...How the current recession has impacted on the sales of various businesses in Barbados 1.1 Introduction Recession is being experienced all over the world, it changes the way countries and economies develop and how they function. Based on the region I live in, which is the Caribbean. I have decided to focus on my country which is Barbados; the centre of my focus is how recession impacts the sales varies business in Barbados. The business I am testing this theory on is Moniesha Snackette it is a small business, owned and operated by Violet Taylor, which is based in Belleplaine St. Andrew. ` First and foremost we must first define what recession is, ‘recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.’’ Sales is define as, “the act of selling a product or service in return for money or other compensation. Signalling completion of the prospective stage, it is the beginning of an engagement between customer and vendor or the extension of that engagement.” Sales are very important to an organisation, without sales, the company does not make a profit and if the company does not make a profit is fails, so the amount of sales a business has determines whether or not a business is successful or whether it fails. Unfortunately because of the recession Moniesha Snackette has been experiencing some difficulty in selling and making profits, as mentioned...
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...Recession In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity.[1][2] Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation. Definition In a 1975 New York Times article, economic statistician Julius Shiskin suggested several rules of thumb for defining a recession, one of which was two down consecutive quarters of GDP.[3] In time, the other rules of thumb were forgotten. Some economists prefer a definition of a 1.5% rise in unemployment within 12 months.[4] In the United States, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER) is generally seen as the authority for dating US recessions. The NBER defines an economic recession as: "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment...
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...Project Report On Impact of Recession in India Submitted to: Submitted by: Mrs. Kawaljeet Kaur Harsimranjeet Kaur Regd: 625241502 In the partial fulfillment of the requirement for the BBA degree course of the Swami Satyanand College of Management & Technology. INDEX Introduction to recession Definition of recession Attributes of recession Causes & Effects of recession Stock Market & Recession Recession & Politics History of Recession Current crisis in the US Impact of recession in India Consequences of US Recession Conclusion Bibliography Acknowledgement If words are considered to be sign of gratitude then let these words convey the very same. I am highly indebted to lecturer Miss. Shveta, who has provide me with the necessary information and also for the support and her valuable suggestions and comments on bringing out this report in the best way possible. I feel great pleasure to cordial thanks to all faculty members of management department of SSCMT who sincerely supported me with the valuable insights into the completion of this project and I am thankful to that power that always inspire me to take right step in the journey of success...
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...“It’s a recession when your neighbour loses his job; it's a depression when you lose yours.” These wise words from a former U.S. president made me question how true this really is in reality. It is obvious that our minds and what we think play an enormous role in what goes on around us. Our thoughts seem to take over, causing us to act or react in a certain way. These reactions in reality are caused by our immediate perceptions of the given subject, issue or concern. What if recessions are caused by our reactions to things around us such as the media and so called “experts”? The recession had to start somewhere. How many times have you turned on the news hearing “we are in a recession, we have to save our money and stop spending”? The majority of people will hear this and follow along because of the constant charts and graphs supposed experts bombard the public with. Contrary to popular belief, people’s perspective of a recession, can in actuality, cause and fuel it even further. The famous Greek philosopher Plato, in his work Allegory of the Cave provides insight into how a recession can be perpetuated due to the public’s perspective. In his allegory, humans are depicted as prisoners chained in a cave only seeing shadows from the light and creatures that walk behind them. One of the prisoners was released and was exposed to the reality outside the cave. Allegory of the Cave can be interpreted in many ways. The way I see it, people accept reality from the perception...
