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The Effects of Recession

In: Business and Management

Submitted By shiverspro
Words 419
Pages 2
The Effects of recession on M&E in Manchester
The effects of recession is quite the same everywhere around the world leading to the same slowdowns in industrial production and slumps in customers spending. Sales revenues and profits suffer high reductions.
In order for employers to cut losses they freeze or stop hiring new employees. Buying new equipment, researches and development may be set aside. Late payments from both sides will reduce the valuation of bonds, damaging firms credit rating, and will decrease future financing. Employees moral suffer as well as everyone’s work is optimized causing longer work hours and higher productivity demand, usually on the same wage. Quality in many sectors will fall as a result of cost-cutting measures. Advertising is also often considered as a major expense. Putting it down will lead to a fading interest in smaller brand names.
The recession has affected most business from all over the world but more important lets pay attention to what has happened to the hotel industry. The less affected hotels were those in global markets and those that give out their services to leisure travelers. Leisure travelers continued traveling every year even during the recession. On the other hand, business travelers changed their perspective on the amount of money to spend and the amount of trips to make. Some businesses are canceling meetings which are usually held in another country and are instead made using technology, like video conferencing as it is quite cheap considering the expenses usually incurred when traveling which include flight, accommodation, food etc.
In response to the recession hotels industry have created business plans and projects concerning their approach to the market. The development of good strategy is essential to success. More aggressive approaches are being observed. Any unnecessary costs are being cut

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