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Assignmant 1 Unit 38 Business Level P1,D1

In: Business and Management

Submitted By natalie1996
Words 4004
Pages 17
P1 – Explain the effects of changes in the economic environment on a selected business.
D1 – Evaluate the impact of changes in the economic environment on a selected business
In this part of the assignment I am going to be researching the economic factors of Barclays as a business.
The Business cycle
All of these factors have an enormous impact on my selected business (Barclays) as the economy goes from growth and decline. As well as many others, Barclays is majorly affected as it is in the financial industry. These different factors appear throughout what is called the ‘Business Cycle’. The cycle shows the fluctuation of the activity within the economy over a period of time and consists of 4 main stages; as well as many others, Barclays as a business is majorly affected as it operates in the financial industry. These different factors appear throughout what is called the ‘Business Cycle’ and also known as the ‘Economic Cycle.’ The cycle shows the fluctuation of the activity within the economy over a period of time and consists of 4 main stages; Growth, slowdown, Recession and Recovery as shown below:

Supply and demand and GDP (gross domestic product)
'Gross Domestic Product - GDP' the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis.
Forces of demand and supply interact to create a market place. This is for many different reasons, for example:
Factors that influence demand: * Affordability * Competition and available substitutes * Level of income - GDP * Needs and aspirations of consumers
When demand increases businesses usually try to supply more. How easy this is depends on: * Availability of raw materials * Logistics * Ability to produce profitably * Competition for raw materials * Government...

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