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The Business Enviroment Unit 1 P1

In: Business and Management

Submitted By Shoaib95
Words 1174
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The Business Environment
In this assignment I am going to be explaining how the style of organisation fulfil their purposes, I am going to do this by defining the different business terms and how this affects the Business.
Business environment
Gross profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments.Net profit is the sales and revenue made over the net on the online database on how much sales the company had made also the taxes and profit they make from net profit. Dixons gross profit is increasing. As its annual report suggests they had made a lot of net sales and generated a lot of profit from it.
Recession is when the economy is at a low and most companies are at a crisis. This is when the company cannot always pay their taxes or stock on time and they will have to increase their profits above targets in order to stay stable during the recession period. The recession can impact Dixons Objectives by making them struggle in generating profit and customer satisfaction as Dixons will have to increase their prices on the products and force to make more sales which can bring unhappy customers to them in doing so. This affects their objectives by a lot.
Growth/Market share
Market share is the total purchases of a customer of a product or service from Dixons, what percentage goes to a company defines its market share. In other words, if consumers as a whole buy 200 laptops and 40 of which are from one company, that company holds 40% market share. Market share is a measure of the consumers' preference for a product over other similar products. Shares issued by a firm with a consistent record of above average earnings to Dixons. Such as the shares that are expected to trade at an increasing value over an extended period.

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