In an economic depression unemployment rates and decrease in the flow of money into the economy. Thorpe Park will find it exceedingly difficult to earn profits. As a result they reduce their staffs that lead to unemployment. But they only hire seasonal staff who only work 9 months of the year so employees will become unemployed at the end of the 9 months every year. Unemployment is a major influence on Thorpe Park as it will affect its products for example if they are short on staff one person cannot check all the seatbelts are locked on the rides than activate it as it will take double the time to get the ride going and make the customers waiting time longer which will make them fail their objects of giving customers a ‘’thrilling experience’’, resulting in a bad performance and customers never coming back. Due to people who have lost their jobs, money is now being spent much more carefully. This means that the average person is spending their money on only the necessities such as food, fuel and bills. more extravagant purchases such as clothes cars and days out to the local theme park are not high on most people priority’s therefore I would expect to see the amount of visitors to Thorpe park decreasing for most of the time throughout the year. however, due to the unemployment rates many people instead of taking family trips abroad, now prefer to stay at home to save money and spend their holidays in Britain, meaning British resorts, parks, museums and even Thorpe Park see a much higher visitor level in the past 2 years than they have for a very long time especially in the summer months and other holidays. So I would expect to see a decrease in visitors overall in comparison to previous years but during the summer months visitor numbers have greatly increased. Therefore profits will have decreased and staff at Thorpe Park will be made redundant. I think this will be a long influence as we are currently in a recession which means unemployment rates are high meaning in will take time to go back out if it. It will also affect Thorpe Park’s aim of ‘’Increase Intention to Visit on national level from 36% to 38%’’ as some people won’t be able to afford it. So an advantage of the impact it has on Thorpe Park is people can’t afford to go abroad so they will just go to a theme park instead because it is cheaper. Cost
Thorpe Park will have to pay out a little out of their money as because of the unemployment rates of their customers which means that they may not have the extra cash to spend. Thorpe Park already breakeven at £16 per tickets and they already charge £39.60 per ticket, which means even if they make the ticket each about £20 for the holidays as a special offer then they will still be making £4 profit on each ticket sold.
I think this will be a reliable strategy for Thorpe Park as it will help them gain more customers even if
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For Thorpe Park this would mean that lots of aspects of the business will be affected as explained below. Interest Rates Directly Affect Borrowing
The most straightforward impact of interest rates on businesses is how rates influence business borrowing. Thorpe Park may need to take out short term loans to make up for shortfalls in payroll or other expenses, so higher interest rates make such shortfalls more costly, since Thorpe Park will have to pay more interest back to lenders. Thorpe Park may also frequently take out longer term debt for improvements and infrastructure. The higher the prevailing interest rates, the most costly taking on debt and therefore the less likely businesses will be able to commit the funds to such projects e.g. Thorpe Park Making new rides and attractions etc. How Interest Rates Impact Business Strategy
Another important impact interest rates have on Thorpe...
Please join StudyMode to read the full document