Btec Business Level 3 Unit 38 P1

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Unit 38 P1 Economic report From Ahmad Abby To Annette Madra Purpose of this report: In this report I am going to give a definition of the business cycle and the impact of changes in the economic environment with the emphasis on the effect that a recession would have on a company like Aldi. What is the business cycle? The business cycle is a constant but irregular activity in the economic environment. There are four different types of cycles in the economic environment these are as follows, the first one I am going to talk about is boom which is fast economic growth this is the peak of the economic environment. The second on is recession which is the economy slowing down, then the there one is slump this is when the economy hits rock bottom. Then the fourth one is recovery this is when the economy starts to expand again. Throughout the business cycle there are many alterations in the economic activities. There are years that we would see the economy at a strong point and there are years that the economy is slow and…show more content…
These methods are usually applied through the central bank in the UK The monetary policy contains buying and selling of national debt, changing the credit restrictions in the county and changing the interest rates this is done by changing backup requirements. I am now going to talk about how monetary policies affect aldi. Over the years since the country has been through some difficult financial times the interest rates have risen and this has affected aldi. This is because there is less disposable income for consumers to spend which results in the buying only the essentials which they need to go throughout the week. On the other hand this has benefited aldi because more consumers would rather go to aldi than Tesco or Morrison’s because they are cheaper and they have good quality on the goods and
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