Economic growth is when a country is producing more goods to match the consumer demand and consumption. This is massive positive for all businesses as this means the general public are spending more, which will increase a business’s sales and ultimately profit; this may also allow businesses to expand and even open new branches.
India’s current economic growth: India's economy grew by 5.7% in the three months from June, its fastest pace in two-and-a-half years according to an official estimate. This is great for TATA Motors because this should mean an increase in sales and ultimately profit, which means more brand awareness and chance of expansion through branches or products.
The United Kingdom’s current economic growth is: The UK’s economy grew by 3.2% in the second quarter, slightly higher than the original 3.1% estimate. Mark and Spenser’s would be pleased to hear the current economic situation because the UK has surpassed the estimated growth (even it is by 0.1%). This will be seen as positive as this should mean a increase in sales and ultimately profit, as well as a chance to offer new range of products.
Recession is when a country experiences two successive quarters of what is known as "negative growth”. This will mean the public will be more generally cautions of where they spend their income and are more likely to purchase necessities and fewer luxuries. Businesses are massively impacted by recession because people are spending less than the norm; this means a cut in sales and ultimately profit. Employees are impacted hugely by the dip in economic growth because employees asked to leave the company as less staff is needed due to the downfall of customers. Companies usually do this to also increase profits.
The United Kingdom is currently in a double dip recession as it has shrined by 0.2% in the first three months of 2012. Mark and Spenser’s will see this the current GDP as a huge negative because it will means less...