M2 P4 Essay

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Unit 1 - Task 3 Assessment Criteria: P5 – Describe the influence of two contrasting economic environments on business activities within a selected organisation. M2 – compare the challenges to selected business activities within a selected organisation in two different economic environments Name of Organisation: Tesco Tesco Country operating in UK Spain Information on country Situation 1 Unemployment Unemployment Describe how the situation impacts upon business activities? The current number of people unemployed in the U.K is £2.2million which is 7.5%. All of this could affect Tesco in the U.K in many different ways. One impact on the business it could have is by people not having jobs they will earn less money and so this would mean that they would have lesson money to spend and so this could have an impact on the profits and amount of money Tesco make. Also with unemployment crime level rises which mean there could be an increase in thefts in the store which could also impact profits for the company. Along with higher crime rates there could be more damage to the stores and property which could create more costs and loss of money on repairing the damage. Despite these negatives it could also mean that Tesco could have more jobs to offer and so help get people out of unemployment and get employed by Tesco. The current number of unemployed people in Spain is £5.9million which is 26.7% this could impact the business in many ways similar to the U.K but this would likely be to a more extreme level due to the fact that unemployment level is 19.2% more in Spain than the U.K. This could result in Tesco selling and shutting down stores as they could be at risk of losing more money the longer they keep them if unemployment stays low because people will not have money to spend in the stores. On the other hand this could be good because it would mean there will be
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