Device 1 P5

 Essay about Unit you P5

PRODUCT 1 The business Environment

P5 Know the effects of the economy on organization.

Draft/version: 2

Tutor: Meters. Popescu

Scholar: Luca Polak


Date: 18 January 2013


* Introductionpage(s): 3

2. Economic: page(s): 4 t/m 11

-Importance of stability;

-Impact in business of changes in theeconomic environment; -Levels of inflation;

-Availability and cost of credit;


-Changes in authorities policy.

5. Demand: page(s): 12 t/m 16

-Influenced by affordability;

-Competition accessibility to substitutes;

-Level of Gross Domestic Items;

- Requirements and aspirations of consumers.

2. Supply: page(s): 17 t/m 19

-Influenced by accessibility to rawmaterials and labour; -Logistics;

- Capacity to produce profitably;

-Competition pertaining to raw materials;

-Government supply.

5. Changes in source and demand: page(s): twenty t/m twenty two

-Supply and demand curves;

-Elasticity of demand;

-Price sensitivity;

-Influence of marketing of selling price sensitivity.

* Global interaction: page(s): 23 t/m twenty-four

-levels and type of interdependence.

* Conclusionpage(s): 25

5. Resourcespage(s): 21


For this report I have chosen two companies (one from P1 and one new) called Heineken and Sony. Heineken is a Nederlander multinational and Sony is known as a Japanese international. I am going to have a look at how diverse economic environment impact the two selected organizations. This report is targeted on the economics, demands, products, changes in demands en products and the global interaction.


* Need for stability:

Stability can be found when people can make prediction for the short and medium term about probably demand for their products in the near future. Balance involves being able to make deals secure in the knowledge that people you source to about credit will pay you backside at the value agreed. At the time you borrow money, you expect the monthly payments to be to get the agreed amounts.


Heineken is a PLC (NV), which means it is active on the currency markets. In the Holland the stocks and shares had a great performance. Holland Stock Market (AEX), produced 2 points or perhaps 0. 54.99 percent during the last 30 days. This has a really good effect for Heineken's business, because Heineken's stocks will execute very great on the stock Dutch market.

The economy of The netherlands is known because of its traditional emphasis on the secret of law and a powerful legal platform. Strong safety for home rights are provided by the judicial system, 3rd party and totally free of corruption.


Sony can be described as Plc also, which makes them active on the stock market. In Japan the stocks had a positive overall performance during the last month. The Asia Stock Market (NIKKEI 225), created 559 points or 6th. 32 percent during the last thirty days. This has a really good effect intended for Sony's organization, because Sony's stocks is going to perform extremely good for the stock Japanese people market.

Our economy in Japan benefits from comparatively good levels of economic freedom in all areas. The monetary freedom will be solidly set up a very low level of pumpiing, supported by a powerful judicial construction and the practically complete a shortage of corruption.

* Impact on the business enterprise of changes in the economic environment:

Growth takes place when even more goods happen to be being made and consumed, and earnings are rising.

Recession happens when people involved in the business become more cautious and customers cut back on spending, and begin to save more. Manufactures and sellers scale back on their instructions, produce fewer goods and begin to cut back costs in general, which includes by putting off employees.

The ripple effects is that customers are likely to spend significantly less, producers and sellers lessen in their stocks and options, production, costs including work and as even more people drop work incomes fall this leads to further cutbacks in customer spending.



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