How Organisations Has Been Affected By Two Contrasting Economic Environments
When the country is in the recession everybody is trying to save money and go to shops which are cheap. Some companies cut jobs and are trying to maximise profit. Lidl is making lots of profit in the recession therefore they don’t have to worry that there is a recession because everybody is trying to save money and people are going to cheap shops and Lidl is one of them and because of that they are making lots of money in recession.
Lidl is in England for a very long time and when recession came, it made tens of thousands of people to try Lidl for the first time.
The same thing happened to Aldi. Lidl and Aldi have cheap products at high quality. When the country is at boom then lots of business like Lidl hire lots of people therefore there is high employment level and their wages will go high as well because they want to attract more people because the business can afford to hire lots of people therefore the business will run in a very good way also businesses are investing more to make the business expand and meet peoples demands, and in a boom people have lots of money which they want to spend on their want and needs and because of that shops will make lots of profit.
Human resources in a recession have to make hard decisions, one of them is cutting jobs because they can’t afford to have lots of employees, finance department have to calculate how much money they can spend on the business and try not to bankrupt therefore they would have to change their suppliers on cheaper suppliers which have less quality products as they would have from their normal suppliers and that could affect their business because they could lose customers. The company would have to stop investing and save money for their suppliers and pay their employees.
He company would have to stop investing and save money for their suppliers and pay their employees. If the country is at the recovery, then Human resources might start hiring new people but not a lot like they had at boom therefore unemployment will fall a little. Finances will have to consider about increasing production and start investing into the business again, demand would rise and because of that sales will rise as well therefore slowly the business will be making profit.