1. Describe the stages of the business cycle.
The stages of the business cycle are; boom, downturn, recession and recovery.
• Boom - the boom stage is a period of time during which sales of a product or business activity increases very rapidly. During the boom the economy grows, jobs are plentiful and the market brings high returns to investors.
• Downturn - the downturn stage is a slowdown in economic activity. When there is a high level of inflation in a boom, it can lead to a recession.
• Recession – the recession stage is a period of general economic decline that last longer than a few months. It is visible in industrial production, employment, real income and wholesale retail trade; this stage begins just after the economy reaches a peak of activity and ends as the economy reaches its trough.
• Recovery – the recovery stage is a time when the ...view middle of the document...
Reduced income leads to reduced entertainment, dinning and extracurricular activity expenses; people cut back on extras during a recession, so many families must make drastic changes to their pre-recession lifestyle. Recession also affects the education; many families cannot afford to send their children to college during a recession. Furthermore, the college experience changes for students who do attend, as universities fill classes with too many students, or cut classes, majors and staff, all while increasing tuition.
The effects of a recession on low-income families lasts a lot longer than the duration of a recession.
3. Analyse the services provided provided by UNISON’s There for You to support its members during a period of recession.
There for You is a registered charity established by UNISON to benefit their members and dependents. It was established in 1993 to help the members of UNISON in times of personal difficulties and hardship. This charity provides financial assistance, general advice, debt line support and wellbeing breaks. During recession There for You gives grants to low-income families to help with their bills, school uniforms and supplies for their children; they also help with job searching. In 2012, There for You gave more than 4,00 grants to members totaling nearly 750,000 Euros.
4. Evaluate the importance for business success of developing strategies and tactics that change with the different phases of the business cycle.
The strategies and tactics that you employ at different stages of the business lifecycle need to adapt, like humans do as we live our lives. It’s important that you refresh your business model to adapt the business lifecycle. Your core challenges, and how you respond to them, will be different as your company grows. It’s Important for all businesses to learn strategies and tactics not just for growth or downturn in the economy, but also to be able to budget and save when the economy is growing.