Question

In this discussion forum explain the sensitivity of your company/industry to business cycles; whether it lags or leads the cycle; and if moves with or opposite to the cycle.

Answer 1

I work with a car manufacturing and selling company, Hyundai.

Our main operations are manufacturing and selling cars and automobiles in the market.

My business is very much affected by business cycles, as these business cycles directly impact consumer incomes and thus their purchasing behavior. During periods of expansion or peaks, consumer incomes are more, and they have more confidence in the economy and thus they start making purchases and our sales start to increase. However, during times of depression or falling economy, consumers move away from the market and reduce their expenses, thereby reducing sales in the market.

Our business runs behind the nosiness cycles, as the business cycles first occur and the they impact our sales and performance.