This website uses cookies to ensure you have the best experience. Learn more

P5 & M2 The Buisness Environment

3048 words - 13 pages

M2 – Compare the challenges to selected business activities within a selected organisation in two different economic environments
The two contrasting environments I am going to look at are:
1) Economy in Growth –Economic growth is the increase in the market value of the goods and services produced by an economy over time. Economic growth can be measured by changes in inflation. Gross Domestic Product is used to measure population differences between countries.
Tesco
Stability - Stable economic conditions for Tesco means that they can make better informed decisions because there is more stability within the economy. If the economy in the UK is stable, Tesco’s are likely to have a ...view middle of the document...

5% currently. This shows that borrowing money is very cheap at the moment. This would be good for Tesco if they wish to expand at present. If interest rates are low then Tesco will be willing to borrow as they feel that they can afford their repayments. This will increase demand for goods and services within their business and help economic growth.
Government support – The Government provides us with new road networks, rail and air structures may mean that if Tesco stores develops and locates in new areas it would be important that accessibility for consumers would be made more convenient. Tesco is helped by the Government in the area of planning policy. This has allowed them to dominate the retail landscape in many areas but is due to its long term policy of adding to its land bank and its capital programme. Tesco is subject to the same planning laws and constraints as any other supermarket chain. Apart from this, the Government doesn’t really help Tesco at all. Tesco are successful because of its long term commercial strategies and operational excellence.
Unemployment Rate - A low rate of unemployment means that there are less people unemployed and therefore demand for goods and services increases. This will have a positive effect for Tesco as they are able to employ more staff because of their increase in demand for their products. Tesco can offer more training programmes and staff can promote themselves within the Tesco business.

Demand and Supply –
Demand Curve
Supply Curve
Price
Quantity
Market Price
Market Quantity

The Demand and Supply curves determine the market price of the goods or services.
Demand is the quantity of goods or services that consumers are willing and able to buy at a given price and period of time. The diagram shows that as the price decreases the quantity demanded increases and as price increases the quantity demanded decreases. The demand curve slopes downwards from left to right.
Factors influencing demand on Tesco
Affordability – Tesco’s customers will buy their products if they are reasonably priced. During a time of recession, a customer may not have as much disposable income to spend on more expensive items therefore Tesco must adapt affordable prices.
Competition – Consumers will browse between different stores in order to obtain goods at the best price. It is important for Tesco to ensure that they offer competitive prices in order to make more sales.
Level of Income – When customers have more money to spend they will buy not only essential items but luxuries as well. If incomes are low it will have the reverse effect on businesses like Tesco. Tesco will be aware of the GDP and manage their business accordingly.
Needs of customers – Customers will buy according to whether or not they have enough money for essential items or if they have after essentials any disposable income. In times of high GDP customers will demand luxuries whereas if the GDP is low they are inclined...

Other Essays Like P5 & M2 the Buisness Environment

Types of Abuse Essay

2476 words - 10 pages and regulations which govern safeguarding adults work | M2 describe legislation and regulations, working strategies and procedures used in health and social care to reduce the risk of two types of abuse | | P5 outline working strategies and procedures used in health and social care to reduce the risk of abuse [CT1; SM2] | | | | P6 explain the role of supportive | M3 discuss the role of supportive | D2 evaluate the role of multi

Business P5 Essay

1035 words - 5 pages Assignment Three – Task One and Two – P5 + M2. Economic Environment: The totality of economic factors, such as employment, income, inflation, interest rates, productivity, and wealth, that influence the buying behaviour of consumers and institutions. Business Cycle: A cycle, or series of cycles of economic expansion and contraction. Growth and Recession: Period of general economic decline, defined usually as a contraction in the GDP for

Business Unit 4

1012 words - 5 pages appropriateness of each example. [P4] Task 5 There are various laws that govern the use of information in business. In addition to these laws are a variety of ethical issues that have to be addressed. You must explain how the business concerned must comply with these. You should explain current legislation and what codes of practice need to be put in place to safeguard the business and individuals from misuse of information. [P5] Task 6 As you

Calculation of the Energy Contribution to a Sunspace

1633 words - 7 pages glazing with dark colour. Sheet 5 (Lbm-Lhm ) – Title: Thermal losses through the sunspace as a buffer space First table (title in column 1: losses from sunspace to the external environment) OPAQUE ELEMENTS Input parameters: Name of element Area [m2] U = thermal loss transmittance; default value = 0.34 TRANSPARENT ELEMENTS Input parameters: Name of element Area [m2] Uday = daily thermal loss transmittance; default

