business cycle

Examples of business cycle in the following topics:

• The Business Cycle: Definition and Phases

  • The term business cycle refers to economy-wide fluctuations in production, trade, and general economic activity.
  • The term "business cycle" (or economic cycle or boom-bust cycle) refers to economy-wide fluctuations in production, trade, and general economic activity.
  • From a conceptual perspective, the business cycle is the upward and downward movements of levels of GDP (gross domestic product) and refers to the period of expansions and contractions in the level of economic activities (business fluctuations) around a long-term growth trend .
  • Business cycles are identified as having four distinct phases: expansion, peak, contraction, and trough.
  • Business cycle fluctuations occur around a long-term growth trend and are usually measured by considering the growth rate of real gross domestic product.

• The Business Cycle

  • Just before 2008, the business cycle peaked, and the economy began to contract.
  • The term business cycle (or economic cycle) refers to economy-wide fluctuations in production or economic activity over several months or years.
  • Business cycles are composed of two phases and two turning points.
  • However, some economists use the phrase "business cycle" as a convenient shorthand.
  • Summarize the phases and turning points inherent in the business cycle

• Interest Rates and the Business Cycle

  • Empirical evidence indicates that market interest rates rise during a business cycle and fall during recessions.
  • During a business cycle, the amount of goods and services produced in the economy increases because businesses become optimistic about future profits and invest in machines and equipment by issuing more bonds.

• Life Cycle of Small Business

• Impact of the Operating Cycle on the Income Statement

  • Companies choose the length of their accounting cycle by how long it takes to carry out the required accounting—not when the individual business transactions take place.
  • Often, companies have a separate operating cycle for their business.
  • It is very rare that the accounting cycle and operating cycle coincide with each other.
  • That is why each business transaction during the operating cycle is analyzed to determine which accounting cycle to record it in.
  • When companies fail to follow this procedure, the current accounting cycle records do not accurately reflect the business transactions in each of the operating cycles.

• Bureaucratic Control

  • The quality control cycle improves processes through a continuous cycle of planning, doing, checking, and acting.
  • It is also known as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle, or plan–do–study–act (PDSA).
  • Another version of this PDCA cycle is OPDCA.
  • Plan: In this step of the quality control cycle, a business establishes the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals).
  • Do: In this step, a business implements the plan, executes the process, and makes the product.

• Considering the Organizational Life Cycle

  • The life cycle of an organization is important to consider when determining its overall design and structure.
  • The Enterprise Life Cycle is the dynamic, iterative process of changing an enterprise over time by incorporating new business processes, technologies, and capabilities, as well as maintaining, using, and disposing of existing elements of the enterprise.
  • Daft theorized four stages of the organizational life cycle, each with critical transitions:
  • The Enterprise Life Cycle comes strongly into play in the elaboration stage.
  • Describe the way in which life cycles influence an organization's overall design and structure

• The Product Life Cycle

  • Product development and product life cycles go hand-in-hand.
  • It is important that businesses continually develop new products to replace those that are declining.
  • The product life cycle (PLC) describes the life of a product in the market with respect to business/commercial costs and sales measures.
  • Products have a limited life and, thus, every product has a life cycle.
  • The product life cycle begins with the introduction stage (see ).

• Calculating the Cash Flow Cycle

  • The cash flow cycle is also called cash conversion cycle (CCC).
  • There are five important intervals, referred to as conversion cycles (or conversion periods):
  • The Cash Conversion Cycle emerges as interval C→D (i.e., disbursing cash→collecting cash).
  • The operating cycle emerges as interval A→D (i.e., owing cash→collecting cash)
  • Its aim is also to study cash flow of business.

• Product Life-Cycle Curve

  • It is important for marketing managers to understand the limitations of the product life cycle model.
  • A given product may hold a unique product life cycle shape such that use of typical product life cycle models are useful only as a rough guide for marketing management.
  • Facebook is in the mature phase of the product life cycle.
  • No new or obsoleting technology is expected to appear soon which would put Facebook out of business.
  • The iPod touch is currently in the mature phase of the product life cycle.