Business Ethics
Unit 38 Assignment 1
P1 - Effects of changes in the economic environment on Burberry.
Year 2012 unemployment:
Unemployment level: As you can see from the graph the unemployment level has increased from 1.64 million in July 2007 to 2.59 million in July 2012, in five years the unemployment level has raised by nearly one million of unemployed people.
Inflation rate: The graph shows the inflation rate as you can see on October 2011 the inflation rate increased up to 5.2% which was the highest inflation rate, and in the past two years the lowest inflation rate was recorded in July 2012.
Trade deficit: The deficit in July totalled £1.5bn, compared with £4.3bn in June, the official figures showed.
Export of goods rose by 9%to £25.8bn while imports shed by 2.1% to £32.9bn. For services, export fell by 0.9% to £15.6bn while imports declined 0.4% to £10bn. Export prices of goods, non-seasonally adjusted, rose by 1.7% and import prices of goods rose by 1.2% compared with February.
In the three months ending August 2012, trade in goods and services was estimated to have been in deficit by £9.8 billion, compared with a deficit of £9.2 billion in the preceding three months.
Ref: http://www.egovmonitor.com/2012/10/10/uk-trade-deficit-increases-significantly-in-august-2012
Government debt: The UK national debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts.
Public sector net debt was £1,039.5 billion at the end of August 2012, equivalent to 66.1% of GDP.
Now I will explain how these four factors can affect Burberry.
The unemployment level can have massive impact on the Burberry’s income. It can be affected because if the unemployment rate will keep increasing this means that more people will be out of job and will have less money to spend which basically will affect the sales because people won’t be able to afford the Burberry’s goods. This is very important factor because this also means that
P1 - Effects of changes in the economic environment on Burberry.
Year 2012 unemployment:
Unemployment level: As you can see from the graph the unemployment level has increased from 1.64 million in July 2007 to 2.59 million in July 2012, in five years the unemployment level has raised by nearly one million of unemployed people.
Inflation rate: The graph shows the inflation rate as you can see on October 2011 the inflation rate increased up to 5.2% which was the highest inflation rate, and in the past two years the lowest inflation rate was recorded in July 2012.
Trade deficit: The deficit in July totalled £1.5bn, compared with £4.3bn in June, the official figures showed.
Export of goods rose by 9%to £25.8bn while imports shed by 2.1% to £32.9bn. For services, export fell by 0.9% to £15.6bn while imports declined 0.4% to £10bn. Export prices of goods, non-seasonally adjusted, rose by 1.7% and import prices of goods rose by 1.2% compared with February.
In the three months ending August 2012, trade in goods and services was estimated to have been in deficit by £9.8 billion, compared with a deficit of £9.2 billion in the preceding three months.
Ref: http://www.egovmonitor.com/2012/10/10/uk-trade-deficit-increases-significantly-in-august-2012
Government debt: The UK national debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts.
Public sector net debt was £1,039.5 billion at the end of August 2012, equivalent to 66.1% of GDP.
Now I will explain how these four factors can affect Burberry.
The unemployment level can have massive impact on the Burberry’s income. It can be affected because if the unemployment rate will keep increasing this means that more people will be out of job and will have less money to spend which basically will affect the sales because people won’t be able to afford the Burberry’s goods. This is very important factor because this also means that