This document discusses the impacts of recession on businesses and individuals. It describes how a recession is characterized by slowing economic growth, decreased production and consumer spending, rising unemployment, and falling incomes. During recessions, overproduction can lead to high supply and low demand. Recessions can be triggered by external events and a loss of confidence. The document examines how Foxconn and Starbucks were affected differently by the 2007-2012 global recession, with Foxconn facing major problems and Starbucks expanding. It also explores how some unemployed individuals became accidental entrepreneurs by starting their own businesses out of necessity during the recession.

1. presents

4. Starting Point = Willingness to buy

5. Starting Point = Unwillingness to buy

7. •Inflation
•Recession

9. • 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

10. • People buying less products
• Decrease in factory
production.
• Growing unemployment
• Slump in personal income
• An unhealthy stock market.

11. Recession
Occurence
Over
Production
Low
Confidence
Level

12. Produced
more
then
needed
Supply
>
Demand

13. Low
confidence
level
Word of
mouth
Assignable
Cause

14. • Low Confidence Level of Millions of
consumers and producers after they hear
many job cuts Demand coming down
Companies’ 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…

15. 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

16. • Fewer people are
starting businesses.
• New and small
businesses are dying at
a rapid pace.
• Small business
employment has shrunk
dramatically.

17. 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.

18. Problems Foxconn faced
• Suicides
• Bankruptcy
• High unemployment
• Poor working conditions
• Low remuneration for employees

21. Starbucks
• Coffee house chain.
• Based in Washington.
• 19555 stores in 58 countries.
• One of the three major players in hospitality
industry.

22. 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.

24. • 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. .

25. • 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.

26. • 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 task
of searching through hundreds of job search
websites, sending out cover letters and
resumes only to receive that e-mail saying
“Thank you for your interest but we have
found another candidate…”

27. • Remember the famous saying