The impact Recession and recovery have had on Berendsen and other companies e.g. Translation agencies UK

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Most firms have difficulty adjusting to the different changes of the economics environment however Berendson has used different tactics to battle odds of overcoming them.e.g. Translation agencies UK


Firstly through the recession Berendsen was aware that the demand for their goods and services in the UK would decrease so business decrease the costs of their goods and services. The firm could do this because they already purchase their supplies from developing countries such as the Far East and china. By purchasing the raw materials they need in bulk then they can receive more of a discount. The business reacted to the lack of business by decreasing the amount of stock they have for products and services that became less popular.

Recession and recovery

However textile products such as bedspreads and covers are consistently on demand so the company continue to purchase the raw materials needed for these products. The firm also allocates local managers to create intelligent business plan to support the firm through the rough economic period such as the quantity of raw materials needed, financial statements indicating how much the firm is saving through buying in bulk and also how much of staff is essentially needed to continue in the running of the business.

The business also uses their financial experts e.g. accountants, they discuss the best way to deals with the increase on value added tax and also the income tax, these factors can hugely affect how much the company has to spend on goods and services. The business’s financial experts must also consider the exchange rates to making sure that they constantly keep track of the value of the pound sterling and euros.

In addition the firm has also maintained a good relationship with the banks they have been borrowing capital from; this means that the company has a low credit rate and the banks will also be committed to supplying more funds to the business.



In the recovery period the firm begins to increase the quantity of their supplies. Due to the fact the company assumes that demands will increase for their goods and services because unemployment rates have fallen. This means that more customers will have more income to spend on goods and services that are not crucial. Also the firm begins to employ more staff to prepare for the increase in demands. The recovery period allows the firm to continue to produce more goods and services, this boost in general income allows the firm to experiment by offering new products and services to increase the firm’s income. In addition the firm can also expand their business through more parts of Europe to their brand awareness.

The impact Boom and slow down have had on Berendsen and other companies e.g. Translation agencies UK



Through the boom period Berendson’s company demand increases and due to the increase in demand the company strongly considers increase the amount of stores however there are problems with going through with this idea such as not being able to hire a highly effective labouring team. Hiring workers with not relevant experience can lower the efficiency of the firm.Recession recovery

This can also lower demand because the newly established business can ruin the whole business’s relationship with their market through poor quality products and services. The firm will be forced to increase the wage rates to attract highly skills labourers; it can be time consuming and will cost the firm additional funds. Also the GDP increases causing inflation on general prices. This forces the business to also to increase their prices to make sure they are still obtaining profit even after the expenses and wages are deducted. Evidently Berendsen has created strong customer loyalty by offering quality goods and services through any type of economic environment.

This firm are able to perform effectively and keep their business running efficiently because the firm provides essential products that are vital for other business sectors for example the hospitality will always need covers towels and other supplies to keep their business running and also other labouring business require workers to be dressed in the proper attire no matter what kind economic environment they may be in.


Finally in the slowdown period Berensen products begin decrease in demand mainly because their customers look for cheaper options. This forces the business to lower the prices of their goods and services to compete with their competitors. However a large percentage of customers keep their loyalty because purchasing their goods or services in bulk provides discounts to industry sectors that need to be tight with their budget.

The firm quickly finds ways to adapt to these changes, the firm resorts to buying their raw materials for cheaper sources in china, however this does not help the UK’s state in the economy it only increases the odds of the UK going into a deep recession. In addition this causes a ripple effect because firms in the UK decided to purchase raw materials from foreign countries than the UK manufacturing companies begin to lose their customer loyalty and therefore the business will not survive. Through the process of this a large proportion of UK labourers lose their jobs which then lower the general public’s spending power.

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