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The Business Environment P5
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The Business Environment Unit 1 P5
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Unit 1 The Business Environment P5 Alisha-Jayne CooperWithin this report I’m going to be looking at two contrastng economic environments and what
influence they have on business actvites within a selected private sector organisaton. I will be
looking at the economy so the importance of stability, availability and loss of credit, labour and the
changes in Government policy. I will also be covering other aspects of the economy. I will further be
looking at demand so things like competton, availability of substtutes and the needs and
aspiratons of consumers. Suupply, so logistcs and Government support. Also the changes in supply
and demand and then global interacton so the levels of independence. I will then be relatng all of
this informaton I have collected and relatng it directly back to the private sector business West
Mercia Constabulary.
The economic environment is made up of millions of key individual decision makers, they
can be within the buying and selling of goods, the borrowing and lending of money or even the
raising of taxes and interest rates. The key decision makers are the consumers and customers,
suppliers, bankers and the Government. West Mercia are classed as one of the decision makers in
the sense that they will help to enforce the law and if they deem for there to be an issue in a specifc
are they will seek to make a decision on how to improve this issue. However, they aren’t the direct
decision makers for their sector because they receive most of their instructons from the
Government, as they are the biggest and main decision makers in the United Kingdom.
When looking at the economic environment its very important for a business to be able to
remain stable. This is especially important when the economy is forever changing and the positon of
it is constantly shifing. emaining stable for West Mercia is paramount as they are a body that is
just down from the Government, they are law enforcers and they need to make sure that they are
able to cope with the change as they are very important when it comes to running the country. A
business like West Mercia will forecast the demand for the services within the short and medium
terms of the business. They will forecast what money they think they will need and where they will
need to spend it depending on the positon of the economy. They will seek to secure beter deals
from their suppliers and funding from organisatons if they know that they are going to struggle in
this partcular climate. For West Mercia they will inform the Government of whether there is going
to be any changes into the amount of money they need and they will aim to constantly keep savvy in
order for them to remain stable.
Throughout every businesses fnancial life they will endure both the fnancial boom and
growth and the recession and bust. Both of these are inevitable for every business and they help to
show who are miles above the rest depending on how well they survive. The growth of a business
will always have a major impact on them, both physically and fnancially. For West Mercia it would
meant that they will have more resources and more staf. The incomes of the staf will increase
which would also mean that they would have a higher amount of residual income. The rate for
unemployment within the country when they undergo a fnancial boom would decrease as well.
West Mercia is known to be a difcult police force to get into and they are also known for their long
and rigorous training. When the country goes through a boom, this means that there is more money
available to put into the training of the staf and they are able to take more on, which also means
that there is less likely to be a shortage in certain areas. In July-Sueptember of 2014 there was 1937
police ofcers whereas in July-Sueptember of 2015 there was 2102. This shows that although there
isn’t a massive increase they did have more money, which enabled for them to employ more staf.
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