the changes in aggregate supply or aggregate demand and it is shocked by the exogenous changes in those curves. Economists call a shock that shifts the demand curve a demand shock and a shock that shifts the supply curve a supply shock (Mankiw, 1999). In this essay, we will describe how these shocks would push the economy's output away from its natural level and look at how government keeps its output back to the original level as close as possible. Demand shock In this essay, we assume in short-run, all prices are fixed. Therefore, the aggregate supply curve (SRAS) is horizontal. Also the level of output is determined by the amounts of capital and labour, so in long-run the AS curve (LRAS) is vertical and the output is at its natural level. Suppose there is a increase of the real interest rate and this encourages people to save more instead of spending-causes the decrease of aggregate demand and the AD curve shifts inward from AD1 to AD2(Point A to B). The shift of AD causes the output decreases from Y1 to Y2. At the same time, prices stay at the old level P1, suppliers produce less output Y2 and this causes an economy recession in short-run. Government's reaction to the shocks is to use
Human resources for my business. The recruitment process is extremely important as it will allow me to gain fully qualified beauticians for my business by outlining all the requirements needed in a position at Asian Beauty and it will also save a lot of t
Human Resource Introduction Recruitment is the process of identifying that your business needs a new employee and recognising what the new employee's job should involve. The skills, qualities and experience required for the job will need to be established and as a result of this the right person will apply for the job. Recruitment includes four different stages, the job analysis, the job description, the person specification and advertising the job opportunity. The job analysis is the breaking down of a job into its component parts in order to identify exactly what the job requires such as, how many workers are needed?, and what qualities and skills the workers need. The job description is a document that describes the role of the job, this would contain basic information about the job such as, the job title, duties and responsibilities and who they will be responsible to. The person specification is a document that describes the skills, qualities and qualifications required in a person to successfully do the job and advertising the job opportunity is the process of informing potential employees that there is a vacancy in the business. The recruitment process is extremely important as it will allow me to gain fully qualified beauticians for my business by outlining all the requirements needed in a position at Asian Beauty and it will also save a lot of time and money.
Contribution to innovation and change. Explain three points of innovation in a business environment.
Task 1 You have been asked to write an article for a magazine called "How to contribute to innovation and change within the organisation". . Explain three points of innovation in a business environment. Businesses that encourage innovation and creativity are more likely to succeed than those which don't embrace change. This can be achieved by: > exploiting new ideas > taking advantage of new technologies > leading the market rather than follow it 2. Explain why it is so important to review existing ways of working in a positive way, identify four ways for doing so. > Improve business processes to increase efficiency and productivity > Develop new and improved services to meet rapidly changing customer demands > Differentiate your business from your competitors to increase your market share > Take advantage of new technologies to enter potentially lucrative new markets > Attract and retain key staff by building a reputation as a dynamic, forward-thinking organisation. 3. Explain three benefits of teamwork when contributing to innovation and list three behaviours and attitudes which will support this innovation. > People with diverse talents, personalities, and backgrounds who are able to exchange their ideas freely set the tone for change. > Recognition that there's not just one correct way of doing things and being appreciated makes you want to be more
Competitor Analysis
Shahid Islam 11/S1 Competitor Analysis The main competition for my game shop will be 'GAME'. This competitor is highly known in the high street and attracts a huge number of customers every week. The aims and objectives for GAME are like most other successful businesses: To gain more profit and customers. But every year, they intend to expand their reputation in different ways for e.g. advertising, new consoles. One of the main factors in why the business has attracted huge interest is because of many stores across UK. However, as I am going to locate my particular business in Southgate it is important to compete with on of the GAME shops nearby. There are many reasons why GAME might of located their store in Southgate: - Population in Southgate is higher than average compared to other areas. - Low rate of crime - Different types of market they can target - High Street is usually busy during weekdays and Saturdays. - Cost and availability of land/premises. - Availability of labour - Government incentives GAME is highly respected due to its prices and quality of its products. So therefore it is important to target in that particular area so my business can compete well. GAME almost offers everything to do in terms of gaming entertainment. They sell all the latest consoles, games and gaming accessories. But most significantly, in terms of business, is that they
Marketing & Marketing Mix usb
Marketing Mix A Definition of Marketing This is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to satisfy customers. Market is also used for groups of people wanting to purchase a product or service. Some products may exceed more than one market. This is the location where people meet to buy and sell. Marketing is more than just selling or advertising. It is the art of making it as easy as possible to get the potential customer to buy your product. A Definition of Marketing Mix and what it Contains The four main elements used by a marketing manager to market goods and services. These elements are product, price, place, and promotion.In order for marketing to succeed a range of different activities should take place.This is called the Marketing Mix. The four P's are the key to the product being marketed. Product This is a key part as its quality and appearance etc. are made.It makes the design ,quality, appearance, special features, number of models or sizes etc. The product is essential to be rightly packaged and the branding name suiting the product. In marketing, companies are always trying to make as much profit as possible. They try to establish good famous brands. If a company has a good brand it can produce bucket loads of money. So companies try to extend the life of profitable brands. An
tyoes of ownership
Types of ownership Business Definition Advantages Disadvantages Sole Trader One person owns and runs the business. * Decisions are made quicker * Profits do not have to be shared. * Business affairs can be kept as a secret. * Finances can't be easily to raise * Unlimited liability * Illness/holidays can effect the business Partnership A business owned by 2-20 people. * Can be formed easily * Business affairs are private * New skills and ideas can be introduced * Partnership have unlimited liability * Disputes can take place between the partners. * Expansion is difficult. Franchise A business where the new comer buys permission or to copy the business ideas of the established company. * Greater chance of success. * Benefits from using the brand name. * The franchiser provides support. * Have to share the profits to the franchiser. * Expensive to set up. * Will not be able to sell the business Co-operative A business where the workers own the business * Members are able to set their own terms and conditions * Every member is a shareholder and is committed to the business. * Members may disagree * Not everyone may have the same commitment to the business. * The comity that controls the co-operative may lack business skills. Business Definition Advantages Disadvantages Private Limited Company (LTD) It is company owned by a minimum of two
State the assumptions of perfect competition. How does a perfectly competitive industry work in the short run and the long run? What makes perfect competition efficient?
