The Influence Of Two Economic Environments On Business Activities

go through cycles of expansion, recession and recovery. Monetary and fiscal policies can affect the timing and length of these cycles. In the expansion phase, the economy grows, businesses add jobs and consumer spending increases. At some point, known as

Qantas is Australia’s largest domestic and international airline. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas operations include catering, tourism and E-commerce devoted to transport and travel. In order to have an effective business and operations process, a company, like Qantas must be aware of the influences that can affect it. By being aware of the influences it enables the business to make decision and choices that can get the most out of each influence, by doing this it can assist the business in its endeavours for success.

The effect of changes in the economic environment has an effect on Nissan UK. This has been shown in the way the economy has been changing recently. The changes in the economic environment are going to show its effects on Nissan UK. This is going to be shown in the number of sales they are making. The economic review for December 2011 shows how the manufacturing output

Human behavior is sensitive to and strongly influenced by its environment. When the economy starts recession, manufactures would shrink the volume of production, investor will invest less and people will spend less money on new products, and as the result, which would causes the economy become worse. And on the other hand, good economy leads people to buy more.

A recession is characterised by a period of at least two consecutive quarters of negative growth. During a recession, demand and supply of goods and services in the economy contracts. The UK economy contracted by 1.5% in the last quarter of 2008 and the Gross Domestic Product experienced its biggest fall since the second quarter of 1980 (Kowelle 2009). This is the first time since the inception of the NMW that employment has fallen. Unemployment is rapidly on the increase.

The two economic environments that I would be describing about are recession and growth on the business activities of John Lewis. Growth occurs when more goods are being produced and consumed, and also incomes are rising. During growth people spend more money on goods and services as they have more money to spend and also businesses would invest more and hire more labour as it links to increasing demand. Recession however occurs when people involved in business become more cautious so they cut their spending down and also cut back on their orders as well as making workers unemployed or redundant.

Tesco was feeling the pressure because they saw a fall in profit since 2008 and were worried that their customers would not return. However as time moved on the economy started to pick up again in 2009. Customers started to spend more and were more comfortable about their current financial situation. However Tesco realised that their customers were not purchasing goods of high price, meaning that customers were likely to purchase readymade meals and organic products. The demand for a product depends on the economic factors such as interest, inflation and local employment levels. Tesco doesn’t have control on the economic factors; however these do have an effect on the business.

Economics growth is, it the short run an increase in real GDP and in the long run an increase in the productive capacity of an economy (the maximum output that the economy can produce). GDP stands for Gross Domestic Product which is the country’s production of goods and services valued at market price in a given time period. Real GDP is when these figures are corrected for inflation using a base year (The UK uses 2003 as its base year). It can be measured in three different ways; the output measure is the value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy, construction, the service sector and government. The

All of these factors have an enormous impact on my selected business (Barclays) as the economy goes from growth and decline. As well as many others, Barclays is majorly affected as it is in the financial industry. These different factors appear throughout what is called the ‘Business Cycle’. The cycle shows the fluctuation of the activity within the economy over a period of time and consists of 4 main stages; as well as many others,

Evaluate the impact of changes in the economic environment on a selected business – D1

Owning a business, or managing, within a business, can be a challenging process and ultimately effect the success, failure and bottom line. There are many external forces, or environments, that influence decisions that are ultimately made by Board of Directors, executives, supervisors and management teams. This can have an economic effect locally or ultimately have a global reach. Today’s focus is on the differences between the macro and competitive business environments (Jones et al., 2006).

Without stability security is harder to maintain and both are needed to promote profitable economic activity.

Stability basically means that KK Spa continues doing what it is current doing and having the incremental growth that is satisfied. During this stage, KK Spa put its effort in improving efficiency while the environment is remain unchanged. For example, during economy turmoil whereby the environment is said to be volatile, it is important for the company to remain at its status quo and do not make any big decisions. KK Spa also can choose to use this strategy when it is in a mature stage as there are few or no growth prospect. After KK Spa has gone through the expansion phase, it is vital to undergo the ‘cool off’ stage. This is to ensure that the current business is manageable and

Timing of the business cycle is not predictable, but its phases seem to be. Many economists site four phases—prosperity, liquidation, depression, and recovery. During a period of prosperity, a rise in production leads to increases in employment, wages, and profits. Obstacles then begin to obstruct further expansion. Production costs can increase, helping create a rise in prices, and

Question 1The concept of Business EnvironmentBusiness environment can be understood as the combination of all environmental conditions and influences that are capable of affecting or influencing business activities. According to Anyanwu et al (1996) defines the environment of business as the aggregation of the pattern of all the external and internal conditions and influences that affect the existence, growth and development of the business. Opportunities and threats may be associated with external environment while the strengths and weakness may be associated with internal environment of the business (Audu, 2010a).In this paper, we will compare the business environment of two countries namely: Nigeria and Norway. The reason for choosing these two countries include the fact that both are part of the top ten net oil-exporting nations for which hydrocarbon exports account for more than 40% of total exports. We will compare and contrast the fiscal policy of both countries and the business environment.Overview of Nigeria and NorwayLet give a quick fact summary of these two countries:NigeriaNorwayPopulation169.3 million5.1 millionGDP (PPP)$479.3 billion$280.0 billion6.3% growth0.8% growth7.0% 5-year compound annual growth0.8% 5-year compound annual growth$2,831 per capita$54,947 per capitaUnemployment7.5%3.5%Inflation (CPI)8.5%2.1%FDI Inflow$5.6 billion$9.3 billionBusiness Freedom48.392.1Labor Freedom77.748.2Monetary Freedom70.481.7Government Spending76.143.8Fiscal