Economic analysis

Economic analysis- opinion GAP gross domestic product Levels of Inflation VAT rise Government policy in relation to the business Changes In GAP and In demand Changes In conditions of supply Global Interdependence- the supply chain, ownership, acquisition of capital. D Recession of Uk Trends in the national economy CLC The UK economy has mounted a strong recovery over the past year and we expect this to continue in 2014-15. Most sectors and regions of the economy are now showing positive growth trends, with recent signs that business investment is also starting to pick up.

In the longer term, rescoring could also boost output and employment in both manufacturing and services. 0 However, while the recovery has been rich in Jobs, it has been poor in productivity and wages. Median real household incomes remain well below pre-recession peaks and can only be expected to recover gradually over the next few years. 0 Therefore, while the economy as a whole Is firmly on the road to recovery, It may be some years before many low and middle earners feel the recession Is really over.

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Introduction Tests was been founded by Jack Cohen, on his first day he managed to gain a profit f El and sales fee. Tests is ranked third in world for largest grocery retailer, with its operations in more than 14 countries. The name “Tests” had appeared first in 1924, and its first shop was opened in London. In 1947 the company was been listed on London Stock Exchange and in 1948 it opened the first self-service shops for business. First Tests supermarket was opened in 1956 in Essex. In 1947 Tests started selling Gasoline.

Its annual Turnover in 1979 was around 1 billion pounds. It started its first senior department in 1975 and in 1997 Its first Large stores (extra). Companies main purpose is to create value for customers in order to earn them lifetime loyalty. This strategy made them successful and is now the topmost Supermarket in I-J. Tests apart from being one of the largest retailers for food have also embraced the non food products and expanding on household goods, toiletries, electrical items, clothing etc.

One of the most important strategies of Tests is focus on non food items. Overview The I-J economy recently emerged from a long period of economic recession. National statistics and surveys provide generalized findings of the current state of cuisines during and after recession but fail to offer insights into how I-J based businesses made (or failed to make) strategic responses, during the period of recession and subsequently.

Initial impact of recession and the short and medium- term actions taken in response Impact of recession: About half of I-J businesses said both profitability and turnover were down year-on- year. About a third expected improvement in both over next the six months. Nearly two thirds of I-J businesses were cutting costs with travel being a key area where costs were cut. I-J Business over the next six months, but much less pessimistic about their own company. Due to the ongoing recession I-J and American markets have been affected by economic concerns.

Loss of employment and Lower income available will impact and strategic focus may need to change to lower priced basic products with less focus on higher priced brands and luxury products suggesting a change in pricing structure. 2. Due to modern development and constant changes in technology there are a lot of changes to consumer buying behaviors. Requiring further analysis – as technology develops consumer buying patterns change which ill result in product areas requiring evaluation constantly to keep up with the demands. 3.

Rising raw material costs from both food and non food will impact profit margins overall. 4. Sourcing changes to Far East locations with regards exporting restrictions on some non food product areas will reduce margin rates on products with already low margins. 5. Tests has always feared the threat of takeover from the market leader Wall-Mart who has both means and motive to pursue such action. Wall- Mart has been a leader especially in the US market for few years now. With its alliance with SAD in the UK they are one of the nearest competitors.