7. 5- Analysing external environment to assess opportunities & threats : Economic
change
◦
GDP /Gross domestic product) value of
- a
country's total
output of goods $ services
over a period of time (year)
↳ doesn't measure environmental impact of businesses etc .
↑ consumerdemand ↑ prices (inflation)=
↑ profits dividends , profit
,
.
↑ investment
firms working at full
capacity expansion plant
-
↑ costs , shortage of resources
slowly ↑ demand
↓
unemployment ,
/ firms
grow $ expand
.
Pay levels↑
Revenues 31 profits↑
New business
start-ups
spare capacity
to meet demand
(6 months of ↓ GDP)
'
• ↓ demand , investment ,
consumer demand
•
↓ demand = excess stock ,
• More stores close
↓ prices , ↓ output ↓ profits ↑
unemployment
= •
rationalisation
delayerng charge low prices to↑ demand
-
-
•
,
to cut costs •
deflation may occur
↑ demand for normal goods
-
.
↓ inferior goods
spare capacity , low investment
-
. Business closures , ↑ bad debts
change
◦
GDP /Gross domestic product) value of
- a
country's total
output of goods $ services
over a period of time (year)
↳ doesn't measure environmental impact of businesses etc .
↑ consumerdemand ↑ prices (inflation)=
↑ profits dividends , profit
,
.
↑ investment
firms working at full
capacity expansion plant
-
↑ costs , shortage of resources
slowly ↑ demand
↓
unemployment ,
/ firms
grow $ expand
.
Pay levels↑
Revenues 31 profits↑
New business
start-ups
spare capacity
to meet demand
(6 months of ↓ GDP)
'
• ↓ demand , investment ,
consumer demand
•
↓ demand = excess stock ,
• More stores close
↓ prices , ↓ output ↓ profits ↑
unemployment
= •
rationalisation
delayerng charge low prices to↑ demand
-
-
•
,
to cut costs •
deflation may occur
↑ demand for normal goods
-
.
↓ inferior goods
spare capacity , low investment
-
. Business closures , ↑ bad debts