Scor Hospital

648 words - 3 pages   Plan Make P5  Plan Returns Deliver M1  Make‐to‐Stock D1  Deliver Stocked Products S2  Source MTO Products M2  Make‐to‐Order D2  Deliver MTO Products S3  Source ETO Products M3  Engineer‐to‐Order D3 Deliver ETO Products D4 Deliver Retail Products SR1  Source Return Defective Product DR1  Deliver Return Defective Product SR2  Source Return MRO Product DR2  Deliver Return MRO Product SR3  Source

Hr593 Paper

615 words - 3 pages Sexual Harrasment There are two types of harassment: quid pro quo and hostile environment sexual harassment. Based upon the scenario, Mrs. Murphy has a legally viable claim for both quid pro quo and hostile environment sexual harassment against Personal Connections Are Us, Inc. Quid pro quo harassment occurred when the manager Dwayne Miller told Mrs. Murphy to accompany him on a trip in which they would share a room. He offered

Comprehenive Analysis Outline

660 words - 3 pages Comprehensive Analysis Outline Team A: Jaime Borgarin, Julian Contreras, Ibeth Sanchez MGT/448 Global Buisness Strategies May 11, 2012 Professor Quinton Murphy I. Region Analysis A. Regional Alliances and Economic Integration 1. NAFTA 2. United States B. Physical Environment and its Affect on Trade 1. Close Proximity to the U.S. 2. Access

Unit 14 Brief

3868 words - 16 pages . This coverage could include outside speakers from both voluntary and private agencies and visits to care settings. Assignment 3: Care pathways and strategies for supporting the chosen disorders (P4, P5, M2, M3, D1, D2) Unit review and assessment. Edexcel BTEC Level 3 Nationals specification in Health and Social Care – Issue 1 – June 2010 © Edexcel Limited 2010 5 Assessment One assignment could form the basis of assessment for this unit

Dea Tutorial

3818 words - 16 pages to this set of units will identify units P1, P2, P3 and P4 as efficient and they provide an envelope round the entire data set units P5 and P6 are within this envelope and are inefficient. The data envelope has been notionally extended to the axes by the lines P1y2' and P4y1' to enclose the data set. For unit P5 the peer group consists of the units P1 and P2 and a set of targets for P5 is provided at P5'. These targets are obtained by a pro

Design Cost Planning and Control

3600 words - 15 pages of use. Signature/s of student ……………………………… Date of submission: ……………………… Below this line for office use only ………………………………………………………………………………………………………………………………………… School of the Built Environment Heriot-Watt University Edinburgh EH14 4AS Scotland UK Tel: 0131 449 5111 Fax: 0131 451 3161 Date Stamp Assignment: A high –level report, advising the client on the viability of the proposed project, a three storey Health Center, 4500 m2 Gross Floor

Business Environment Frontsheet 2

724 words - 3 pages in their market environment | 3.1 Explain how market structures determine the pricing and output decisions of businesses. | | | | | 3.2 Illustrate the way in which market forces shape organizational responses using a range of examples. | | | | | 3.3 Judge how the business and cultural environments shape the behaviour of a selected organization. | | | | | | | | | | | | Merit grades awarded | M1 | | M2 | | M3

Related Papers

11 – Safeguarding Adults & Promoting Independence

1014 words - 5 pages . | |A new member has been elected to the committee and has a meeting with you to find out more about the home and fostering scheme and how they are run. | | | |Task 2 (P5,M2

Hgchgfjhfjhgf Essay

1362 words - 6 pages |This provides evidence for P5, M2 | |Using diagrams, explain the ‘business cycle’ and how changes in the ‘business cycle’ affects firms |P5

Unit 9 Complete Booklet Essay

4423 words - 18 pages the development of a successful promotional campaign | 3 | P4 | explain the reasons behind the choice of media in a successful promotional campaign | 3 | P5 | design a promotional campaign for a given product/service to meet the needs of a given campaign/creative brief | 4 | M1 | explain how promotion is integrated with the rest of the marketing mix in a selected organisation to achieve its marketing aims and objectives | 2 | M2 | explain

Cambridge Tec Essay

4929 words - 20 pages development needs | 12 | Assessment Criteria P1, M1 | 13 | Assessment Criteria P2, P3, P4, D1 | 14 | Assessment Criteria P5, P6, M2, D2 | 15 | Assessment Criteria P7, P8, M3 | 16 | LO1 Understand the personal attributes valued by emp loyers | | 1.1 Personal Attributes | 18 | 1.2 Personal Attributes: Qualities | 19 | 1.3 Personal Attributes: Problem Solving | 20 | 1.4 Personal Attributes: Team | 21 | 1.5 Good worki ng practices | 22