100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
UNIT 1 P5 – Describe the influence of two contrasting economic environment’s on business activities within a selected organisation (LEVEL 3 BUSINESS DIPLOMA) £3.49   Add to cart

Essay

UNIT 1 P5 – Describe the influence of two contrasting economic environment’s on business activities within a selected organisation (LEVEL 3 BUSINESS DIPLOMA)

2 reviews
 2117 views  9 purchases

I have achieved Distinction in all my units

Preview 1 out of 8  pages

  • October 12, 2016
  • 8
  • 2015/2016
  • Essay
  • Unknown
  • Unknown
All documents for this subject (8)

2  reviews

review-writer-avatar

By: sofia24 • 4 year ago

review-writer-avatar

By: 1fufubu • 7 year ago

avatar-seller
bethaniebrown1
Unit 1 Bethanie Brown


P5 – Describe the influence of two contrasting economic environment’s on business activities within
a selected organisation



There are many different economic environments and influences that affect a business regardless of
country and recognisability of the company. Though these effects can potentially be extremely
damaging, there are ways for the company to recover and improve.

To summarise the meaning of economic environment are factors external to a business that cause
effect such as employment, income, interest rates etc.:. The key influences of the causation of these
factors are: consumers, bankers, the government and suppliers. Bellow I will be highlighting two key
economic environment influences that will greatly effect many organisations.

Coca-Cola as a company is a well-established brand that is most defiantly effects by all these factors,
bellow I will be explaining the effects on businesses in general including Coca-Cola.

The overall meaning of recession refers to a period of time at which there is an economic decline
and as an outcome, trade is reduced. There are many factors that cause a recession and those are as
follows:

Credit Crunch – This is the shortage of finance in the economy, due to banks and other investors less
willing to lend money to those looking for a loan. This results in businesses especially not able to
borrow money to pay off their expenditure, which causes the level of debt of businesses and family’s
being greatly increased.

Falling house prices – this is linked with the credit crunch which causes a shortage of mortgages
being lent and paid back. This result in family’s less willing to invest in companies as their bills and
living essentials become their first priority.

Inflation – Inflation causes incomes to be reduced, which again limits the public’s spending.

Consumer Confidence – with job loss and reduced finance in the economy it causes consumers’
confident to decrease resulting in a decrease of spending.

The UK recession

During 2008 to 2013 the UK suffered through its greatest recession, the main course of this was due
to the banks not willing to lend, communally known as the credit crunch. It was a period of time
where unemployment was at its highest and spending was at its lowest. More than 200,000 small
businesses closed and over 8.7million jobs were lost. Over time the UK recovered but barely so. The
graph bellow shows how though the country is recovering it still has very far to come.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller bethaniebrown1. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £3.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67474 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£3.49  9x  sold
  • (2)
  Add to cart