Compare The Challenges Or Selected Business Activities Within Selected Organisation In Two Different Economic Environments

1078 words - 5 pages

M2 - Compare the challenges or selected business activities within selected organisation in two different economic environments
In this task I will compare the challenges to selected business activities in two different economic environments.
| Supply | Economic |
Waitrose | Availability of raw materials and labour – Waitrose are impacted by this because the less raw materials there are, the harder it is for them to meet the demand on products. Waitrose will increase the supply of a product depending on the demand of this, and the demand on the product could also influence the price.Logistics to produce products profitably – Waitrose are impacted by this as they would have to run ...view middle of the document...

Waitrose would also have to make redundancies to Level of inflation – this would impact Waitrose as they would have to increase the price of their products if inflation was to increase, this would mean Waitrose would have to increase their prices as they money would be worth less, and Waitrose would still want to profit off their goods.The Ripple effect – This would impact Waitrose as they would be forced to reduce the amount of luxury foods that they are producing as consumers are mainly buying necessities. Availability of credits and cost – This would impact Waitrose as they would be have to pay more for loans from the bank as the availability of loans became scarce. Labour – This would impact Waitrose as the lower rate of labourers will lower skills will make Waitrose have to pay higher training costs for labourers. Changes in government policy – This would impact Waitrose greatly as the fiscal policy will allow the government to lower taxes rates due to the recession, also the monetary policy could spur inflation, which will impact Waitrose, and so their prices must increase. |
Virgin Atlantic | Availability of raw materials and labour – This impacts Virgin as they are in need of constant raw materials and labour, their business runs mainly on these two things, if there is a low amount of raw materials prices will go up which would raise the prices for flights. If there was a low amount of labour available it would be difficult for them to expand their business as they would not be able to accommodate the needs for expansion. Logistics to produce products profitably – Virgin are impacted by this as they run flights constantly, they will have to run research onto the cost effective fuels such as biofuel and cost effective planes, this is quite expensive and is slow process but eventually will result in cheaper flight trips, which will increase their profit.Competition for raw materials – This impacts Virgin Atlantic greatly as their planes run on oil, due to developing countries having a bigger budget they will be able to get the oil faster and will pay at a higher price, Virgin want to get raw materials at a steady price and in steady...

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