In this task I will be comparing the challenges to my selected organization and their business activities in the two different economic environments. Challenges in boom stage (1995-2008) In a boom stage, Asset goes to though challenges that may impact on their performance. When a boom in the economy occurs the main Stages are high inflation, competition of labor and shortages of supply. The boom stage generates a high inflation; this is because of the rise in the economy, and the prices, therefore, increase.
This occurs because of shortages of supply, rodents or service are less, and many customers are chasing after it. This leads to business having to employ, and this is when there’s competition for labor. There are many jobs, and everyone is trying to go for the most convenient one leading to competition in it. When this happens, Asset could make sure they give good bonuses and benefits to having enough workers for the amount of productivity that needs to be made. This is a challenge to Asset because they have to make sure customers are satisfied. Also, they will have to employ staff to be able to produce and serve their customers.
The boom stage leads to inflation, which then lead to a fall in the economy that affects Tests negatively. Challenges in a recession stage (2008-2014) In a period of recession, there are a lot of changes Asset needs to face in order to survive and help them to continue operating. In a recession period Tests goes through a decline in demand, customers don’t buy like first leading to low productivity. This has a fall and cash flow problem, the performance of the business drops. Asset could control him by offering sales and offer deals to attract customers.
During the recession, inflation occurs due to the economy. When inflation rises, jobs decrease, productivity decrease and prices are also high. This slows down the economy, to a fall that will then have to go through a recession to come back on an economic balance. Also in a recession stage customers’ confidence is low, customers would save and buy only the essentials to survive, and this is because they don’t have enough money to travel. This is due to the decline in employment. Asset could control this by having good marketing plans to attract customers and making them buy their tickets.