Unit 38: Business and Economic Environment P2 M1 D1
P2 M1 D1
Unit – 38 (Business and the
Economic Environment)
BTEC National Diploma In Business Level 3
The Date
Your Name
Your Teacher
1
,Unit 38: Business and Economic Environment P2 M1 D1
Unit 38 – Business and Economic Environment
To:
From:
Date:
Ref:
On completion of this unit I should:
1) Understand the impact on business of changes in the economic environment.
2) Know how government spending impacts on businesses.
3) Understand fiscal and monetary policies and the effects on spending.
4) Know how the international economy affects UK business and competition.
Task 1:
a) Identify how government policies impact on a selected business.
b) Analyse the implications of government policies for a selected business.
c) Evaluate the impact of changes in the economic environment on a selected business.
2
, Unit 38: Business and Economic Environment P2 M1 D1
Government Policies affecting businesses
Policy Define Policy Effects on JLR & Currys PCW
Positive or Negative
Economic Policy Economic policy – refers to With Economy rising due to the
the actions that governments Government’s Economic Policy, all companies
take in the economic field. It similar to Curry’s PC World (Dixons
covers the systems for Carphone) are in a very sound and pleasant
setting levels of taxation, position due to most factors such as inflation,
government budgets, the interest rates, unemployment and taxes, all
money supply and interest favour improvements in business opportunities.
rates as well as the labour The sound economic position in the UK
market, national ownership, brought about by the present Coalition
ect… A Government can Government, has changed the potential for all
put together a package of businesses such as Curry’s PC World to profit
measures that it believes or increase profits, because inflation is very
will deal with these issues, low (1%), the Bank of England interest rate is
sometimes the objectives of still very low. (0.5%), the unemployment figure
each measure will conflict. (below 6%) and the GDP for 2014 is likely to
be close to 3%.
These entire positive factors must greatly
please a companies like Curry’s PC World and
Land Rover Jaguar, as they represent an almost
ideal situation for any company to succeed in.
At times like this most companies similar to
Curry’s PC World and Land Rover Jaguar will
be investing in enlarging their assets,
considering mergers, possibly employing more
personnel and introducing new products as the
above mentioned conditions all lend
themselves to success.
However, happens that actions taken by UK’s
parliament lead to situation of the country’s
economy getting even worse than it was since
the economy is a very complicating
combination of different sort of factors and
processes, which are really hard to control.
Besides that it is natural that economy goes into
the recession after ‘’boom”. This slump down
is caused by different domestic and
international activities, which took place during
the “boom’’, thus economists believe that
recession as a part of business cycle cannot be
3
P2 M1 D1
Unit – 38 (Business and the
Economic Environment)
BTEC National Diploma In Business Level 3
The Date
Your Name
Your Teacher
1
,Unit 38: Business and Economic Environment P2 M1 D1
Unit 38 – Business and Economic Environment
To:
From:
Date:
Ref:
On completion of this unit I should:
1) Understand the impact on business of changes in the economic environment.
2) Know how government spending impacts on businesses.
3) Understand fiscal and monetary policies and the effects on spending.
4) Know how the international economy affects UK business and competition.
Task 1:
a) Identify how government policies impact on a selected business.
b) Analyse the implications of government policies for a selected business.
c) Evaluate the impact of changes in the economic environment on a selected business.
2
, Unit 38: Business and Economic Environment P2 M1 D1
Government Policies affecting businesses
Policy Define Policy Effects on JLR & Currys PCW
Positive or Negative
Economic Policy Economic policy – refers to With Economy rising due to the
the actions that governments Government’s Economic Policy, all companies
take in the economic field. It similar to Curry’s PC World (Dixons
covers the systems for Carphone) are in a very sound and pleasant
setting levels of taxation, position due to most factors such as inflation,
government budgets, the interest rates, unemployment and taxes, all
money supply and interest favour improvements in business opportunities.
rates as well as the labour The sound economic position in the UK
market, national ownership, brought about by the present Coalition
ect… A Government can Government, has changed the potential for all
put together a package of businesses such as Curry’s PC World to profit
measures that it believes or increase profits, because inflation is very
will deal with these issues, low (1%), the Bank of England interest rate is
sometimes the objectives of still very low. (0.5%), the unemployment figure
each measure will conflict. (below 6%) and the GDP for 2014 is likely to
be close to 3%.
These entire positive factors must greatly
please a companies like Curry’s PC World and
Land Rover Jaguar, as they represent an almost
ideal situation for any company to succeed in.
At times like this most companies similar to
Curry’s PC World and Land Rover Jaguar will
be investing in enlarging their assets,
considering mergers, possibly employing more
personnel and introducing new products as the
above mentioned conditions all lend
themselves to success.
However, happens that actions taken by UK’s
parliament lead to situation of the country’s
economy getting even worse than it was since
the economy is a very complicating
combination of different sort of factors and
processes, which are really hard to control.
Besides that it is natural that economy goes into
the recession after ‘’boom”. This slump down
is caused by different domestic and
international activities, which took place during
the “boom’’, thus economists believe that
recession as a part of business cycle cannot be
3
