AS BTEC Level 3 Unit 1 p5 M1 
P5
There are many economic factors that could affect a business; these factors could also affect the stakeholders. A recession and a growth business will be affected, the stakeholders affected would be customers, suppliers, employees and consumers.
Inflation is a persistent increase in the general price level of goods and sevices in an economy over a period of time. When the general price level rises, each amount products bought from the store decreases as the rate of the product is too high. Since June 2013 the annual inflation in the UK rose and figures coming up to 1.8% in April 2014. These were offset by an overall fall in food and clothing prices. This affected Marks & Spencers (M&S) enormously as money increased for transport costs, notable air fares, sea fares and no profit as all the products were too highly priced. This resulted to a 3.9% fall underlying annual profits to £623m in their final year result in March 2014.
The consumer of Marks & Spencers would be affected during the recession because there’s less money for them to spend in the store therefore they spend less and try to save more but also the worth of the money would have dramatically dropped. The customers of M&S would be still affected during growth inflation however the company will still be gaining profit from them. The company still gains profit as the consumer would spend more money but the prize of the product would still go up however the value of the money stays the same so Marks and Spencers would be still making profit compared to before.
During a recession inflation would affect Marks & Spencers suppliers because of machinery and wages of people making the goods would need to be higher so then the supplier would have to sell the good at a much higher rate to gain some profit but also to satisfy the price of the worker and machinery needed to make the products. During a growth inflation the suppliers for Marks and Spencers would be also affected in another way as the
There are many economic factors that could affect a business; these factors could also affect the stakeholders. A recession and a growth business will be affected, the stakeholders affected would be customers, suppliers, employees and consumers.
Inflation is a persistent increase in the general price level of goods and sevices in an economy over a period of time. When the general price level rises, each amount products bought from the store decreases as the rate of the product is too high. Since June 2013 the annual inflation in the UK rose and figures coming up to 1.8% in April 2014. These were offset by an overall fall in food and clothing prices. This affected Marks & Spencers (M&S) enormously as money increased for transport costs, notable air fares, sea fares and no profit as all the products were too highly priced. This resulted to a 3.9% fall underlying annual profits to £623m in their final year result in March 2014.
The consumer of Marks & Spencers would be affected during the recession because there’s less money for them to spend in the store therefore they spend less and try to save more but also the worth of the money would have dramatically dropped. The customers of M&S would be still affected during growth inflation however the company will still be gaining profit from them. The company still gains profit as the consumer would spend more money but the prize of the product would still go up however the value of the money stays the same so Marks and Spencers would be still making profit compared to before.
During a recession inflation would affect Marks & Spencers suppliers because of machinery and wages of people making the goods would need to be higher so then the supplier would have to sell the good at a much higher rate to gain some profit but also to satisfy the price of the worker and machinery needed to make the products. During a growth inflation the suppliers for Marks and Spencers would be also affected in another way as the