A growth company tends to have very profitable reinvestment opportunities for its own retained earnings. Economic growth will affect Etisalat as it would increase their profits due to more people wanting more products and wanting to spend their money. As people have more money to spend on luxuries instead of the essentials it means that the higher value products will be brought. For example the Andrex toilet rolls will be brought instead of Etisalat value, because of this it means more money is being spent in the store which is an advantage for Etisalat. Recession occurs when people involved in business become more cautious and: * Customers cut back on spending, and start to save more * Manufactures and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers.
If she makes profit she can invest in new equipment or machinery e.g. new baking oven. This can also benefit to be more motivated to work harder like taking new risk e.g. new types of cakes. Moreover the importance of profits to any business is that they need money to pay rents, insuranceand wages if the business makes no profit and more loss they may lose the shop because they cannot pay the rent.
If John Lewistreins their staff it means that staff will have more skills and knowledge so wages should go up as well, but government is spending high procentige on NHS and schools so if the government will not pay more money for trained staff they will be looking for another job. Also the business might set higher targets for staff e.g tpo provide the best service to its customers,longer hours, cheaper prices, discounts, offers. More people will be interested. John Lewis is loceted in the hight street so its easy to find
In order to avoid making a further loss, if another recession was to occur again in the future, I would suggest that a reduction in employees would be beneficial for the business. By making this vital decision, they will be saving an immense amount of money as they will not be paying as much wages as they currently are. I would also recommend having more frequent special deals (such as ‘BOGOF’) as this will slowly but surely attract customers to spend their money in Tesco rather than another supermarket. However, these special deals should be genuine special deals as Tesco have been known to increase prices and then claim there is a special offer going on (See Appendix 34). Regarding political factors, I think the grants/loans which are borrowed by Tesco via the government would impact on the business negatively as they will have large sums of money to
Using more effective manufacturing systems and double shifts has been implemented to achieve this. This is a small increase in comparison to the sales of competitors, showing that the global market could provide a number of new opportunities for the company as it grows. However, the opinion of the managing director, Butler-Adams,the company believes is that a significantly higher number of sales in a short time period could undermine the brand’s image which may decrease the desirability of the
Henri Racamier, the husband of Louis Vuitton great-granddaughter Odile Vuitton, become the head of the family business at the age of 65. The Vuitton-Reacamier family wanted to set out and focus more on a different market that they believe that would make their company even more successful, the Japanese Market. Within a matter of couple of years working with the Japanese market, LV had open two store fronts in Japan. In 1987, the creation of Louis Vuitton Moet-Hennessy (LVMH) established the largest luxury-goods conglomerate in the world (Pearce & Robinson, 2013). By 1988, after the merger with Moet et Chandon and Hennessy (the leading champagne and brandy companies on the market), LV profits had increased 49 percent higher than in 1987.
This motivation may lead the government shareholders to focus more on employment rates rather than proper corporate function. Also the fear of repercussions that might happen if the goals of the government (creating more job opportunities to the citizens) are not achieved might have pushed the other shareholders to comply with these goals. Addition to the Piech’s expectation of market domination, the government’s expectation of creating more job opportunities may have created the culture where there was
All of these aspects would help raise store sales. Parkleigh’s employees are offered discounts under certain circumstances, meaning in his mind his employees might try to sell the discount products to the customers. Although just because employees are employed within a store, doesn’t necessarily mean each employee have enough money to buy the products within the store. So in the case the store prices maybe a on the pricey side a little higher than normal, which means using a discount would make the items more reasonable. Kaufmann is considered a middle class store, where structuring would need to have more attention.
Reducing price will increase sales volume at least for short time but it not good in building the brand and increasing the brand market share as one the analyst has clearly stated that a price sensitive consumer will easily shift to another brand which offers a lower price than La Shampoo, thus rendering the entire exercise fertile. Another positive out come from Eric’s solution is that the brand can buy time for Caroline to think of a better decision. Beth’s solution is to create new advertisement campaign. This solution seemed better to improve sales but there are still no specific changes that suggested to repositioning La Shampoo on the consumers’ minds. Taking into consideration
And it is only fair that the shop that makes more money has to pay more rent. Department stores such as Galeria Kaufhof have wide range and amount of products whereas specialized stores such as H&M and jewelry stores have limited. Thus, department stores attract more people and those people are usually inclined to look around other stores such as H&M and the jewelry store. This increases mall traffic