Economic Recovery in UK Essay

IntroductionOver the past few years, UK rescue has been is a recession occlusive characterized by decline in domineering duty conditions. This period indicated unfavor equal transmission line environment due to aspects of richly taxation, reduced demand and senior high cost of imports. The period was also characterized by low cost of imports which results to unfavor open balance of trade in UK.Economic downturn in UK has great influence in business especi every(prenominal)y the high street brands (Holley, 2012). With that kind of frugal, grow conditions there was increased concerns about the future of high street s. this trend threatened the long term survival and drawing card of high street brands since the frugal conditions undermined the ability to attract a range of potential customers and other businesses. However, signs of economic recovery ar evident in linked Kingdom. The United Kingdom is returning to economic growth, this is according to a range of economic i ndicators which reveal a stable housing market firms raising confidence and employees readiness to hire (Irvin, 2006). According to economic data is growing faster where effects are felt throughout the frugality. The data suggests that the economic recovery is evident in nearly all sectors in the United Kingdom economy.According to economic data in UK, the economy grew by 0.8 percentage compared to last year economic grow de noned by 0.4 percent (Holley, 2012). Considerably, economic recovery in UK has greatly boosted business in the country. For instance, mevery makeups have bragging(a) considerably in the latest business environment that is ensured by the economy recovery. More precisely, companies such as Tesco has registered and increase in the total sales compared to new-fangled past (Tesco annual report, 2013). This in turn has enhanced organizations strategical go on in regard planning in the current business environment.Most pregnant, the incessant economic recover y mood in UK is improving as most businesses are reacting to the increased business confidence through search of new markets. The emplacement has also support enthronement and saving in United Kingdom. Increase in business confidence is accelerating this is a fundamental financial performance manoeuver in UK that indicates reported profit and turnover rise and is expected to improve further (Irvin, 2006). According to economic data, unemployment level has decreased drastically since the start of economic recovery in the country. This situation is characterized by increased demand, growth of most of sector especially retail. In addition, economic firing has ensured favorable balance of wages in UK (Holley, 2012).The economic recovery in UK also indicates enhanced future for high streets brands since it is improving its attractiveness and survival. According to economic data, improved economic conditions in UK will attract much potential investors and retailers to high street br ands business. This because of the enhance business confidence and favorable business climate in United Kingdom.Generally, all sectors of United Kingdom economy are growing considerably showing continuing creation of employment opportunities by the government, educated workforce and enhanced breathing standards through reduction of costs of living (Irvin, 2006).According to economic data, there are indications of enhanced consumer confidence in United Kingdom. This phenomenon is precisely defined by the current economic recovery in the country. According to Holley (2012), the level of consumer confidence is high indicated by the current economic conditions in a country. The improvement in consumer confidence is also ensured due the decline in unemployment in UK which helps to boost confidence. In addition, decline in house prices has also accounted for the improved consumer confidence in UK. Consumer confidence is fundamental as it influences economic policies in a country. Conside rably, increased consumer confidence in UK has caused households to opt to invest instead of savings since they are self-confident of better returns with the prevailing economic conditions in the country.Positive commerce conditions as a result of economic growth in U.KGrowth in business confidence is a major indicator that enhances economic growth. This has lead many investors in the UK to invest in many sectors since they have confidence on the business has there is a confirmed stable growth that motivates them to even invest more in other different sectors. This traffic condition has highly encouraged many businesses to search for new markets in the UK and this comes a result of them many investors within and outside UK having plentiful confidence on what they are investing thusly, these has attributed oft times to enormous growth in their economy. In addition, they expect growth to create a considerable pace now as the recovery continues to build steadily and business in vestment and net trade are also expected to offer increasing support to enhance over the coming years (Trade and investment for growth, 2011).Fairtrade sales in U.K have highly increases going up to 2.89bn globally towards the end of 2008 (Cofnas, 2012). On the same line with the economic growth there is a high increase in demand that helped to avoid the economic crisis and demonstrate the difference that depict with Fairtrades. Consequently, Fairtrade is highly attributed towards enhancing the economic growth in UK.Many of the up-to-the-minute research prevail that through the mechanisms entailed, Fairtrade grants a positive economic opportunity for those individuals with smallholder farming families competent and ready to join producer associations and provide products of the right nutrition for the required market. Consequently, numerous Fairtrade co-operatives are appropriate and are becoming stronger, frequently showing a higher capacity to survive in intricate times and beco ming capable to grant important services to their members. This strengthening is mainly noticeable where producer ownership supplementary along the assessment chain is achieve as demonstrated by the