Recession Guru

Recession has badly affected everyone. Businesses are doing badly due to consumers being less willing to spend thus demands fall. Consumers need to reduce cost to survive the economic crisis while producers need to be more productive to ensure that the company does not shut down and reducing unemployment.

So what could consumers do to reduce cost? Whatever consumers consume such as transportation and food, there are always substitutes. Consumers have to spend their money very wisely and not overspend. They have to find goods that are more affordable was well as able to meet thier demands. For transportation, person A could take a bus or a taxi. The bus ride to work and back home will cost him $2.40 while if he took a cab it might cost him $18. If you work it out mathematically, if he goes to work 6 times a week he would spend $14.40 a week on bus fare while $108 a week on taxi fare. Thus if person A takes the bus rather then taxi he will save $93.60, reducing his cost.

As for food and drinks, consumers could find cheaper substitutes.Person B loves coffee and goes to Starkbucks for his daily coffee which cost $4 per cup. However with the recession he seems to be unable to afford a Starbucks coffee. But he needs his daily coffee. To reduce cost he could go to a hawker centre to get his coffee which would only cost him a $1. This would only cost him $7 a week in comparison to Starbucks coffee which would cost ihm $28 a week, cutting down on his cost.

Producers need to be more productive to earn more profits, especailly during the recession they have to be more prodcutive then usually to ensure that their business does not shut down.

There are different plans that producers develop in an attempt to improve productivity and increase their profits. Wage incentive plans and changes in management structure are two ways that companies focus on the labor force. With better management of structure and wages for workers it would be more efficient, thus better productivity. Producers could invest in research and development allows producers to develop new products and processes that are more productive. Quality improvement programs can reduce waste and provide more competitive products at a lower cost.Also, technology can also help to speed up production of goods, making supply of goods elastic, ensure that supply of goods are less price elastic.

Coca Cola is one of the biggest companies in the world. There are a few things that make Coca Cola very successful and productive. Coca Cola makes use of technology. They do this by investing in new bottling technology, marketing management, and refining management of their entire system. Not only do they gain more efficient ways of running their business, but they also learn from their investments and see how to better them in the future.


sources:
http://www.answers.com/topic/productivity
interviewing parents
http://home.att.net/~paulkorn/coke.htm