THE ECONOMIC & BUSINESS ENVIRONMENT

The Economic & Business Environment

[Name of the Instiution]

[Date of Submission]

Introduction3

Discussion3

Task 1: Impact of Economic Change on a Selected Business3

1.1 The Business Cycle & Reasons for Fluctuations in the Cycle3

1.2 The Aims of Government Policy in Managing the Business Cycle4

1.3 The Reconciliation of the Aims of Government Policy5

1.4 The Changes in the Business Cycle and its Impact on the Selected Business5

1.5 The Range of Government Policies and its Impact on the Selected Business6

1.6 Specific Government Policies and its Impact on the Selected Business6

Task 2: The Role of Government Spending in the Economy and its Impact on the Selected Business7

2.1 The Trends and Size of Government Spending7

2.2 The Nature of Government Spending7

2.3 The Importance of Government Spending to Communities and Business8

2.4 The Multiplier Effect of Government Spending in Light of Local and National Examples9

2.5 The Role of Private Finance Initiatives9

Task 3: Monetary and Fiscal Factors10

3.1 The Fiscal Policy and its Components10

3.2 The Role of Fiscal Policy11

3.3 The Need to Raise Revenue to Fund Expenditure11

3.4 The Importance of Deficit Financing12

3.5 The Budgetary Process12

3.6 The Monetary Policy and its Components13

Conclusion13

The Economic & Business Environment

Introduction

The national organisation which I have selected to carry out this assignment is 'Burberry'. With outwear t its core, Burberry remains quintessentially British and was founded in the year of 1865. The management of the business is underpinned by the products and regions, balance and constant evolution across channels and discipline execution. The consistent performance of the organisation is driven by the dynamic retail strategies, digital marketing initiatives and innovative product design (Moore & Birtwistle, 2004, pp. 412). Inspire, explore and protect, are the core values of the company, united by a pure brand vision and open communication and through socially responsible initiatives and the Burberry Foundation, the compassionate global teams of the company are given back to their communities.

To ensure profitable and sustainable growth, the company leverages its talented team and proven strategies. This assignment will address the impact the UK competition and business is affected by the international economy, the effects of monetary and fiscal policies on spending, the impacts of government spending on business and the impact on businesses of change in the economic factors. These factors will be outlined in relational to the selected national organisation, i.e. Burberry.

Discussion

Task 1: Impact of Economic Change on a Selected Business

1.1 The Business Cycle & Reasons for Fluctuations in the Cycle

The occurrence of fluctuations experienced by the economy over time resulting from changes in economic growth comprises of a business cycle. The changes in the demand-side of the economy as measured by GDP is described by the business cycle. The economy-wide fluctuations in economic, trade and production activity in general over several years or months in an economy organized on free-enterprise principles, is known as, the economic or business cycle (Christiano & Eichenbaum, 1992, pp. 430). Decline (a recession or contraction) or periods of relative stagnation and shifts over time between periods of relatively rapid economic growth (a boom or expansion) are the reasons due to which ...