Unit 9 M3

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Introduction In this assignment I will design a leaflet. This leaflet will be based around Tesco and it is describing aspects which affect business such as Tesco in the terms of: Economy, growth and recession. I have decided to choose Tesco instead of an organisation such as Oxfam as I would be able to find a lot more information for Tesco than a charity like Oxfam. I will also be describing the economic climate changes and how it has had an impact on my organisation which is Tesco. I will also provide evidence throughout my research about the other economic climate change and then further relate it towards my chosen organisation. . Recession - In terms of economics, a recession is the general slowdown and inactivity in the current economy.…show more content…
The recession has caused many issues in terms of sales and success for Tesco. It has a negative impact as the recession affected the income of the whole country, so the customers for Tesco had less money meaning fewer products could be purchased as they charge more money than other supermarkets. One thing which has happened in the 2008 recession would be that Tesco lost customers to cheaper and more efficient supermarkets such as Aldi and Lidl. This has greatly impacted Tesco during the time of the recession as they were struggling as they did not have the customer base with high income to purchase Tesco’s services and products. This allowed Aldi and Lidl to thrive from this and become more successful due to Tesco performing poorly in the recession. In response to this Tesco started to make more ‘Tesco Value’ products which helped them maintain some success during the recession as people started using Tesco again as they advertised the low value products to the customers which allowed them to get through the recession without a major loss. This was an important change to maintain the success of the business as Tesco with the changes still lost around £4bn of value of the company from the 2008 recession. Tesco branded products also have higher profit margins on them which can make them very effective as they can a lot of profit from the individual product sales. It is important to have a high profit margin as it means that there would be more room for success and sales which would help Tesco during the recession. The importance of losing customers to Aldi and Lidl had a very negative impact upon Tesco as they would lose profit and sales and therefore further making them struggle during the recession. The importance of the introduction of Tesco value products was very effective when it came to the recession as Tesco created more choices for the customers so it helped them

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