As we have seen in Step 1, over-capacity in the market may lead to the price falling. This can make life difficult for the firms in the market. A key part of avoiding problems is forecasting and planning. If a firm can forecast when these market changes are going to take place, they may be able to plan ahead and minimise the impact of them. Using your course book or library, investigate what different types of planning there are, and write a short paragraph outlining what they are and why they are important.
Economies tend to grow in cycles.
The peaks and troughs of the trade cycle on average have been on average 5 years apart. Justify your answer. As outlined in the marketing explanation section balloons will tend to be an income dependent purchase. The faster incomes are growing the more likely people are to buy one. This makes recession a difficult time for balloon manufacturers.