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...any regard to his or her creditworthiness. This was brought about by the “Spend yourself out of the post dot com bust recession” policy of the American government at that time. The end result of the Sub-prime crisis is manifesting itself in myriad ways. There are direct and indirect implications not only for the United States but for the entire world. The Sub-prime that was brought upon by the American financial system upon itself is spreading its tentacles around the world. People who were not even remotely connected with the Sub-prime crisis are being adversely affected. National Bureau of Economic Research (NBER) National Bureau of Economic Research (NBER) is the official agency in charge of declaring that the economy is in a state of recession. They define recession as: “significant decline in economic activity lasting more than a few months, which is normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales”. BUSINESS CYCLE The term business cycle (or economic cycle) refers to economy-wide fluctuations in production or economic activity over several months or years. These fluctuations occur around a long-term growth trend, and typically involve shifts over time between periods of relatively rapid economic growth (an expansion or boom), and periods of relative stagnation or decline (a contraction or recession). Business cycles are usually measured by...
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...Running Head: THE IMPACT OF THE GREAT RECESSION Counter Measures of The Great Recession XX XXX ECON102 I003 Macroeconomics 26 Jan 2013 Top of Form [pic][pic][pic][pic] Bottom of Form What is the economic meaning of a recession? As stated by Claessens and Kose (2009) “There is no official definition of recession, but there is general recognition that the term refers to a period of decline in economic activity” (para. 2). A sequence of events must take place in order to create a recession. The U.S. having the largest economy in the world is obviously not immune to the effects of a recession. The Great Recession is proof of this, as the support structure began to fail. The support structure of the economy is the stock market, housing market, and job markets. As each in its own way began to fail so did the U.S. economy as a whole. The U.S. government used fiscal policies to attempt to stabilize the economy. Fiscal policies include an increase government spending and at the same time reduce taxes. The objectives of the fiscal policies are used to create a boost in the economy. A decrease in taxes means an increase in personal disposable income. The increase in income will lead to an increase in private spending. The country’s consumer spending leads to an increase in aggregate demand which increases the Gross Domestic Product (GDP). The overall goal is to begin the process...
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...Task 1: Boom and Recession (P5 – Part 1) Current | Boom / Economic growth | Recession | Country - % - Year | Country - % - Year | Country - % - Year | GDP Growth rateUK – 0.5% 2015CHINA – 1.8% 2015 | UK – 1.5% 1983CHINA – 11.7% 1978 | UK – 0.3% 2008CHINA – 9.2% 2009 | Inflation rateUK – 0.1% 2015CHINA – 1.3% 2015 | UK – 4.6% 1983CHINA – 8.3% 1978 | UK – 3.61% 2008CHINA – 0.9% 2009 | Interest rateUK – 0.5% 2015CHINA – 4.35% 2015 | UK – 9.8% 1983CHINA – 7.5% 1978 | UK – 5% 2008CHINA – 2.52% 2009 | Unemployment rateUK – 5.3% 2015CHINA – 4.05% 2015 | UK – 2.6% 1983CHINA – 4.9% 1978 | UK – 5.4% 2008CHINA – 4.2% 2009 | Describe how the current economic environment is impacting on your two chosen Businesses (P5 - Part 2) TESCO Tesco is negatively affected by economic elements because it affects its price profits and the cost of its products and services. Unemployment rate is one of the factors that affect the company’s profitability. Unemployment decreases the demand for its products and services and in the end, its profitability. Unemployment is a major concern to the company because it is beyond its control. It affects its marketing opportunities and its overall performance in local and international markets. Even though Tesco is expanding its operations globally, it doesn’t make the profits it would be able to make because of unemployment. Its income over the past few years have greatly increased but since it is largely dependent on UK market;...
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...“For the past 15 years, the consumer’s story has been a remarkably happy one in most markets, a tale of low inflation, high employment levels, rising income and, importantly, the unflagging desire of consumers to consume” (Accenture, 2009: 3). But since approximately 18 months the world economy is really struggling and resides in a severe recession which means according to the NBER (National Bureau of Economic Research) a “significant decline in economic activity lasting more than a few months” (recession.org-homepage, 2009). But how has this global economic crisis actually happened, how has it affected particularly people’s consumer behaviour of products and services and what will be going on in the future? The worldwide financial fiasco has occurred in a kind of domino effect and has its origin the US mortgage market. The turning point was, as the so called sub-prime loans lenders default their mortgages, banks could not sell the over taken houses anymore because none wants them and the real estate supply became much higher than the actual demand. As a result housing prices have tumbled down dramatically. Finally the financial bubble burst as banks, investors and lenders stopped buying their collateralized debt obligations from one another and the whole financial system was frozen. Since that time a lot of banks, companies and private households have gone bankrupt. To tackle the crisis financial institutions like the central bank have tried to boost the economy in...
