P5: Describe the influence of two contrasting economic environments on business activities within a selected organisation.
M2: Compare the challenges to selected business activities within a selected organisation, in two different economic environments.
This assignment is asking me to describe the influence of two contrasting economic environments on business activities within a selected organisation.
Nike is a global brand specialising in the design and manufacture of athletic apparel, footwear, accessories and equipment; it is headquartered in the United States, Europe, and the Asia Pacific Region. Its products are available ...view middle of the document...
Changes in the government policy make up the political factors. The change can be economic, legal or social. It could also be a mix of these factors.
Increase or decrease in tax could be an example of a political element. Your government might increase taxes for some companies and lower it for others. The decision will have a direct effect on your businesses.
The Business cycle
The business cycle is a cycle or series of cycles of economic expansion and contraction, where the economic activity in the UK is measured via Gross Domestic Product. GDP is the value of all goods and services produced in the UK each year. Moreover within the business cycle there are 4 stages. These are: Boom, recession, slump and growth. Each of these 4 stages has its impact on the cycle significantly.
Inflation is a general increase in prices and fall in the purchasing value of money.
CPI - A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care
RPI - In the United Kingdom, the retail prices index or retail price index (RPI) is a measure of inflation published monthly by the Office for National Statistics. It measures the change in the cost of a representative sample of retail goods and services.
Economic policy - Economic policy refers to the actions that governments take in the economic field. It covers the systems for setting levels of taxation, government budgets, the money supply and interest rates as well as the labour market, national ownership, and many other areas of...