Case

General draft for our case study

* What is Recession: Recession is the worst situation which affects everyone from top to a lower person (boss to employee).companies that increases their workforce in the time of slowdown seem to reaping the benefit of more profits.(from article 8).To prove this point I just want to quote an example of Indian companies. Tata Motors, Asian Paints

and Hero Honda Motors, which increased their workforce, posted

profit growth of over 100% each while Hero Honda Motors' profits grew by

95%. On the contrary, at Gail (India), Tata Steel and Bank Of India, which

saw a decline in workforce levels, net profit went down 39% to 59% respectively.( article 8).

* I like this example : If your neighbor gets laid off, it's a recession. If you get laid off, it's a depression. ( http://www.investopedia.com/articles/economics/08/recession-affecting-business.asp#ixzz3X030E9fF)

* Causes of recession: According to me I think this is the most important aspect of our case study.like what are the main causes of recession.

1) According to me the fist cause of recession is imbalances in the international trade markets.

2) May be changes in government policies.

3) Stock market crash.

4) Assest bubble (when the prices of companies, stocks or houses become inflated beyond their sustainable value.)

* Problems caused by the recession : I am going to mention all the problems which are caused by Recession.As I discussed above it causes problems to business and to employess.

* Business:

1) Decline in sales revenue and profits.

2) To cut costs and increase in sales managers may stop to buy new equipments

3) Need to hire more new employees for business.

4) Expenditure for marketing for example advertisement may also reduce.

5) Fall in stocks and fall in rate of dividend (which may upset shareholders.)

6) If company is not able to pay their debts then this is the issue of bankruptcy.

7)...