Rahatur Rouf
P5: Describe the inflence of two contrasting economic
environments on blsiness activities within a selected
organisation
For this task, I will be describing how economic environments can infuence business actvitese I will
be using the organisaton Samsung to describe the infuence of two contrastng environments in the
business cyclee I will be suing the business cyce to describe these infuencese
The Blsiness Cycle
Business Cycle
The business cycle shows the growth and weakening of an economy and how it changes over a
periode This means that the business cycle shows the GDP of an economy and how it grows or
declines over tmee Not all business cycles for an economy is the same, as each economy has its own
path in relaton to the supply and demand of that economye The cycle also shows a trend line to
shows what directon that economy is goinge If the trend line is going upwards, like the one shown in
the business cycle above, then it means that the economy is growinge Whereas, if the trend line is
going down, then it means the economy is weakening and shrinkinge
The business cycle has four main stages that can be achieved by economiese Some of these stages
are stages that economies don’t want to go toe The frst stage I will explain is known as the ‘Boom’e
This is where all economies want to bee The reason is because as this stage consumer spending is
high as the unemployment level is low due to the growth of the economy and more people can
afford to buy thingse With this said, businesses then gain confdence and take risks to make moneye
For example, if there is a higher level of consumer spending, business will spend more to buy stocks
to sell at a higher pricee They know that they will make the money back as they know the consumer
spending level is highe This will increase the profts of the business and atract investors to their
1
P5: Describe the inflence of two contrasting economic
environments on blsiness activities within a selected
organisation
For this task, I will be describing how economic environments can infuence business actvitese I will
be using the organisaton Samsung to describe the infuence of two contrastng environments in the
business cyclee I will be suing the business cyce to describe these infuencese
The Blsiness Cycle
Business Cycle
The business cycle shows the growth and weakening of an economy and how it changes over a
periode This means that the business cycle shows the GDP of an economy and how it grows or
declines over tmee Not all business cycles for an economy is the same, as each economy has its own
path in relaton to the supply and demand of that economye The cycle also shows a trend line to
shows what directon that economy is goinge If the trend line is going upwards, like the one shown in
the business cycle above, then it means that the economy is growinge Whereas, if the trend line is
going down, then it means the economy is weakening and shrinkinge
The business cycle has four main stages that can be achieved by economiese Some of these stages
are stages that economies don’t want to go toe The frst stage I will explain is known as the ‘Boom’e
This is where all economies want to bee The reason is because as this stage consumer spending is
high as the unemployment level is low due to the growth of the economy and more people can
afford to buy thingse With this said, businesses then gain confdence and take risks to make moneye
For example, if there is a higher level of consumer spending, business will spend more to buy stocks
to sell at a higher pricee They know that they will make the money back as they know the consumer
spending level is highe This will increase the profts of the business and atract investors to their
1
