Economy BUSS4 examples

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  • Created by: Amy Bird
  • Created on: 15-06-13 14:53
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  • Economy
    • Consumer price index
      • fell from 3.5% to 3% between March and April
    • Unemployment
      • fallen by 45,000 to 2.63m from January to March
    • Returned to recession
      • after contracting 0.2% of the last 2 quaters
    • GBP has fallen against the USD from 1.63 to 1.54
    • British Airways
      • weakening pound, low disposable income, rising fuel price
      • Structural change in deman, consumers preferring flexible low cost carriers such as RyanAir and Easyjet
        • no demand for high quality
      • 91.6% fall in profits, 2500 job cuts
      • staff asked to work week unpaid
      • grounded 60 planes in winter to save money, couldn't do this though because to hard to get slots at Heathrow back
    • Woolworths
      • high inflation
      • high inflation due to fuel costs, effects all transport
      • inflexible business model
      • needed sales to rise by 4% but instead they fell, went bankrupt 30,000 job losses
    • Dominos
      • not effected
      • profits rose 25.2% in the recession due to people not spending money on expensive dinners
        • Exploited this through advertising, share price went up by 2%
    • Lego
      • not effected
      • highly inelastic and relatively cheap, classic product
        • profits rose by 23% in 2009, expansion to Asis
    • Volkswagen
      • Targeted emerging markets, with specially designed cars, small to target Brazil, China and India
    • Interest rate
      • 0.5%


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