M2 - Procurement, Transportation of Goods, Promotion and Recruitment

Procurement, Transportation of Goods, Promotion and Recruitment

Business Activity	Growth	Recession
Procurement (Buying)	When a business e.g. Tesco is buying in a time of growth they face the challenge of finding more or new buyers to supply they’re shops. In a very large growth they may struggle to find suppliers to stock the shelves, because	Tesco would face the challenge of not buying too much, because if they did, then profit would go down since not many people are buying the stock.  The price of the stock Tesco would be buying would be expensive to they cannot afford to waste any of it too.
Transport of Goods	When a business like Tesco is transporting goods in a growth period they may need more delivery every day, this means they will have to buy more lorry’s and then face the task of recruiting more staff just to transport the goods.	During a recession, fuel will be more expensive so Tesco would have to make deliveries every other day. Tesco would also have to ensure that customers should buy their products; otherwise they will go elsewhere.
Promotion	Tesco might face the challenge of spending too much money on promotion, which could lead to over pricing products and a higher demand for stock. This comes well with profit, however Tesco would then face the challenge of having to recruit more workers.	Tesco will have to promote their goods more during a recession, because they will have to protect their company over others and still give out ‘deals’ and half price offers.
Recruitment	Tesco would have to find as many people to work for them as possible during growth, since demand is incredibly high. If this fails, then Tesco could face problems relating with workers having to spend more overtime, and also having to pay the workers more.	Tesco will have to recruit less during a recession, because there are not enough people buying items, therefore Tesco does not need as many workers.  Public service will also go down, so a problem Tesco would face has to keep the workers satisfied.