Similar Businesses in Different Worlds
The main purpose of this assignment is to: describe the influence of two contrasting economic environments on business activities within Your chosen Business and describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders. Scenario
The reporter at the business magazine you work for is really busy and he has asked youto write a series ofarticles completing the following five tasks. You should be able to produce the articles as required. Task1 –Every business is affected by the economic climate. You should include descriptions of at least two economic topics that affect your business organisation’s activities. This may include effects from the ‘Credit-crunch’ and the ensuing recession. It could be linked to the new economic policies after the General Election May 6th 2010 including the coalitions proposedhike in V.A.T.or it may look at economic implications from the Volcanic Ash disruption 15th April 2010 or BP Oil spillage in the Gulf of Mexico.
A)To start with give a brief explanation of the following Key terms which could affect your business:
Economic: importance of stability; impact on business of changes in the economic environment(growth, recession, ripple effect); levels of inflation; availability and cost of credit; labour; changesin government policy (legal, fiscal, monetary) Demand: influenced by affordability; competition; availability of substitutes; level of Gross DomesticProduct (GDP); needs and aspirations of consumers
Supply: Influenced by availability of raw materials and labour; logistics; ability to produce profitably;competition for raw materials; government support Changes in supply and demand: supply and demand curves; elasticity of demand; price sensitivity;influence of branding on price sensitivity Global interaction: levels and types of interdependence (supply chains, ownership of businesses,movement of capital and business operations, reducing ability of national governments to regulateglobal businesses)
B) Once you have completed this focus on the 2 economic topics outlined in task 1and explain how each has affected your chosen business
This provides evidence for P5
Task 2 – You now need to compare the challenges your chosen organisationfaces in two different economic environments.
A) Expand on your work from P5 and now compare the challenges your business faces in the following economic environments
This provides evidence for M2
Task 3 –
Youneed to describe the influence of how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders.
To answer this identify 2 political, 2 legal and 2 social factors from the list below and describe how they influence the business activities/stakeholders of your chosen business and Lahore Ltd
government support for different types of organisations eg private, voluntary,public; fiscal eg levels and types of taxation;
direct support eg grants, loans;
providing infrastructure eg transport,internet;
enhancing skills of the working population eg education, training, research; organisations to support businesses eg Business Link;
membership of international trading communitieseg European Union
providing framework for business eg company law;
protecting consumers and employeeseg contract law, employment law, consumer protection; ensuring fair and honest tradingeg competition law.
demographic issues eg population growth or decline;
changes in structure eg ageing;
attitude to work;
attitudes to male and female roles;
This provides evidence for P6
Task 4 – To achieve M3, you should build on P6 to explain how Your chosen business and Lahore Café Bar Ltdhas adapted their activities to suit different business environments. You are not required to explain all activities comprehensively but should select at least threeactivities that have been adapted because of the political, legal and social aspects of the business environment.
This provides evidence for M3
Task 5 – For D2, learners should build on M2 and evaluate the responsiveness of either E-response-media Ltd or Lahore Café Bar Ltd to different economic environments. You should develop your work from M3 and make justified recommendations for the development of business activities in the two different business environments looking at future changes. Ie. You must evaluate how future changes in economic, political, legal and social factors, may impact on the strategy of either E-response-media Ltd or Lahore Café Bar Ltd.
This provides evidence for D2
This brief has been verified as being fit for purpose
P5 describe the influence of two contrasting economic environments on business activities within a selected organisation
M2 compare the challenges to selected business activities within a selected organisation, in two different economic environments [IE]
P6 describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders.
M3 analyse how political, legal and social factors have impacted on the two contrasting organisations.
D2 evaluate how future changes in economic political, legal and social factors, may impact on the strategy of a specified organisation.