Global Business Environment
Recession is one of the main problems that the world is facing today. The recession hit a lot of multinational companies and affected many businesses which went bankrupt as they could not cope with the lack of funds. Merrill Lynch is one of the common examples, being one of the richest companies to being declared bankrupt just into the recession.
During such tough times it is important for companies to restructure their business to obtain stability as sales do decrease. Tesco, one of UK’s biggest retailers has implemented new strategies and discussed in this report is all the steps that the company took in order to counteract the threat opposed by recession.
Also discussed is a brief overview of what led to global recession. It is important for company owners to understand that when the recession hits they are very likely to suffer in their businesses and hence limit all their damages in order to obtain a stability in their business.
Table of Contents
Causes of global recession 1
Tesco PLC 2
Problems faced by the company 4
Measures adopted by the company 5
Global recession is defined as a length of time whereby the growth of economy slows down all throughout the globe. During that period there is also a decline in productivity . There are several problems that are faced which affect the business as well as the population. This happens due to inflation of prices, fall in share market and increase in unemployment and bankruptcy. Therefore during the difficult times capital utilisation becomes really important.
Tesco PLC was badly influenced by recession in the first four months. However the company reorganised itself and implemented new business strategies to cope with the lack of funds. They have since then progressed and carried on their status as United Kingdom’s best retailer. A detailed analysis on the current...