Therefore, the main challenge Innocent might face is to trying to increase the demand. To increase the demand they might have to lower the price of the goods. This means that they need to provide cheaper price so that customers can afford. Innocent also need to create or develop new products to add extra value. They might go to talk with customers to observe what products they buy and how much they pay for it.
However, pensioners will be hit hard because the extra income they earn from saving will have dramatically reduced, making them worse off. On the other hand, savers may leave the pound for better interest rates in other countries (hot money), causing a fall in the demand for the pound. As a result the value of the pound will fall, making exports cheaper and there will be an injection of net exports. In conclusion, the impact of loose monetary policy will be beneficial to the economy because extra consumption and investment will cause AD to increase which will increase economic growth. However, it takes a long time for changes in interest rates to feed through to consumption and investment and by then the economy may have gotten worse.
This is because the business doesn’t really know what is going to happen in the future. By having an amount of money that the business is able to use for anything it gives the company more support for the year ahead. But if this amount is only a small amount in comparison to the business it could lead to problems. This is because if a the company needs to fix the building the business will have to pay out the price. But if the amount left aside isn’t as much as the price of the building the business will have to use money from elsewhere.
Recession- The recession is an opposite of boom stage. The unemployment increase, most of firms are losing confidence and stops invest or expand. They may change their planning and started to survive. The customers are likely to save money then spend and the percentages of loans are high and may increase. Individuals are losing jobs and the government have to spend more money of benefits.
The most detrimental of these three is when managers set unattainable budgets. This causes personnel and managers to feel discourage and stop working towards a common goal. It also causes personnel to feel detached from the process and may lead to more absenteeism in the department. (TCO B) What is a flexible budget? How can a flexible budget be used as a control?
Economic Advisement Paper ECO372 Economic Advisement Paper In wake of the recent downturn of the Unites States economy many major elements in the economy have suffered. Unemployment rates are still at unsatisfactory levels, expectations remain low among consumers, and consumer income is also lower than satisfactory. Although, current interest rates remain low it is believed that more needs to be done to ensure an economic rebound remains within grasp. The following represents recommended changes needed to ensure United States Citizens do not suffer more than they already have. The economy is considered to be very unstable at the current time, and it is the duty of the United States government to do everything in their power to once again stabilize the once booming economy for the sake of the entire country and its citizens.
Client satisfaction and retention could suffer due to longer wait times and lack of company responsiveness due to a decreased work staff if the telecommuters aren’t available. Because this risk is such a lynchpin to the project’s success, the probability of occurrence is very low. The initial action is to have weekly status meetings, with additional meetings scheduled as needed to monitor and bring additional resources to the table if remaining target dates and milestones aren’t going to be hit. This will also be the plan to mitigate the risk
The weaknesses that Kudler may face would be the financial burden of going public. Sometimes expenses pile up just from seeking help from outsiders to protect the investments. The economy has fluctuated over the years; therefore the company needs to ensure they have contingency plans in place when business may not be as stable. There are ample opportunities that can come about from selecting an IPO. A company's debt-to-equity ratio will usually improve after going public, which tends to result in more favorable financing arrangements (2014, Going Public, para 1).
The budget crisis caused lots problems, and the government is just using some too absolute solutions to fit many of the problems. In the problem with ADCCs, a close down business is more like an act of unwise. If the decision is still considering, there could be some better solution to make out. If we can make some changes in the system itself, then in future we could get a better result for both of the
In addition, there will be the opportunity cost of not having cash available for more useful requirements i.e. supplier discounts, interest income. Therefore, Willow Company needs to hold optimum levels of inventory and increase its sales in order to improve its inventory turnover and cash