Unit 9 P1 Tesco

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Task 1 Tesco For this task I chose to review’s Tesco organisations because I like how they are improving their growth in low economy percentage and demand. The image of business cycle: Growth Growth Define boom and recession Boom- The boom stage is when everyone feels good. At this stage demand increased, unemployment is very low, high competition at the job places. The business confidence is high so they invest more and expand themselves. The customers feel good. They spend more because they have jobs and sable income. More money is collected by the government from income taxes and VAT. The last, factor the prices tend to increase because of high demand so the inflation is rising. 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. They collected back less from taxes and VAT. Businesses are cutting back on productions but for some customers is good if they have money because the prices are falling as well as inflation. At the boom stage the GDP (Gross Domestic Product) are the values of…show more content…
They do this because they do not want to raise their prices so they can stay on the top of market. However Tesco has different pricing strategy of getting their profit so the indicators like inflation or GDP do not put big impact on or prices. That’s because we are global company and we set our prices not bases on average national economy prices but we set our prices similar in all counties pretty much without looking at the exchange rates. However we use bundling price strategy (serve combo packs) as other supermarket like; Morrison, Asda and

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