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...WEEK 3 ASSIGNMENT: THE GREAT RECESSION JONATHAN MOONEY MARCH 24, 2013 MBA 510: ECONOMICS Most economists consider the Great Recession of 2008 to be the worst financial crisis since the Great Depression. The sequence of economic events affected the entire global economy, with certain countries being hit harder than others. In the end, the collapse resulted in the total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. The housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to a global recession and contributing to the European sovereign-debt crisis. Most experts agree that one of the most important contributors to the recession was the collapse of the housing bubble. This led to an extremely high rate of loan defaults for people who probably should not have been given those loans in the first place. Due to the practice of predatory lending, many unsuspecting people were offered mortgages that they could not afford; however these people were convinced by lenders and realtors that they would be able to refinance those properties in a year or two and make tons of money. Since, the housing market was strong at the time, many people jumped on this opportunity,...
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...By Prof. Dipika Lecturer in P.G. Dept. of Commerce K.L.S.D. College Ludhiana Global Recession and Impact on Various Sectors of Indian Economy ABSTRACT The word 'Recession' denotes a temporary period of economic decline during which trade and Individual activities are reduced. Till date, the world has witnessed a number of economic recessions that brought the trade market to a standstill and left the economists and analysts with valuable lessons to be learnt for future. Globalization and liberalization have contributed a lot in making the entire world a close knit economic unit. In an interconnected global economy recession and economic turbulence in one part of the world has the potential to disrupt the economies of other countries in a major way. The economic slowdown in US economy in 2008 caused by the burst of housing bubble engulfed the entire world in its grip. This research paper aims to give a detailed account of US Recession-2008 and its impact on Indian Economy. The financial crisis has not only affected United States of America, but also European Union, U.K and Asia. The Indian Economy too has felt the impact of the crisis to some extent. Though it is difficult to quantify the impact of the crisis on India, it is felt that certain sectors of the economy would be affected by the spill over effects of the financial crisis. INTRODUCTION The current global financial crisis is rooted in the subprime crisis which surfaced over a year ago in the United...
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...A recap of the events building up to The Real Estate Bubble, the causing factors of The Financial Crisis of 2008 and the likelihood and implications of an Economic Recession in 2016 Karan Sharat Nath Pace University, Lubin School of Business Kn31474n@pace.edu ------------------------------------------------- Table of Contents 1. Abstract 2. Introduction 3. The Real Estate Bubble and Great Recession 4. Signs that point towards a Global Economic Downturn 5. Conclusion: Consequences of a recession in 2016 6. Work Citied ------------------------------------------------- Abstract This research paper aims to briefly recap the events that led to the real estate bubble and global financial crisis of 2008, collect data that could indicate a financial downturn that could lead to a recession that is sparked in 2016 and understand the implications that a recession in 2016 would have upon the Global Financial System. The recession that ensued in 2008/2009 was the worst widespread downturn witnessed since the Great Depression of the 1920’s and 1930’s. Since the peak of the downturn the S&P has almost doubled and unemployment has dropped by nearly half. But at present many vital indicators that monitor US growth and economic activity are displaying so very troubling signs. With the majority of this growth over the last decade being enabled by central bank support and cheap money, expansion is not sustainable. Eventually the...
