Unit 1: The Business Environment
By Rais Mauthoor
Similar Businesses in Different Worlds
Introduction
Primarily, this assignment will describe the influences of two contrasting economic
environments on business activities within Coca-Cola. Secondly, the report will compare
the challenges to selected business activities within Coca-Cola in two different
economic environments. Afterwards, there will be a description of how political, legal
and social factors are impacting upon the business activities of Coca-Cola and their
stakeholders. Furthermore, this assignment will analyse how political, legal and social
factors have impacted on Coca-Cola and Oxfam. Lastly, this report will evaluate how
future changes in economic, political, legal and social factors may have impacted on the
strategy of Coca-Cola.
P5 describe the influence of two contrasting economic
environments on business activities within a selected
organisation
The chosen organisations for this assignment are Coca-Cola and Tesco.
Economic
Importance of stability
Economies can be either stable or unstable, a stable economy can give an accurate
prediction of demand which means that businesses can discover what time is
appropriate to make their products available. It can also help when ordering supplies, if
a business knows when a product is in demand, they will know that they need to order it
prior to putting the product back on the market.
Impact on business of changes in the economic environment
Within the economic environment, there are periods of economic growth and recession.
Growth is when more and more merchandise is being manufactured and consumed.
During the growth period, customers have more disposable income and as a result they
begin to spend more as businesses produce more goods. There will be an increase in
employment opportunities since businesses will need more labourers to handle
industrial tools and equipment. This equipment will need to be purchased by the
manufacturers and they will need more employees to assist in the production of the
equipment. A recession is a period when the economy falls with businesses limiting
manufacturing and becoming more aware and cautious of expenditure. People have
less disposable income and as a result they begin to spend less. Businesses will
prevent further orders of industrial tools and equipment to save money and cut costs.
Moreover, during a recession there may be redundancies and less employment
opportunities.
By Rais Mauthoor
Similar Businesses in Different Worlds
Introduction
Primarily, this assignment will describe the influences of two contrasting economic
environments on business activities within Coca-Cola. Secondly, the report will compare
the challenges to selected business activities within Coca-Cola in two different
economic environments. Afterwards, there will be a description of how political, legal
and social factors are impacting upon the business activities of Coca-Cola and their
stakeholders. Furthermore, this assignment will analyse how political, legal and social
factors have impacted on Coca-Cola and Oxfam. Lastly, this report will evaluate how
future changes in economic, political, legal and social factors may have impacted on the
strategy of Coca-Cola.
P5 describe the influence of two contrasting economic
environments on business activities within a selected
organisation
The chosen organisations for this assignment are Coca-Cola and Tesco.
Economic
Importance of stability
Economies can be either stable or unstable, a stable economy can give an accurate
prediction of demand which means that businesses can discover what time is
appropriate to make their products available. It can also help when ordering supplies, if
a business knows when a product is in demand, they will know that they need to order it
prior to putting the product back on the market.
Impact on business of changes in the economic environment
Within the economic environment, there are periods of economic growth and recession.
Growth is when more and more merchandise is being manufactured and consumed.
During the growth period, customers have more disposable income and as a result they
begin to spend more as businesses produce more goods. There will be an increase in
employment opportunities since businesses will need more labourers to handle
industrial tools and equipment. This equipment will need to be purchased by the
manufacturers and they will need more employees to assist in the production of the
equipment. A recession is a period when the economy falls with businesses limiting
manufacturing and becoming more aware and cautious of expenditure. People have
less disposable income and as a result they begin to spend less. Businesses will
prevent further orders of industrial tools and equipment to save money and cut costs.
Moreover, during a recession there may be redundancies and less employment
opportunities.
