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Candleford Conservatories Ltd - Assignment Example

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Candleford Conservatories Ltd

A rise in foreclosures will hurt businesses in that those who can be potential customers will not be in that they are now not concerned about doing business with companies to obtain the things they want, they now have to be careful with their spending, purchasing only what they need and not what they want. Sometimes, they may not even be able to purchase the things that they need. Almost everyone in some way shape or form will feel the effects of the damage that an eight percent unemployment rate to have on the national economy.
If there are problems in the UK, as far as the economy is concerned, there will also be problems with UK international trade in that there will be less goods to export, being that the workforce who will contribute to producing such goods will have dropped due to lack of employment that has resulted from the fall in the economy. Not to mention, inflation will also affect the international trading in that other countries will have to pay more for goods, which in the long run will hurt profits. This will hurt the economy considerably in that the UK will not be able to make money from outside sources as easily as before.
The significant unemployment rate will cause there to be a lack of demand for conservatories, which will cause the customer base for Candleford LTD to be significantly less. Unemployment means that there will be a number of foreclosures. The more foreclosures there are, the less that will have homes, and if people cannot hold onto their homes, then conservatories cannot be installed and purchased. When the demand for conservatories drops, this effects everyone at Candleford Conservatories LTD, as the lack of demand can effect whether or not some will continue to have jobs, since the profits that the company brings in supplies workers with their salaries.

12) Illustrating your answer with examples related to the case study; explain the difference between strategic and tactical business decisions. (6)

The differences between strategic and tactical business decisions are that strategic business decisions would use the company's history to make future business decisions, carefully strategizing what moves will be made next, as it pertains to the success of the business, and tactical business decisions are methods that the company will be able to employ in order to be successful, such as what tactics that will utilize to target their client base and improve their operations. An example of a strategic business decision is when Paul analyzed the company's history before he made any decisions about the company's operation. For instance, he paid attention to what his father did. He took not of what worked and what did not and carefully considered all factors before taking a first step. A tactical business decision was made when Candleford had to figure out how they would function in a down turning economy where not only did the industries that they so heavily depended upon were drastically effected, they had to be creative in getting customers to purchase conservatories.

13) Giving reasons to support your opinion, explain:
a) Which industries or sectors of the economy are likely to suffer less ...Show more

Summary

An eight percent unemployment will affect the UK national economy in that it will fall drastically in that those who are unemployed will not be able to contribute in helping in stabilizing the economy or helping it to grow. If anything, they will drain it in that they will start to collect benefits for unemployment…
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