An independent report has predicted that economic growth in the UK will slow and even become negative by the third quarter of 2020, resulting in high unemployment levels and lower investment within the UK economy. Higher oil prices are also predicted which will have a knock-on effect of a general and persistent increase in prices (inflation). The report has urged the UK government to engage more with non-European markets which it says will result in more trade, more foreign investment and more knowledge transfer and sustained economic growth.

a. The management of Ace Body Gyms has asked you to evaluate the effects of the predicted changes in the UK economy outlined above on the performance of the company. Specifically, you should write an essay to address the effects of the independent report on the performance of Ace Body gyms. Performance should include, but is not limited to, the effects on price, cost, demand, investment opportunities, profits etc.

b. Your report should also include recommendations as to how Ace Body Gyms could maintain a solid performance despite the predicted economic downturn.