Similar Business's in Different Worlds

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Similar Business 's in Different Worlds Economic Environment in Wales A good economy needs to have stability and growth, there needs to be a decrease in inflation and low interest rates to ensure there is access to the appropriate supplier of labour. The welsh government usually uses taxes and spending as a way to control the economy. As the banks work for the government they are able to alter the quantity of money that 's available, in 2009 they provided them with more money to be able to lend more to business 's due to the economic environment at that time. In the year 2008 the UK saw the start to a growing recession, in recent years of 2010, 2011 and even into 2012 Wales recession is still in a bad state, but being controlled a bit…show more content…
Tesco have had to launch a £500 million price cut campaign which actually led to a 1% increase in sales volume that year. Supply and Demand change frequently and Tesco 's is currently in a state of disequilibrium. There is an issue that relates to demand due to the desirability of a product, and is unlikely that income will increase enough to cause a change in the demand, therefore Tesco have to create product that are desirable. In the Current economic environment retailers are struggling as shoppers ' income are squeezed by rising prices. One of Tesco 's main challenges comes from its competition with other markets, As such they are forced to lower prices and create unique offers at the expense of profit. Tesco 's in China China has become a strategically important growth market for Tesco, their stores are located on the eastern seaboard in areas which have a total population of over 600 millon. China have set up large Hypermarkets where most of their physical presence Is obtained, and are currently opening a few express stores and online sites. China is also a major sourcing location for the group, the international sourcing head quarters are based in Hong Kong where they source more than 60% of all clothing and 40% of other non food items. Tesco currently buy £2.25bn worth of goods and services from china. Just like in Wales there are a number of Challenges and Opportunities for Tesco
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