Describe the influence of two contrasting economic environments on business activities within a selected organisation.
The impact of the economic environment on businesses
You have been given the following brief by your line manager:
You need to select two different economic environments to focus on ; you will then need to give a description of what each economic environment is. You will then need to move onto researching how each economic environment has affected the way your selected business operates and include a description of this in your report, with relevant facts to support your work.
Within your description of the impact the different economic environments have on your selected business you should make reference to:
The ripple effect; levels of inflation; rates of interest linking this to the availability and cost of credit; changes in government policy (legal, fiscal, monetary)
For each economic environment and the points above you should describe the business activities your chosen business undertakes in each environment to: take advantage of the positives to increase profit/surplus or minimise the impact of negatives and protect profit/surplus.
Business activities could include the actions of the following functional areas:
H/R, marketing, finance, IT, production, product development, sales, customer service.
You will then need to compare the challenges each economic environment brings to your business by highlighting similarities and differences between the two. Include your findings in your report with facts to support your work. This can be completed in a table.
Evidence you must produce for this task
A word document with relevant facts and a bibliography of sources of information and images used.