Republic of uzbekistan andijan machine-building institute fundamentals of business management

 
Learning the 4 stages of business activity 
Business activity cycle. 
Economic and business activities tend to move in cycles. As the experience of all nations shows, there 
are good and bad periods in the economy. Fortunately, with the passage of time, the bad climate 
disappears and the good climate returns. 
If we pay attention to economic changes in the past, we see that good days are followed by bad 
days and then good days. The rate of change of this economy from one climate to another is called 
business activity cycle. 
The business cycle is the repetition of increases and decreases in GDP. Business cycles have 4 
main phrases: growth, decline, depression and recovery. 
Development 
The activity at the highest points of the business activity cycle is called development. Development is 
a period of time in which whoever wants to work works, and business produces products and services 
at record levels, wages are good, and GDP growth accelerates. 
The demand for products and services has increased. During this period of time, business activity 
is usually at its peak. Development does not last forever. The economy slowly begins to cool and 
activity slows down. 
Decline 
This phase of slowing down of the economy and business activity is called the recession phase. A 
recession is a time period during which demand decreases, unemployment increases, and GDP growth 
slows down for 2 or more quarters of a calendar year. This step is not very important or 

---

It doesn't last long, but it's a sign of trouble for workers in related businesses. For example, if people 
buy fewer cars, workers who produce batteries, cylinders and other parts will go out of work. This 
situation is called the ripple effect in business activity. 
Over time, production will weaken in all sectors of the economy, then the total production will 
decrease by a quarter. Some declines last longer because fewer aspects of production are used and 
overall demand declines. Directions of ethical analysis 
Many business decisions are made in different ways. In some countries, the companies where 
people work employ family members more than others. Elsewhere, payments and gifts are expected to 
be received before starting a business. 
These and other situations raise ethical issues. Ethics are principles of right and wrong that guide 
personal and business decisions. When discussing ethics in a business situation, these 3 clarifying 
questions are asked: 
1. Is the activity legal? Laws vary by country and state. Most companies make international 
decisions based on the laws of their countries. When a problem arises, managers consider other reasons, 
professional standards and the impact of the activity on society. 
2. Is the activity professional and consistent with company standards? 
Professional or company standards that often go beyond the limits are reviewed by the law. This ensures 
that decisions are made taking into account the interests of both parties, the company and society. 
Who is motivated by the activity and how? 
Decisions can be legal and professional or in the form of company standards. Decision makers should 
not ignore changes in the growth of employees, customers, competitors, and the external environment.