The impact recession and recovery have had on the health of Berendsen and other companies

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Most firms have difficulty adjusting to the different changes of the economics environment however Berendson has used different tactics to battle odds of overcoming them.

Firstly through the recession Berendsen was aware that the demand for their goods and services in the UK would decrease so business decrease the costs of their goods and services. The firm could do this because they already purchase their supplies from developing countries such as the Far East and china. By purchasing the raw materials they need in bulk then they can receive more of a discount. The business reacted to the lack of business by decreasing the amount of stock they have for products and services that became less popular.

However textile products such as bedspreads and covers are consistently on demand so the company continue to purchase the raw materials needed for these products. The firm also allocates local managers and SEO consultants to create intelligent business plan to support the firm through the rough economic period such as the quantity of raw materials needed, financial statements indicating how much the firm is saving through buying in bulk and also how much of staff is essentially needed to continue in the running of the business.

The business also uses their financial experts e.g. accountants, they discuss the best way to deals with the increase on value added tax and also the income tax, these factors can hugely affect how much the company has to spend on goods and services. The business’s financial experts must also consider the exchange rates to making sure that they constantly keep track of the value of the pound sterling and euros.

In addition the firm has also maintained a good relationship with the banks they have been borrowing capital from; this means that the company has a low credit rate and the banks will also be committed to supplying more funds to the business.


In the recovery period the firm begins to increase the quantity of their supplies. Due to the fact the company assumes that demands will increase for their goods and services because unemployment rates have fallen. This means that more customers will have more income to spend on goods and services that are not crucial. Also the firm begins to employ more staff to prepare for the increase in demands. The recovery period allows the firm to continue to produce more goods and services, this boost in general income allows the firm to experiment by offering new products and services to increase the firm’s income. In addition the firm can also expand their business through more parts of Europe to their brand awareness.

Economic growth has been very disappointing when compared to other past recoveries. We can estimate how much first world economies have underperformed relative to the general trend since the start of the financial crisis and suggest several factors behind the unusually slow recovery.

The speed of this recovery from the last global financial crisis has been extremely slow. This unusually slow recovery is a true symptom of the permanent decline in GDP following every financial crisis, because the economy never fully rebounds from the initial crisis or recession. We can expect long term output losses from the crisis ranging from almost zero in Germany to almost twenty per cent in Italy and Spain.

The above piece was written by Jonas Shown. Jonas is a digital ninja for a digital agency currently working on a project for the travel apartment rental agency, San Sebastian hotels and apartments, an agency that rents holiday apartment rentals in the north of Spain. Jonas loves football, knitting and politics.