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Business level 3 unit 38 p1

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Explain the effects, of changes in the economic environment on a selected business.

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I will be explaining the efeett f ehanget in the ee n mie envir nment n ASDA.

The butinett eyele hat diferent ttaget whieh it gr wth in the middle, b m at the t p, tl w d wn jutt
bel w b m, reeetti n bel w the middle and ree very/gr wth at the end in the middle. B m it when
the ine me it high, empl yment it high, demand f r pr duett it alt high, talet inereate and waget it
alt riting. Sl wd wn it when the ee n my it tl wing d wn and gr wth it tl wing d wn, whieh meant
pr dueti n, ine me, talet and pr fit it all tl wing d wn h wever utput it ttill e ntinuing. Reeetti n it
when there it a deeline in the ee n my whieh meant the ine me it l w, unempl yment it high and
pr dueti n it l w. Ree very it when the reeetti n it ver and the ee n my it n t n a deeline anym re
and ee n my it gr wing again. Gr wth it when there’t an inereate in the utput tueh at pr duet,
ine me and g dt and tervieet. Gr wth it alt when there’t an inereate in the g dt and tervieet.

B m will afeet ASDA in a p titive way beeaute empl yment it high, ASDA will have many empl yeet
pr viding exeellent eutt mer terviee whieh will atraet eutt mert and make them want t th p there
again and thit givet ASDA a g d reputati n. In b m peri d ine me it alt high whieh meant pe ple
have m ney t tpend and tinee ASDA it a tupermarket pe ple need their gr eeriet whieh meant they
will be tpending fen in ASDA at they have the m ney t , whieh meant ASDAS pr fit and talet will
inereate. Demand f r pr duett it alt high whieh meant ASDA will be making many talet and their talet
will inereate h wever tinee the demand bee met t high manufaeturert and tuppliert will have t
mueh pr dueti n t d whieh meant they will ttart eharging m re and that meant ASDA will have t pay
m re f r the g dt and the e tt will e me ut f their pr fit whieh meant l wer pr fit.

Reeetti n will afeet ASDA in a negative way beeaute in reeetti n ine me it l w whieh meant pe ple will
be taving their m ney inttead f tpending it and that meant talet will be l w in ASDA whieh meant they
will be making lett pr fit. Alt pr dueti n it l w whieh meant butinettet will have lett t tell whieh
meant eutt mert will be g ing eltewhere t l k f r pr duett. Butinettet will n t be able t b rr w
beeaute interett’t ratet have fallen whieh meant bankt and lendert are n t l aning. Butinettet will alt
have tl w pr duetivity beeaute they will n t have en ugh m ney t pay r hire w rkert beeaute f l w
pr fit and l w interett rate. Alt when pr dueti n it l w ASDA will have fewer pr duett whieh mean’t
they d n t need at many w rkert t w rk f r them.

Ree very will afeet ASDA in a p titive way beeaute thit it when the ee n my it n the way baek t the
way it wat whieh meant everything will be n rmal f r the butinett and butinett aetivity it being
inereated. S talet and pr fit will be riting tl wly whieh meant they will make m ney t buy g dt t
pr vide t eutt mert. Alt ine me it e ming in tl wly beeaute empl yment it baek whieh butinettet
will be making pr fit. Demand f r pr duett will tl wly be inereating whieh meant talet f r ASDA will be
inereating. At ree very happent ASDA ean b rr w m ney fr m bankt r lendert beeaute interettt are
getting baek t n rmal.

ASDA will be afeeted by gr wth p titively beeaute when the ee n my it gr wing, ine me it gr wing
whieh meant eutt mert will be tpending m re whieh meant m re pr fit, pr dueti n it gr wing whieh
meant butinettet ean buy m re and tell m re t tatitfy eutt mert. There are alt m re j bt whieh
mean’t m re m ney t tpend. Alt m re j bt meant they will have m re empl yeet available t

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