How Does Debenhams Affect The Current Economic System

By lowering their prices for electrical household products, this might raise questions among the Marks and Spencer customer’s as they would doubt the quality of the products thus residing from purchasing the equipment’s. Another problem would if that if they reduce the prices of the equipment’s they won’t be able to go back to the original prices. Also, if the sales stay the same while the prices go down the revenue will also decrease as a result and therefore less profits will be made.

The exchange rate is the price of one currency in terms of another. A fall in the value of the pound is known as a depreciation and affects both the level of aggregate demand and the costs of production for firms in the UK economy. //One way in which a fall in the exchange rate can be beneficial for the UK economy is that it “should

Before we look at these forces, we should sketch out how exchange rate movements affect a nation 's trading relationships with other nations. A higher currency makes a country 's exports more expensive and imports cheaper in foreign markets; a lower currency makes a country 's exports cheaper and its imports more expensive in foreign markets. A higher exchange rate can be expected to lower the country 's balance of trade, while a lower exchange rate would increase it.

In this article I 'll give my view on this. Disclaimer: I own a couple of Small Business 's which (potentially) benefit from this decision. I have looked after the HR department of a larger ASX listed company in the past and have some reasonable HR experience. I also really think retail shops should be closed on a Sunday so people can do other (more sociable, community and family friendly) activities rather than trudging around shops

Exchange rates fluctuate in response to a multitude of factors. Upswings and downswings in the exchange rate can have both positive and negative consequential effects. Depreciation drops the value of the dollar and permits owners of foreign currencies to purchase a greater amount of Australian goods. Hence, depreciation makes Australian exports cheaper and accordingly

Price floors is a strategy that can be quite useful, with many positives outcomes from it, but also there are a few negative outcomes. The government use price floor to prevent people from buying certain products as frequently and also to decrease certain products demand. Goods such as cigarettes have a price floor, which is why the price for cigarettes will always be above equilibrium, and will only increase in price over the years. This could be considered an advantage and also a disadvantage for some. Price floor has positive outcomes especially for the government and also lowers the death/illness rate caused by smoking. A negative outcomes may affect the suppliers, due to the fact they can no longer set the price for the product, which will cause the quantity supplied to be greater than the quantity demanded, this is known as a surplus (shown in figure 4). Due to the price being constantly above equilibrium, the money that is made may be the same as previously when the price floor did not exist, or possibly more. Although price floor

The exchange rate will could work as a benefit to the business this is because if other countries currency is weaker than the US this will mean they will look to sell there for more profit because they will have to pay foreign currency for the product. So if the Euro exchange rate falls this could be seen good because it will mean that countries in the Euro will have to pay more for The business cars, however this can cause more problems for The business because it will mean that some consumers may not be able to afford the companies products. However another advantage is that this would mean that they could have cheaper parts from the suppliers because the exchange rate has fallen.

Hint : When there is a change in the exchange rate, this would automatically alter the prices of all foreign goods to domestic goods, as the domestic prices are intertwined with the foreign prices. Thus, these changes would affect the trade flows between nations.

Overall Exchange Rates change every day and depending on how it changes can affect inbound and domestic tourism.

* The recent devaluation of Pound Sterling (£1) against the US Dollar ($1.5) means, Pret spend more money trading globally, compared to when the Pound Sterling (£1) much stronger than the US Dollar ($2). This will affect their annual profits or is likely to lead to unethical trading as they look for the cheapest sources to get their raw materials.

DEBENHAMS is a famous department store in the UK, primarily providing clothing, accessories, beauty and furniture. DEBENHAMS performs as a leader in UK market in clothing and premium health and beauty. Moreover, it also owns an online shop and operates stores across 27 countries overseas.

During the first half, Debenhams plc’s performance is not positive and the results of the first six months brought some underlying problems to the forefront; Decisive actions were taken to improve the performance in the second

Sainsbury has developed different supply chain channels to manage the complexity faced due to different store formats such as country town, Sainsbury local. Sainsbury believes in continues improvement and aims to achieve it in many different ways. Sainsbury recognise the importance of its people who plays a major role in delivering excellent business. The logistic staffs of Sainsbury tend to work in flexible and well maintained environment. One of the collaboration of Sainsbury is to focus on the demands of the consumers and maintain a healthy relationship with the suppliers and other partners. Above all Sainsbury is committed in reducing the impact of its operation towards the environment (J. Sainsbury Plc-b, 2002).

* External Context of Sainsbury’s belongs to the biggest supermarket leaders in UK. In other words, Sainsbury’s is part of big four ‘Asda, Tesco, Sainsbury’s, Morrison’s. The biggest rival today in UK market is Morrison’s, they booth fighting for a market but Sainsbury’s ram in a higher place. In Appendix 3, we can find concept of retail and types of functioning.

Economic and the currency: first of all, every business is trying to avoid risk, therefor, the economic status of a foreign country is what the company looking for, they want the low unemployment rate, inflation rate and stable economic environment. Furthermore, the currency difference will change the product price strategy.