Unit 1 1
The Business Environment
Unit 1 (M2) – Compare the challenges to selected business
activities within a selected organisation, in two different
economic environments.
In this task, I will be comparing the challenges of Samsung in two economic
environments.
Economic Interest Exchange
GDP Inflation Unemployment
indicator rate rate
£1 =
2,622
UK 2.3% / 4.0% 1428.83
trillion
Korean won
£1 =
1,082
Korea 1.93% / 3.68% 1428.83
billion
Korean won
When GDP is low then this is harder for Samsung. Attracting customers when the
economy is in a recession is a lot harder when you are a company like Samsung.
When Samsung have problems attracting customers they need to think of solution to
get more customers back. A way doing this would be by lowering the prices or by
giving special offers to their customers. The outcome of this would be that the
company would not be making as much profits. The impact of this would be that
Samsung wouldn’t be able to grow and could even lose profit. The consequence of
this would be that the company would need to work a lot harder when the economy
is doing good to get it back to how it used to be.
Boom is the highest point in economic growth, products are cheap as well as people
being able to spend money without having to worry, salaries and wages are
increased so people like to spend money. For businesses demand is high and the
increase of jobs are available for people. This makes boom the highest point for
people and businesses. The market is happy and smoother than any other part of
the business cycle. Boom is the peak of economic growth.
Recession is the worst part of the business cycle to both businesses and people but
it is also caused by the people and small businesses. It is the downfall point of the
economic growth. Everyday products such as fuel and water will rise in price.
Unemployment will be high as well as wage and salaries will decreases. People may
be let go from the jobs. For businesses demand is low and the generation of money
is slow. Recession officially occurs after two quarters of the year.
Boom and recession influences many parts in employment of Samsung as the
employers are in the retail category of work which means the sale of goods or
commodities in small quantities directly to consumers. Samsung will face a lot of
issues when it comes to these economic environments. For instance, if the economy
is in recession Samsung will have to face decision of letting employees go because
of cost and importance and this will then have an effect on the business as they will
have to deal with less staff and more activities. They may even cut down on the
wages given to their employees as they may not be able to afford and this will
The Business Environment
Unit 1 (M2) – Compare the challenges to selected business
activities within a selected organisation, in two different
economic environments.
In this task, I will be comparing the challenges of Samsung in two economic
environments.
Economic Interest Exchange
GDP Inflation Unemployment
indicator rate rate
£1 =
2,622
UK 2.3% / 4.0% 1428.83
trillion
Korean won
£1 =
1,082
Korea 1.93% / 3.68% 1428.83
billion
Korean won
When GDP is low then this is harder for Samsung. Attracting customers when the
economy is in a recession is a lot harder when you are a company like Samsung.
When Samsung have problems attracting customers they need to think of solution to
get more customers back. A way doing this would be by lowering the prices or by
giving special offers to their customers. The outcome of this would be that the
company would not be making as much profits. The impact of this would be that
Samsung wouldn’t be able to grow and could even lose profit. The consequence of
this would be that the company would need to work a lot harder when the economy
is doing good to get it back to how it used to be.
Boom is the highest point in economic growth, products are cheap as well as people
being able to spend money without having to worry, salaries and wages are
increased so people like to spend money. For businesses demand is high and the
increase of jobs are available for people. This makes boom the highest point for
people and businesses. The market is happy and smoother than any other part of
the business cycle. Boom is the peak of economic growth.
Recession is the worst part of the business cycle to both businesses and people but
it is also caused by the people and small businesses. It is the downfall point of the
economic growth. Everyday products such as fuel and water will rise in price.
Unemployment will be high as well as wage and salaries will decreases. People may
be let go from the jobs. For businesses demand is low and the generation of money
is slow. Recession officially occurs after two quarters of the year.
Boom and recession influences many parts in employment of Samsung as the
employers are in the retail category of work which means the sale of goods or
commodities in small quantities directly to consumers. Samsung will face a lot of
issues when it comes to these economic environments. For instance, if the economy
is in recession Samsung will have to face decision of letting employees go because
of cost and importance and this will then have an effect on the business as they will
have to deal with less staff and more activities. They may even cut down on the
wages given to their employees as they may not be able to afford and this will
