Economic Downturn

Topics: Unemployment, Inflation, Economics Pages: 2 (541 words) Published: September 14, 2013
An economic downturn occurs or is said to have occurred when an economy or nation/s enters a recession. During this period certain changes are experienced within the economy. This changes include a lowered productivity of that economy or nation, increased unemployment rates, increased inflation rates, a crashed stock market, loss of investment value as the stock prices or value drops, value of real estates could lower or drop and financing for projects and businesses could become very difficult to procure. During an economic downturn, manufacturing and other businesses slows down a great deal, this automatically causes a decline in profits for businesses, income levels and employments. This affects businesses because the consumers ability to spend is greatly reduced. In Nigeria, the above mentioned situations are prevailing indicating that the economy is /maybe experiencing a downturn. The impact of this economic downturn on my organization is as follows, * A decrease in the request for environmental impact assessment: when new manufacturing and production companies are being set up, whether it is on a small scale or large scale, the government request that an environmental impact assessment be carried out. However since there is a decline in the set up of new manufacturing companies, we as an impact assessment firm are getting less number of request for impact assessments. * A change in auto sales: in the last year, since income levels have dropped and financial resources available to families have decreased their spending pattern has also changed. We have experienced a reduction in the sales of high value automobiles, with sales being strongest in the less expensive vehicles. Overall revenue has dropped for my organization and we have had to implement the following changes to be able to stay afloat. * Focus our sales advert and marketing on the low cost vehicles * Introduce other analytical services apart from impact assessments * Reduce wages...
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