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P5: Apple & Adidas
Describe the influence of two contrasting economic envoirment on business activities within a
selected organisations?
For this assignment I am going to describe the influence of two contrasting economic envoirment on
business activities within a selected organisations the company`s I have chosen for this assignment
are Apple and Adidas. Apple is a company who is set to make profit and is headquarted in California.
Adidas is also a profit company headquarted in Herzogenaurach.
Factors America Germany
Population: The number of people 325,256,991 in November 2017 82,176,276 in November 2017
in a country.
Average Salary: Average Salary of $859 weekly in August 2017 €1.014 weekly in June 2017
the working people.
Inflation Rate: The rate at which 2.2% in October 2017 1.76% in September 2017
prices of goods and services
increase.
GDP: The value of finished goods 18569.10 T in October 2017 3466.76 B in October 2017
and services in a country during a
specific period.
Interest Rate: The percentage of a 1.25% in October 0.0% in October 2017
sum of borrowed money.
Unemployed Rate: The rates of 4.4% in August 2017 3.7% in June 2017
people without jobs.
Employment Rate: The rates of 60.20% in October 2017 74.80% in October 2017
people with jobs.
In Germany the GDP is currently 3466.76 B this means that the economy of Germany is in a stage of
economic growth. This influences Adidas because if there is economic growth the Unemployed rate
will fall which means more there will be more employees for companies. With the economic growth
the Average Salary will also increase which means the population of Germany will have more money
to buy goods from Adidas this means an increase in revenue and profit for Adidas. If the German
economy decide to raise the Inflation Rate, Adidas needs to increase the price of their products.
In the US the GDP is currently 18569.10 B this means that the economy of the US is in a stage of
slowly recovery from the recession in 2008. This influences Apple because the population of America
doesn`t have enough money, they will have to think twice before they buy a product from Apple. If
the American Economy decides to drop the inflation rate drops this will have a huge impact on Apple,
because Apple will have to ask a lower price for their products which means they will make a less
revenue and profit.
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