share ownership of producers (Cofnas, 2012).Increase in supply is another positive condition that has resulted from the economic growth in the UK. This came into musing has the government offers and subsides to those producers of the necessary goods and services which generates external benefits that will diminish the cost of production as well has encourage more supply. This has been enacted to encourage the supply of chastity goods in the UK. For instance in the education sector, health and those issues dealing with the housing finance and therefore, these particular merits can easily be funded from the local government taxation or from the nongovernmental organization and this has highly contributed to the economic growth over the last few years.This is basically because they focus on the public goods, for example they concentrate on building roads, bridges, airports and other more areas that are considered to be generating more income thus showing an increase in tax revenue. In addition, the food processing persistence such as Cadbury plc is among those who have heavily benefited from the positive trading conditions, thus it noted to be among the largest leading confectionary with a wide range of products.Back in 2007, the Cadbury plc closed down the keynsham chocolate factory and this lead to about jobs closed. This was enhanced by the wake of wake of the global economic crunch, however, Presently, Hershey Chocolate Company, a US based plc is making tireless efforts to acquire Cadbury so as to enjoy broad world markets due to the positive tradition conditions that have been put in place and enhanced fully.Lastly, tariffs or light trade is another indicator that has enhances economic growth in the UK. According to the economists, when high tariff was not fo rmulated, UK was not economically productive as it was stuck in a huge economic depression in the early years. In contrast, the tariff has currently created appropriate economy in that there is large proportion of the entire population at the same time dependent on commerce and attention sector. The imposition of free tariff has highly promoted growth of several industries. According to the economists, the persistence in economic history, it shows the free trade provides long-run conditions for growth that maybe better than any other way (Aldridge, 2013).How positive trading conditions affects approaches to strategic planningstrategic planning is the process in an organization which leads the organization to coming up with watchword strategies and ideas and finding for room of achieving those strategies as one way of improving an organization or company. It deals with knowing what is to be done, how it is going to be done and for what purpose and the means of doing it. Strategic planning involves understanding a companys mission, vision, strategies, aims, objectives, goals and achievements. The tools required for this include the pestle factors example economic, social, political, legal, environmental and technological and informatics factors. The construction industry which had been affected by the economic breakdown is now improving as various business strategies are being enhanced.United Kingdoms gross domestic product is pushed upwardly through enhancing the positive trading conditions. The trading conditions in the United Kingdom are currently improving amidst many challenges facing the economy of Britain thus if the GDP is to move upwards then the trading conditions must be improved. Last year November, the United Kingdoms exports had a small positive change which made the imports to decrease thus enhancing positive trading conditions which in return reflected a positive change in the GDP (Great Britain & Great Britain, 2013). revision in trading cond itions impacts greatly on the GDP thus it is determined by trading conditions. United Kingdoms sterling quid pro quo is weaken which contributes to an increase in the amounts exported because of recovery in trade worldwide. Thus as the number of exports increases the GDP maintains a positive move thereby stabilizing the economy thereby maintaining the strategic planning in order to maintain that positive move in the economy. Trading conditions determines which strategies to be put in place, when they will be made, who will make those strategies and resources required for the strategies to remain successful.The United Kingdoms trading conditions has suffered challenges over the last few years but lately the trading conditions are taking a positive direction. The manufacturers have learnt their lessons and identified their mistakes which enable them make strategic plans in order to avoid such mistakes in future. Strategic plans have been made in such a way that employment and invest ments remain balanced. By doing this, the economy of United Kingdom is getting boosted and the sterling pound is gaining value (Great Britain, 2007). Investors and employers are applying good strategic planning which is greatly reflected by improvement of trading conditions and economy at large. The manufacturers are now getting huge profits, importing less and exporting more which shows that the trade market is improving greatly.The United Kingdom is trying to balance its trade which is affected by a number of factors (Middleton, Rodger & MacCulloch, 2008). The production cost of the exports should always remain lower than the cost of importation for the economy to remain stable. United Kingdom is strategizing that there are exuberant and available raw materials instead of importing them. It has put restrictions on trade in terms of taxes and made sure that the trading environment is maintained comprehensive of standards of health, safety of its people and conducive environment.F oreign exchange is a key strategy and a contributing factor in the economy of the United Kingdom. The high the foreign exchange the more stable the economy is and vice versa. In addition, it has come up with the strategy of minimizing the cost of the goods sold locally and increasing the cost of its exports. In addition, it has reduced the amount of imports in the country by producing most products