Summary 2021 BTEC Business Level 3 - UNIT 1: P5,M2
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Course
Unit 1 -Business Environment
Institution
PEARSON (PEARSON)
BTEC Business Level 3: Unit Business Environment. This Assignment is very well structured with easy to read subheadings. Using this Assignment as your template will ensure you attain Distinction overall.
business used was Thorpe park.
The document includes P5, M2:
P5- Describe the influence ...
Describe what impact this would have on the activities carried out by two different functional areas of Thorpe
Park (P5)
By looking at both graphs you can see they vary in difference as UKs Thorpe Parks inflation rate increases then approximately 6 months
later deduces massively from 5.2% to 2.2% this I good for UKs Thorpe Park as having low inflation rate means low costs ect compared
to high buying and selling costs. Then 6 months later the interests rate stayed constant and was not as high this means UKs Thorpe
Parks economy was doing well because by having high inflation rates means it increases price for everything such as living
costs ect which makes it harder for individuals. Whereas Brazils Thorpe Parks graph shows their rate starts from 4.5% first of all on
their axis, this can mean their inflation will be very high as their graph already shows their lowest rate starts from 4.5%
whereas UKs Thorpe Parks starts at 2. Brazils Thorpe Parks inflation rate gradually increases from 6.1% to 7.3% in 6 months this shows
its really high which means their costs are very high and costs and demand must be really high therefore the high inflation rate. It then
drops this is because the economy must be not receiving enough money meaning people can’t afford and there is a shortage of money
circulation or having more goods produced than there is demand for, which means businesses must decrease their prices to get people
to buy those, this is why it had gone down drastically. It then increased to not as much because the economy demands more money
from the people as living costs and supplies must have gone up due to higher demand ect.
, The impacts it has on Finance in the country’s Thorpe Park Is that if the inflation is high this means living costs, raw materials, fuel and
wages ect is increased and costs more for people to purchase this happens when products are in high demand, so the country’s Thorpe
Park increase the rate of inflation to make more money and profit as its in high demand for the people living in the country’s Thorpe
Park. If the inflation rate then decreases this means that the finance of the country’s Thorpe Park is lacking money and there is a
shortage of money circulation, then the country’s Thorpe Park will reduce inflations costs as there has been a high rise in cost such as
raw materials, fuel and higher wages which means employees working in a business will get paid more. This means for the business will
deduce amount of profit they could be earning as they will have to pay more for stock as products are high on demand and prices gone
up and also will pay more to their employees which leaves businesses not as much. The finance in a country’s Thorpe Park relies on the
inflation rate to be stable enough so there is high demand and also reasonable cost price for products and fuels ect, which will enable
the economy to be good so people will be able to purchase products and there will be high demand ect.
The impact that a country’s Thorpe Park has high inflation rate it has on marketing is that when inflation is high in a country’s Thorpe
Park the products, living costs will be increased and cost more than If it was low. If a country’s Thorpe Parks inflation is high this
means products are in demand and are use by people, then marketing can be completed but if the inflation goes down this means
people are struggling to spend their money on raw mats ect therefore inflation drops which will increase people’s money being
exchanged. This also means that marketing can be completed as people will be spending money. If the inflation rate decreases then this
means as marketing team will be marketing and advertising products and thrope park, more people will be wanting to come and visit the park
due to low inflation rates items and products will be cheaper in stores meaning more chance of products being purchased and thrope park
service being sued.
How could Thorpe Park respond to these challenges? You must make reference to the actions that could be
taken by the functional areas outlined in P5 (M2)
If Thorpe Park had positive finance this means they are making enough money to cover all costs, pay their staff and keep money for
profit ect. They then can invest their money in other products or service they can offer to gain more money, or they can increase all
costs by a small % in order to increase revenue. This will happen as if they are financially stable and do not have any financial problem
this means they are in high demand which means their cots are being covered, they can make more money which will help them.
If Thorpe Park are going through financial challenges eg can’t pay for supplies or stock, difficult to pay staff then the firstly can reduce
costs of admissions and tickets. This will encourage and increase amount of people, can decrease food costs which will encourage their
customers to purchase food this will mean customers will spend more money within which will cover costs and help Thorpe Park
financial issue. By using the ripple effect which allows people to have more money in order to spend more on products, producers will
have enough money to make more goods which means they will hire more labour and invest in machinery as a result other firms will
take on more labour.
Actions using marketing can be advertising cheaper tickets for admission into Thorpe Park land in Brazils Thorpe Park or Uks Thorpe
Park, by advertising cheaper tickets and better offers this will encourage more people to come and pay to be in Thorpe Parkland rather
than being discouraged by seeing high ticket price ect. Can advertise online, newspapers ect. When inflation rate is high marketing can
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