p5 business btec

P5 - Describe the influence of two contrasting economic environments on business activities within a selected organisation

We are going to investigate the way in which the economic climate has affected Sub Xpress (based in the UK) and BMW (based in Germany).

Introduce the two businesses.

Inflation

Define inflation
You need to describe the current inflation rate in the UK.
Include a graph.
Explain what this means to Sub Xpress
Think costs to the business
Think prices to the customers
Think affordability to customers

In a second paragraph underneath
You need to describe the current inflation rate in Germany.
Include a graph.
Explain what this means to BMW
Think costs to the business
Think prices to the customers
Think affordability to customers
Think economic growth in the country

Currency

Identify the currency we have within the UK compared to the currency in Germany.
What benefits/ drawbacks does having the (£) mean for Sub Xpress?
Think about costs
Think about raw materials and suppliers
Think about the size of the impact of having the (£) as a currency
In a second paragraph underneath
What benefits/ drawbacks does having the Euro mean to BMW?
Think transaction costs when buying parts off of suppliers
Think importing and exporting of their vehicles
Think trading with other nations
For this task you will need to define and explain why countries use different currencies. What does this mean for the business when trading internationally? Importing/Exporting. What did it mean for countries within the EU to adopt the Euro?

Exchange rates

Now: consider the exchange rates between countries.
Define what is meant by the term interest rates
If possible, find data to evidence the current £ exchange rate. Is this considered weak or a strong currency? You may also look at previous data to show when the £ was stronger or weaker, this will provide a comparison.
What benefits / drawbacks are there for Sub