P5 Describe the Influence of 2 Contrasting Economics Environments on Business Activities Within a Selected Organisation
In this task I will be talking about two contrasting economic environments on business activities for Harris Academy Peckham and Peckham. The economic environments will be recession, demand and supply.
Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much of a product or service is desired by product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and how much of a good or service is supplied to …show more content…
Recession of Harris Academy at Peckham
A recession is when there broad reduction in the national income which includes wages, salaries, interest and profits. The UK is currently in a recession so it should be quite easy to see the affect it will have HAP, however most of the public sector cuts, including those in education, have not yet taken full effect, but will do in the coming year.
Peckham is an area that most people will view as deprives, this will have an effect on some of the students that attend HAP. This means that many people are out of work and claiming benefits. People who are dependent on benefits may have to go and find work, because the government have already starting cutting benefits in many areas of the UK. Work will be hard to find for people who get their benefits cut, because of the current economic environment in the UK.
The likely affect will be that people who attend HAP won’t be able to buy resources at home to help with their education. Their parents may not have enough food to feed them properly, which will lead their children to learn to their full potential due to lack of food which is vital for learning children. This may badly affect Harris