Asda And Sainsbury's Business Cycle

Economic conditions A business cycle is cycle which shows where business are in their growth and shows where business are in their growth and show where business are and shows how business growth or either decrease. The UK correctly experiencing 2.6% growth, but is in a recovery phase as growth of the economy is correctly slowly increase again, as unemployment is decrease. The growth has been like this for a year, as the uk is recovery from a bad period of time.one stage of business cycle is boom this when the growth of the business has reach the maximum growth and is at the top of the tale. Another feature of the business cycle is slump this is when the growth has reached the bottom and is completely low. Another stage of the business cycle …show more content…
The price ware has affected price in the UK by decrease the price. In the UK, supermarket has been lowering the cost of product which causes prices to decease because of this. This means that stores like Tesco, Asda and Sainsbury do not have a completive advantage because there is not providing high quality product to the customer, this will mean Sainsbury will have a lack of investment which mean there are not able to expand further which mean their can’t provide product which cause market share to decrease which make Sainsbury lose money and profit to their rivals. The recession has affected Sainsbury has it made people spend less money which cause Sainsbury to lose money and not be able to give high quality product due the prices war. The current economic stage means that Sainsbury will need to low the prices which mean to lower their quality of product this mean Sainsbury will need to lower the …show more content…
There have a huge impact on burrower’s disposable income. The interest rate is set by bank of England and the current level 0.5% and has been at low since 2007. Their set this rate to maintain the economy.one factor is Disposable income is amount of money that they get after all the expanses are subtracted and it is the amount of money that they get to spend on themselves. This will mean that Sainsbury’s will have to have more cheaper products as people will want to buy food and other items cheaper however if the interest rate decreases this will mean that more people will have more money to spend on themselves as they have to pay less money for mortgages a. This means that Sainsbury’s can have more expensive products in their stores as people have more money and this means that people are more willing to pay more money for food. Another factor is if the interest rate is goes up it will mean that it will more costly for customers to finance spend for example using a credit card as they will have to pay more interest rate this means that people will be put off from buy lots of products. This will mean that Sainsbury’s will have to reduce the amount of expensive products in store for cheaper products so that people will buy things but if the interest rate decreases it will mean that more people will start spending more as they are getting charged less for what they are spending this means that more