A2 AQA BUSS4: Strategies Businesses could have adopted to prepare for the recession.

I have research general motors, is that okay because its an america business?

I wouldn't say pay 'rise' freeze is not so much a cost reduction method, unless it's unadjusted to inflation. A pay 'rise' freeze is a way of pausing growth, it's ok to limit growth and expansion plans but what I was saying previously is that significant retrenchment is likely to damage the long term prospect of the firm. Remember during a downturn, consumers are more money conscious, so inevitably, they would be looking for 'good value for money' but this should not be mistaken for cheap cheap prices. It's no good selling something at rock bottom prices that people don't want. Evaluation- consider whether defensive strategies such as cost reduction etc, is a sign of weakness in the business itself and the recession has made it more prominent than before? Actions to cut investment and growth are usually short term in nature, but have you considered the long term effect? It may depend on the type of business, in a recession there's winners and losers! Same may even argue, that strong and stable firms are able to take advantage of the low interest rate and the loss of competition etc.

i focused on domino's pizza and starbucks but now i'm unsure about starbucks seeing as its more american ... they mentioned it on the tutor2u workshop though so should be ok?

thank you that was very useful.

i'll be posting one of my essays once i type it up so maybe you guys can have a look (if u have time or if u want to) and help me to improve it.

Unit 1 is all about the definitions , u do know u actually get marks for defining the key word in the question.

.....yes, 2/7 marks.

thanks. this helps. so i have just researched Dominos UK which has expanded in the recession, opening 176 franchisees and their dividends increased by 31.4%...

they say that one of reasons their sales has increased is because of the poor weather and the recession itself. Also beacuse they have used sales promotion such as "two for tuesday"

so wht do you guys think, did they prepare for the recession or was their expansion stretegy and sales promotion part of their reaction to the recession?

How do you get on to that 78 pg info pack on 'post 23?' It keeps saying i can not access it, any help please? cheers

Guys im getting confussed, i didint know we had to reach about other company, i thought only on those points, so we gona have to relate the firm in the case study to our firm?

Correct - you need to be able to address both the firm provided in the exam paper, and also bring in evidence of your research on at least one other firm or industry. Comparing and contrasting is a key part of the Section A essay.

Jim

How many case studies do you think we should learn? Obviously some are more flexible than others covering more of the specification, but my teachers keep telling me different things..

If you have time, I would go for three or four. It is important to go into some depth, so dont spread your research too thinly.

I would also try to research firms / industries that have had contrasting fortunes during the recession.

Jim