State the assumptions of perfect competition. How does a perfectly competitive industry work in the short run and the long run? What makes perfect competition efficient? Assumptions behind a Perfectly Competitive Market In a perfectly competitive market it is assumes that there is a large number of small firms that all produce a homogeneous product. Firms in this market are all price-takers, where they use the selling price that it set by the price equilibrium. A perfectly competitive market also has no barriers to entry or exit; there is also perfect knowledge within the market. A perfectly competitive market must contain four characteristics in order to be perfectly competitive. These four are better described as: * There must be many buyers and sellers in the market however none of these should be able to influence the price. A perfectly competitive market usually has a small number of firms that supply to a small number of buyers. The buyers and sellers in this market are also price takers set by the price equilibrium. * All firms in a perfect market should have an identical output, where all the firms produce a homogeneous product (where one good is as good as another) and these goods should be perfect substitutes for one another, in order for the consumers to view the products as identical as each other. * A perfect competition is assumed to have no barriers to the
Comparative report on HMV and Hope House. Objectives of a PLC and a charity.
Comparative report on HMV and Hope House. The manager has decided he is still unsure about different types of business ownership aims and objectives. He has asked you to create a short report that will incorporate the two sections. Within this report he has requested you to compare and contrast the following points for your two businesses. (The two businesses must have been researched for your P1 task). HMV This is a public limited company. The name of the company ends with plc / plc. Shares can be sold on stock exchange and the public can by the shares and investors can buy shares as well. Shares sold to the public bring in a lot of money to the company. HMV belongs to the tertiary sector, and is a public limited company and it's the largest of it kind in Britain and Canada HMV sell Entertainment good's such as music, Blue ray, DVD's, games, gadgets and t-shirts; they also sell ticket to gigs and comedy. HMV was founded in the 1920 in London. HMV is a global company but is based in the UK with over 700 stores in 7 different countries and over 11,400 staff. It's served in the UK, Republic of Ireland, Canada, America an in the Far East. HMV is a global company and it's well known. Hope House Hope house is a charity run business and it belongs to the tertiary sector, and they employee 40-60 of staffs in United Kingdom. Hope house is a children hospice which provides
Birmingham International Airport - Location
There are a lot factors that need to be taken into consideration where you are choosing an appropriate location for a business, and BIA is no exception. Competitors: Don't go and pick somewhere where you competitors are based, because the chances are they are already established and they will just beat you into the ground. Its like if you got a choice, race a cheetah or a snail, you'd be picky the cheetah, not impossible to beat, but required a lot of work, which is what would be needed for anyone who opens up a business next to a rival; BIA must be made accessible to everyone who wants to use it. I am not just talking about (potential) customers; you also have to note there must be easy access from BIA to their local suppliers. As long as the there are sufficient links to get to and from the airport, and generally any time of day, for example BIA's current location, anywhere that fits this description and the ones below are okay. Surrounding population. BIA will generally by targeting the population around the airport for the most potential customers, so if there aren't any or there are very little, this is a bad start. Cost of buildings / work. If the building is already built, BIA won't pay over the odds for it, and the cost of the building are usually affected by the cost of land, if that is too high, then this is not suitable place. The reason any business won't
functional areas in oxfam and sainsburys
In this assignment, I will be writing about the different departments in Oxfam and Sainsbury's. SAINSBURY'S One of Sainsbury's main functional areas is distribution. They ensure goods are delivered in the right place, at the right time and in the right condition. Distribution is also involves arranging for goods to be cost effective. * Planning vehicle routes to avoid back tracking. This keeps fuel costs down and saves time. * Making sure that goods are stored appropriately before they are delivered. * Checking if deliveries match the order. Human recourses The human resources of business are its employees. HR is responsible for employing knew staff and making sure each vacancy is filled. * Advertising job vacancies. * Maintaining staff records. * Advertising promotional opportunities. * Checking health and safety and keeping accident records. Finance In nearly all organisations the most important functional area is the finance department. Sainsbury finance staff support the accountants by keeping financial records. * Record money received * Checking and paying invoices received. * Preparing the pay roll and paying the staff salaries * Issuing regular budget reports to all the departments. Customer service Customer service is also a main functional area in Sainsbury's. This part of Sainsbury's handles complaints positively and professionally. They also: *
