P5- the Business Environment

P5: Describe the influence of two contrasting stinting surrounds on business activities within a selected organisation The business surround consists of a range of major influences that ar bulgeside a business. These include political, social and legal channelizes that affect a business. I leave be looking at how two economic environmental problems influence a business. Economic Environment: The summation of economic factors, such as employment, income, inflation, interest rates, harvestingivity, and wealth, that influence the profane behavior of consumers and institutions. The economy is do up of millions of individual lemniscus point nettlers who buy and sell goods, borrow and lend money, and arise taxes and change interest rates. From the business point of view, the most significant of these decision makers are: * Consumers * Suppliers * Bankers and other lenders * The government Although the economy is made up of millions of tell apa rt decision makers, there are clear patterns to the types of decisions they make. For example, at times of consumer confidence, most consumers go out brook their levels of spending and businesses will out harvest-festival their supply of goods.

Impact of changes in the economic environment harvest-tide: The enemy of a time out is a period of economic growth. Growth occurs when more than goods are being produced and consumed, and incomes are rising. Economic growth is associated with a mess up effect because people have more money to spend, they will buy more goods. Producers will make more goods. They wil l hire more labour and redact in current m! achinery and equipment. This leads to increase in demand for firms producing machinery and equipment so they take on more labour. Recession is a pregnant decline in activity across the economy, lasting endless than a some months. The technical indicator of a recession is two true quarters of negative economic growth as mensurable by a countrys gross house servant product (GDP). Recession occurs...If you want to get a well(p) essay, order it on our website: OrderCustomPaper.com

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