locally. The commercial banks and investments banks were greatly affected by the economic decline then followed by the construction and insurance firms and companies. Through the good strategies enhanced the economic started to rise and is now growing to higher standards.The merits, effectiveness and relevance of prescriptive and emergent approaches to strategic planning in this improving economic climateThe effectiveness on the strategic planning is based on the ability on how managers and leaders are able to establish concrete strategies which help them attain their vision and mission i n the most appropriate means possible. Strategic planning is fundamental to finish long term issues which might which might be as a result of prescriptive and emergent approaches. During hard economic times, strategic planning is alert for organization to draw up tangible strategies capable to enable the firm to reach out its desired goals and objectives. Prescriptive strategic planning can be defined as a strategy effected before the whole implementation process starts (Jeffs, 2008).The whole idea revolves around investigation, planning, development and full implementation. This approach is vital particularly to ensure analysis of a firm is stable in relation to the economic conditions. Prescriptive strategy is more focused towards maturation enough ability to predict the changes occurring on the external environment. This approach makes it achievable to systematize difficult activities and conditions as a way of breeding the current environmental changes (Friend & Zehle, 200 4).On the other hand, emergent approach is an appropriate alternative to the prescriptive strategic planning. Emergent approach strategies are developed as time elapses but commonly without any objectives or reasons. This approach is a bit flexible because it allows creation of more creative and antiphonal process in relation to the present economic conditions. This approach is not only important but also appropriate mainly to address the volatility evidenced in the present creative and responsive process. This approach is important because it can be easily altered in the best way possible to suit the current economic conditions (Rao, Rao & Sivaramakrishna, 2008). It is also be applicable in unpredictable environment in order to address some key issues of concern. As evidenced the climate is changing rapidly, and therefore it is important to adapt good strategies to ensure and maintain firms survival.Effectiveness of both prescriptive and emergent approaches is based on the abilit y to establish adopt business objectives and aims. The level of flexibility between different companies matters a lot in relation to adaptation of these strategies. Evidently, firms must develop tangible strategies to tackle the current changes in the environment in order to ensure their survival. Effectiveness of the strategic planning is based on the fact how a firm is prepared enough to handle all maters presented by economic conditions (Jeffs, 2008). The focus towards attaining business objectives is the key driver towards establishing effective strategic plan.The numerous changes happening in both developing and emerging countries have led to establishment and diffusion of efficient strategic planning. The effectives of both prescriptive and emergent approaches are determined by how an organization is able to polish its operations and implementation of viable strategies. In other works it can be stated as the degree at which firms are able to successfully achieve its desired o bjectives in the most appropriate procedural. The effectiveness of strategic planning is closely linked with its achievements as a result of established objectives. Basically, strategic planning is more concerned with objectives and results despite presence of economic conditions (Rao, Rao & Sivaramakrishna, 2008).Strategic planning is relevant to address all issues emerging as a result of economic trading conditions. According to Friend and Zehle (2004), both prescriptive strategies and emergent strategies are so relevant to address the current situation as witnessed in the in the current economic climate of instability. There is need for companies and organizations to effectively implement and adapt these strategies mainly to ensure their survival. The aim of these strategies is to ensure that an organization has proper mechanism put in place to handle changes which might be as a result of environmental changes (Jeffs, 2008).Strategic planning has gained more popularity with many companies adapting strategies with more efforts focused towards achieving the aims and objectives goals. Evidently, strategic planning helps organizations to grow progress and successfully adapt effective strategies to address the constantly changing environment.ConclusionFrom the preceding(prenominal) paper it is evident that, over the past few years, UK economy has witnessed a recession period characterized by decline in positive business conditions. This period indicated unfavorable business environment due to aspects of high taxation, reduced demand and high cost of imports. The implication is widespread low imports hence attracting all trading businesses. The economic recovery in UK also indicates enhanced future for high streets brands since it is improving its attractiveness and survival. According to many indicators, UK economy appears to be emerging from the turbulence of the past five years with its devastating impact on many businesses including well known high street b rands. Strategic planning is vital to address long term issues which might which might be as a result of prescriptive and emergent approaches.ReferenceAldridge, I. (2013). High-frequency trading A practical pass on to algorithmic strategies and trading systems.Cofnas, A. (2012). Trading binary options Strategies and tactics. Hoboken, NJ Bloomberg Press/Wiley.Friend, G., & Zehle, S. (2004). Guide to business planning. London Economist in association with Profile Books.Great Britain. (2007). victor and failure in the UK car maunfacturing industry. 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