During these times of change business may have to change its orgainsation, operation and its nature to deal with the challenges of each stage in the business life cycle. For business to be successful they must constantly develop and change strategies to deal with the growth of the business or the life of the business may be cut short.
Economic Unemployment: In an economic depression unemployment rates and decrease in the flow of money into the economy. Thorpe Park will find it exceedingly difficult to earn profits. As a result they reduce their staffs that lead to unemployment. But they only hire seasonal staff who only work 9 months of the year so employees will become unemployed at the end of the 9 months every year.
Economic Factors Businesses are affected by the economy and sometimes the economy can have a dramatic drop in countries causing issues for some business mainly due to 4 factors. These factors are inflation, Economic growth, Exchange rates and unemployment.
©2010 CfA PAGE 4 1. Statutory Rights and Responsibilities All Learners need to know that employers and employees have a range of statutory responsibilities and rights under Employment Law and that employment can be affected by other legislation as well. 1.1 Contracts of Employment1
1.1 List the aspects of employment covered by law: • Union rights • Training • Health and Safety within the work place • Hours worked • Holiday pay • Equal pay • Redundancy/dismissal • Employment contracts • Age discrimination Employment Law helps to govern the relationships between the employee and the employer with relations to guidelines.
Inflation is the sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. (Investopedia) During periods of inflation, the prices of products and services will rise. There are several reasons why an economy would see a rise in inflation. Decrease in supplies, corporate deciding to charge more, and consumer confidence are some of the reasons why an economy would see the inflation rate increase. Consumer confidence is when consumers gain more confidence in spending due to a low unemployment rate and wages being stable. Decrease in supplies is when consumers are willing to pay more for a product or service is that is slowly becoming unavailable due to a decrease in supplies. Corporate decisions are when the corporations basically decide
currently shows signs of improvement based on a declining unemployment rate increased consumer spending and falling foreclosure rate in 2011. The topic of unemployment is one that has affected Americans greatly during the recession. Millions of people in the United States have found it very difficult gain employment.
The changes in economic environment will affect a business, the profit of the business will be affected because its affect the price and income of a business, which are the main aspect of a business.
Political: this inturns the legislation and government rules of the country that may influence and pose as a threat to the business,
ii. Government stability Government stability. Government stability helps residents raise the standard of living and stability of personal life. So it increased the need of pub industry to meet their personal satisfaction.
Activity 1 The purpose of Employment Law is to provide legal protection to employees and employers. Employment Law is set up to ensure legal guidelines and standards are met with recruiting, working standards, pay and allowances and the disciplinary process. It is also aimed at protecting a person’s Equality and Human Rights such as
Economics – organisations operate in environments that have dynamic economic cycles. This necessitates change so as to keep a breast with prevailing economic trends. Good examples include economic cycles, unemployment rates, inflation and even foreign exchange rates. For instance high inflation rates reduce disposable incomes of households thus lowering their purchasing powers. This may signal the production department to come up with new product that meets the demand of consumers (British Journal of Management, 67).
Employment or labor laws have been developed to facilitate smooth relationship between employers and employees. Employment laws provide rules and regulations that should govern both the employer and the employees in their places of work. Employment laws discuss issues related to child labor, wages and salaries, retirement, working conditions, compensations, incentives and employment benefits among others. The major objective is to ensure the employer does not exploit the employee and on the other hand, the employee honors the terms and conditions of the job as presented by the employer.