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...INTRODUCTIONS The Global Financial Crisis of 2008 is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It resulted in the threat of total collapse of large financial institutions, the bailout of small and big banks by national governments, and downturns in stock markets around the world. In United States, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer confidence, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis. The bursting of the U.S. housing bubble, which peaked in 2006, caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally. Economies worldwide slowed during this period, as credit tightened and international trade declined. Governments and central banks responded with unprecedented fiscal stimulus, monetary policy expansion and institutional bailouts. In the U.S., Congress passed the American Recovery and Reinvestment Act of 2009. In the EU, the UK responded with austerity measures of spending cuts and tax increases. Causes of Financial Crises Subprime lending During a period of intense competition between mortgage lenders for revenue and market...
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...Recession is a particularly emotion-provoking word, especially considering that it has enveloped far too much of the economic climate over the past decade and a half. Whether is was the swift and absolute burst of the dot-com bubble or the implosion of the housing market, recessions have presented unique and troublesome economic times that have destroyed trillions of dollars or wealth and struck fear in business, consumers, and pretty much everyone that falls between the “1%” and those living below the poverty line. Recessions, by definition, are periods negative GDP growth that have occurred over at least two consecutive quarters. Recessions have been studied, analyzed, and written about from virtually every angle in everyone’s quest to identify and prevent future ones. One the more intriguing aspects of recession analysis is a look at how businesses choose to invest at the beginning of an economic recession given the history of the government promoting investment incentives or investment credits. In order to examine how a firm may act in anticipation of business investment, friendly policy it’s vital that we examine how they have acted when these policies have been enacted and legislated during past recessions. During The Great Recession of 2007-early 2009, pro-business investment stimulus measures were enacted to increase loss carry backs and additional incentives for firms making investment in these times of extreme uncertainty. Each economic measure taken in the wake of...
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...during the recession. This is a case study which revolves around the steps taken by managers and corporations in improving the attitudes of employees towards recession. Real life examples are given in the form of consumer services giants like Bain & Co, Home Depot and Best buy. Now let us look at the facts and the answers to the questions asked. Facts Presented in the case: 1. Bain & co.’s CEO Steve Ellis hired people even during the recession. He added consultants in the hot-growth areas such as emerging markets and targeted experienced consultants who were left stranded during the hard financial times. 2. Home Depots chairman and chief executive Frank Blake set realistic goals to boost employee morale in spite of handing pink slips to some of the employees. This resulted in many employees getting high bonuses thus resulting in high employee morale. 3. Companies which took advantage of employees in the downturn were rewarded with many employees leaving the company. 4. Best buy found ways to boost employee morale by getting them involved in the organization. 5. JetBlue has cut back across the board and over the past year –delaying aircraft orders, trimming head count through voluntary unpaid leaves and even shedding the free pillows from its aircraft in order to cut costs. Identifying the Key issues: The key issues that can be observed from the above case are as follows. 1. Corporations all over the world are facing the effects of recession and the major...
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...for the companies on the whole. While all the functional wings are contemplating a cut in their spending, austerity drives are seen as the ‘need of the hour’, it’s a catch twenty two situation for the marketing wing. These are frightening times for any CMO. Financial markets are in chaos and now the real economy seems to be taking a nosedive. How should you be prepared to react? What's the optimum marketing strategy in a recession. In the following paragraphs we try and gauge into how marketing acts as the one department which identifies recession as an opportunity to gain some more ground at the competitive level. Roger Graham & Kristina Frankenberger ,professors of management at OSU &WOU respectively, studied data from five recessionary periods since 1971, sampling data from more than 3,000 firms that demonstrated a 4-year advertising contribution to found that when adjusting for inflation, advertising expenditures contributed to increased earnings by firms for up to three years. The greatest impact occurs in the year immediately following the recession, and especially for firms offering consumer goods or industrial products, as opposed to firms offering services. MarketSense compared 101 household name brands during the recessionary period 1989-1991. Jell-O, Crisco, Hellman's, Green Giant and Doritos saw sales drop by as much as 26-64%. Jiff peanut butter raised ad support and sales went up 57%; Kraft salad dressings saw a rise of 70%. In the beer category, overall spending...
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