Unit 1 P5

UNIT 1 The business Environment

P5 Know the impact of the economic environment on business.
Draft/version: 2

Tutor: M. Popescu

Student: Luca Polak
Class: IBS 1B
Date: 18 January 2013

INDEX

* Introduction page(s): 3

* Economic: page(s): 4 t/m 11
- Importance of stability;
- Impact on business of changes in the economic environment;
- Levels of inflation;
- Availability and cost of credit;
- Labour;
- Changes in government policy.

* Demand: page(s): 12 t/m 16
- Influenced by affordability;
- Competition availability of substitutes;
- Level of Gross Domestic Products;
- Needs and aspirations of consumers.

* Supply: page(s): 17 t/m 19
- Influenced by availability of raw materials and labour;
- Logistics;
- Ability to produce profitably;
- Competition for raw materials;
- Government supply.

* Changes in supply and demand: page(s): 20 t/m 22
- Supply and demand curves;
- Elasticity of demand;
- Price sensitivity;
- Influence of branding of price sensitivity.

* Global interaction: page(s): 23 t/m 24
- levels and type of interdependence.

* Conclusion page(s): 25

* Resources page(s): 26

Introduction

For this report I have chosen two companies (one from P1 and one new) named Heineken and Sony. Heineken is a Dutch multinational and Sony is a Japanese multinational. I am going to take a look at how different economic environment affect the two selected organizations. This report is focused on the economics, demands, supplies, changes in demands en supplies and the global interaction.

Economic

* Importance of stability:

Stability exist when business people can make forecast for the short and medium term about likely demand for their products in the near future. Stability involves being able to make deals secure in the knowledge that people you supply to on credit will pay you back at the price agreed. When you borrow money,