presents

Starting Point = Willingness to buy

Starting Point = Unwillingness to buy

•Inflation

•Recession

• A recession is a prolonged period of time a where a nation’s economy is slowing down. This slow down is actually characterized by a number of different Trends

• People buying less products

• Decrease in factory production.

• Growing unemployment

• Slump in personal income

• An unhealthy stock market.

Recession

Occurence

Over

Production

Low

Confidence

Level

Produced

more

then

needed

Supply

>

Demand

Low confidence

level

Word of mouth

Assignable Cause

• Low Confidence Level of Millions of consumers and producers after they hear many job cuts Demand coming downCompanies’ bankruptcy etc.

• Consumers are fearing that they may lose their jobs.

• Producers do not stock materials, they reduce their productions worried about the profitability, etc…

Assignable Cause

• Bad Incidences Happening;

• Example: September 11 Terrorist Attack in US;

International Airport block in Thailand;

• 0Mumbai Attacked in India;

• etc…

Series of such incidences

leading into a kind of War

• Fewer people are starting businesses.

• New and small businesses are dying at a rapid pace.

• Small business employment has shrunk dramatically.

Foxconn is the worlds largest maker of electronic components.

• It has its headquarters in Greater China.

• In the global recession 2007-2012. Foxconn was affected the most in the IT Sector.

Problems Foxconn faced

• Suicides

• Bankruptcy

• High unemployment

• Poor working conditions

• Low remuneration for employees

Starbucks

• Coffee house chain.

• Based in Washington.

• 19555 stores in 58 countries.

• One of the three major players in hospitality industry.

Starbucks surviving Recession

• Starbucks was a company which was less affected with Recession.

• It inturn opened up in new countries including India.

• With the help of Tata it has now ventured in the Indian market.

• With unemployment hovering at 10 percent and the economy still shedding jobs, many would-be employees have concluded that the best way forward is to go into business for themselves, whether they want to or not.

• The recession has put thousands of people out of work, creating a new class of accidental entrepreneurs. Whether by ingenuity or just plain luck, many of newly unemployed have formed their own small businesses as a result of the shrinking

job pool. .

• The decline suggests that business failures have outpaced new business startups during the recession, although the tide seems to be turning as the economy emerges from the downturn.

• Surprisingly, the odds of success for a business appear to have little relation to whether its founder chose to pursue that path or was forced into it a job loss, said a multiyear study of thousands of independent businesses.

• According to the Merriam-Webster Dictionary, the definition of entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise.” They are in fact undertaking a risk when they open a business and what better time to take a risk then when you have the freedom to do so- when you’re laid off? The last thing many people want to do when they get laid off is to go through the long, difficult and often frustrating taskof searching through hundreds of job searchwebsites, sending out cover letters and resumes only to receive that e-mail saying

“Thank you for your interest but we havefound another candidate…”

• Remember the famous saying