Similar Businesses in Different Worlds
The main purpose of this assignment is to: describe the influence of two contrasting economic environments on business activities within Your chosen Business and describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders. Scenario
The reporter at the business magazine you work for is really busy and he has asked youto write a series ofarticles completing the following five tasks. You should be able to produce the articles as required. Task1 –Every business is affected by the economic climate. You should include descriptions of at least two economic topics that affect your business organisation’s activities. This may include effects from the ‘Credit-crunch’ and the ensuing recession. It could be linked to the new economic policies after the General Election May 6th 2010 including the coalitions proposedhike in V.A.T.or it may look at economic implications from the Volcanic Ash disruption 15th April 2010 or BP Oil spillage in the Gulf of Mexico.
A)To start with give a brief explanation of the following Key terms which could affect your business:
Economic: importance of stability; impact on business of changes in the economic environment(growth, recession, ripple effect); levels of inflation; availability and cost of credit; labour; changesin government policy (legal, fiscal, monetary) Demand: influenced by affordability; competition; availability of substitutes; level of Gross DomesticProduct (GDP); needs and aspirations of consumers Supply: Influenced by availability of raw materials and labour; logistics; ability to produce profitably;competition for raw materials; government support Changes in supply and demand: supply and demand curves; elasticity of demand; price sensitivity;influence of branding on price sensitivity Global interaction: levels and types of interdependence (supply...
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