The Economic Environment P1, P2 M1, D1 Unit 38 Bussiness Studies

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Unit 38: Business & the Economic Environment
Task 1 – P1, P2, M1 & D1
Introduction
In this assignment I am going to explain the effects of changes in the economic environment for Nissan UK. I am then going to analyse the impact that government policies have on Nissan UK. I am then going to evaluate the impact of changes in the economic environment to Nissan UK. The effect of changes in the economic environment has an effect on Nissan UK. This has been shown in the way the economy has been changing recently. The changes in the economic environment are going to show its effects on Nissan UK. This is going to be shown in the number of sales they are making. The economic review for December 2011 shows how the manufacturing output fell in October 2011. It also rise in unemployment in October, November and December. This must have affected the number of sales businesses like Nissan UK are making because they are not going to have as many customers to buy their products. In 2011, the manufacturing output fell and this caused construction and labour weak; this then resulted in an increase in unemployment. This economic change had an effect on the economic environment by showing there wasn’t as many employees in working areas such as construction and labour. This must have had an impact on the number of products being manufactured in Nissan UK. This must have then impacted on the company by not allowing them to make as many sales as their company would expect to make. This shows that the economy review shows that the economy is at a recession. The economy review for December 2011 shows how manufacturing fell and this has left less people working in labour and so they are unemployed, this means that consumers are going to try to spend less. This economic change can have an impact on Nissan UK because it would mean that customers are not willing to spend a lot on things like vehicles and so they would have to drop prices or slow the number of products being manufactured. This can also mean the Nissan UK has had to fire their employees and cut the number of employees they have in their manufacturing because they are not going to want to pay them if there aren’t many products to manufacture. This is going to result in an increase in unemployment. This could have been caused by the manufacturing falling in October 2011 when the rise in unemployment was increasing. This is a big change in the economic environment because it has had an impact on Nissan UK because it shows that they are currently facing a recession. This has been shown in the number of employees are losing their jobs and also how this is having an impact on the number of people that are purchasing their products. This has also decreased because customers are thinking before customers decide to spend. In January 2012, the Economy Review shows the GDP fell by 0.2% in the second half of 2011. This shows that there isn’t much economic growth and that the values of most of the products manufactured in the UK don’t have a high value and also there isn’t a wide range of markets that they have already been introduced to. This can have an impact on Nissan UK because they are going to have to compete with other vehicle manufacturing companies that are outside of the UK. The economy review shows that the economy is still at a recession because the GDP has reduced and this means that there aren’t a lot of products being manufactured. This is also having an impact on Nissan UK because it means that they are not going to manufacture a lot of their vehicles because there isn’t a big demand of their products. This economic change isn’t going to allow Nissan UK to manufacture a lot of products because of the economic change. The economic review for January 2012 shows how inflation fell and December 2011 and this meant that the prices of petrol fell. This is going to have a good impact on Nissan UK because this is going to mean there are more people are using vehicle and can...
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