Inflation
general rise in price in economy over time
L of inflation
inc cost
High loan repayment
Consumer price index
measure monthly change in price of goods and compare them to earlier periods to calculate rate of inflation
Retail price index
calculates % change in cost of a basket of retail goods
Exchange rate
value of one currency expressed in terms of another
Appreciation
inc in value of the pound against other currency
SPICED
L of appreciation
more foreign comp
Depreciation
dec in value of pound against other currency
WPIDEC
Intrest rate
% reward for saving
% changed for borrowing
Tax
money gov collect from people and bus to benefit nation
Direct tax
party -> gov
Indirect tax
payor -> supplier -> gov (VAT)
S and L of an increase in tax
S- tax contribute to economic stability so good environment for growth
L- less disposable income as rev decrease and higher operational cost
Expansion
Peak/boom
Recession
Trough
E- inc econcomic activity
P- sales and production max
R- econcomic growth dec consumer spending dec
T-econcomic activity and GDP at lowest
Econcomic uncertainty
hard to forecast level of supply and demand in econcomy So cant plan
Legislation
Law passed that requires bus to conduct beh in certain way
Consumer protection
treat fair and not mislead
S and L of consumer protection
S- inc profit
L- spenny
Employee protection
prevents exploitation, fair pay and working conditions
S and L of employee protection
S- inc motivation and productivity
L- safety equipment and breaks are spenny
Environmental law
position
Air quality
Competition policy law
restrict front competitive practicxes
(Abusing market power and cartel activity- bus work together to manipulate market)
Porters 5 factors affecting competition
-threat of substitute prods
-new entrants
-bargaining power of supplier
-bargaining power of buyer
S and L of an increase in competition
S- inc innovation and expand product range
L- inc promotion costs
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2.1.1 Internal finance6
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2.1.2 External finance9
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2.1.3 Liability9
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2.1.4 Planning11
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2.2 formulas9
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2.2.1 Sales forecasting19
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2.2.2 Sales, revenue and cost8
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2.2.3 Break even15
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2.2.4 Budgets14
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2.3.1 Profit27
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2.3.2 Liquidity25
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2.3.3 Business Failure10
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2.4.1 Production, productivity and efficiency28
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2.4.2 Capacity utilisation18
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2.4.3 Stock control14
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2.4.4 Quality management16
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2.5.1 Economic influences40
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2.5.2 Legislation19
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2.5.3 Competitive environment13
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2.1+ 2.2 KEY TERMS26
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2.3 KEY TERMS12
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2.4 KEY TERMS34
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2.5 KEY TERMS30
