The economic environment of a business is of great importance as it has a major impact on determining the success or failure of the business. It consists of external factors in a business market and the broader economy that can influence a business. External factors act as an external restraint on business meaning one has less, or no control over these factors.
Macro -economic factors are wider factors that affect the whole economy, the business and stakeholders. Examples of Macroeconomic factors include:
Taxes
Savings rates
Interest rates
Consumer discretionary income
Recession
Unemployment rate
Depression
Currency exchange rates
Micro-economic factors are economic factors that affect the decision making of the business, however this are …show more content…
These cuts have led to staff shortages putting the safety of patients at risk. Nice guideline, its policy states that a nurse should not have over 8 patients however this policy can sometimes be failed to be achieved, as the NHS is currently required to operate under a strict budget whilst not having sufficient staff, and being restricted from using agency staff.
: Political Factors affecting KFC and analysis of how this factors affect the 2 organisations
This year the new government proposed a New Living Wage for people over the age of 25. The law requires companies to raise their employees’ wages from the standard £6.50 minimum wage to £7.20 which is expected to rise to £9 by 2020. This means this means KFC might have to cut down on staff that are under 25 in order, possibly some jobs will be lost or less people will be recruited, as the living wage might affect profits.
The proposed cut back on Tax credits is likely to affect KFC sales revenues from low income earners who are on tax
Macro -economic factors are wider factors that affect the whole economy, the business and stakeholders. Examples of Macroeconomic factors include:
Taxes
Savings rates
Interest rates
Consumer discretionary income
Recession
Unemployment rate
Depression
Currency exchange rates
Micro-economic factors are economic factors that affect the decision making of the business, however this are …show more content…
These cuts have led to staff shortages putting the safety of patients at risk. Nice guideline, its policy states that a nurse should not have over 8 patients however this policy can sometimes be failed to be achieved, as the NHS is currently required to operate under a strict budget whilst not having sufficient staff, and being restricted from using agency staff.
: Political Factors affecting KFC and analysis of how this factors affect the 2 organisations
This year the new government proposed a New Living Wage for people over the age of 25. The law requires companies to raise their employees’ wages from the standard £6.50 minimum wage to £7.20 which is expected to rise to £9 by 2020. This means this means KFC might have to cut down on staff that are under 25 in order, possibly some jobs will be lost or less people will be recruited, as the living wage might affect profits.
The proposed cut back on Tax credits is likely to affect KFC sales revenues from low income earners who are on tax