you have learnt during induction for Level 4. 

make sure that you add your name to your Padlet post

Fermando  (2017) regards  business  environment as  external forces, factors and institutions that are beyond the control of the business [such as] competitors,  suppliers, distributors, industry  trends, regulations  government  activities etc 

Compare and contrast the 2 definitions

What is similar about each definition?

Remember to add your name to your Padlet post

•Apply Porters 5 Forces 

•Present your findings to the class on padlet

Please put the names of the people in your group onto padlet

2. A rise in birth rate

3.The bank of England increases interest rates

4. An increase in government spending on research and discovery

5. A tight restriction on mergers and take-overs

6. A shift in government transport policy towards public transport.

7. An increase in the price of fuel

8. An Increase in persuasive power of children

9. An increase in the number of pensioners

10. An increase in unemployment.

Please put your name onto your post

Demographics, Labor & Social mobility

7 An increase oil the price of fuel

Shell expects a significant boost in profits in its natural gas division, thanks to rising prices,
Shell profits rocketed by 53% to $84.3 billion dollars (£68.1 billion) in 2022 due to soaring oil prices.
Shell also announced its shareholders would get a 15% dividends payment increase and four billion dollars (£3.2 billion) worth of new share buyback options

Be prepared to say why you think your points are important

•The legal requirements of starting his business

•Advantages of having his own business

•The disadvantages of starting his own business. 

Add your answer to our Class Padlet and remember to put your name on your post

•Which form of business structure do you recommend?

•Give 3 reasons to justify your recommendation. 

Add your answers to our Class Padlet and add your name to your post

Explore the BBC website  and research any Business related news of the day and the week 

https://www.bbc.co.uk/ 

https://www.bbc.co.uk/news/business

Upload what you find onto our Class Padlet to share with the Class

The world’s oldest and largest broadcasting corporation. The BBC was established by a royal charter and is funded by a government-approved licence fee. The BBC offers graduates training in business, technology, journalism and production via its new talent schemes.


1.Covid-19 has had a substantial impact on the BBC’s ability to produce programmes and services. Following advice from the WHO, public health organisations and the Government, the BBC closed the production of many programmes and services across its TV and radio output. The cancellation of key broadcasting events, ceasing of productions, and changes to schedules will continue to have an impact on what audiences see and hear across the BBC across the coming months.
2. Like other organisations continuing to operate during this crisis, the BBC has faced operational challenges. We’ve experienced reduced levels of staffing and the huge increase in demand for the BBC’s internal network as over 15,000 colleagues work from home. For those unable to work from home, safety is paramount and we’ve followed Government advice.
3. The BBC Board took the decision to delay changes to the over-75s licence fee from 1 June to 1 August during an unprecedented time. The decision is to be kept under review.
4. In response to Covid-19, the BBC took swift action at the start of the pandemic to repurpose our services and programmes for the benefit of all audiences ensuring we kept the nation informed, educated and entertained.
5. The BBC enhanced our core role to bring trusted news and information to audiences in the UK and around the world in a fast-moving situation, and to counter confusion and misinformation. Prioritising the Government’s daily Coronavirus briefing and news programming in the BBC One schedules as well as enhancing our Reality Check service for the Covid-19 pandemic.
6. The BBC has delivered its biggest push on education in its history – ensuring that every child in the UK has the opportunity to continue to follow the appropriate core parts of their nation’s school curriculum in these challenging times. BBC Bitesize has rapidly expanded to bring 14 weeks of learning to bring nation specific curriculum-led activities to the BBC Red Button, BBC iPlayer, BBC Sounds, BBC Four, online and via social media.
7. We’ve adapted new programmes virtually and bolstered BBC iPlayer and Sounds to provide entertainment and escapism as well as bringing the nations, regions and diverse communities of the UK together with standout moments to come together such as The Big Night In

10. Andrew L. Friedman and Samantha Miles (2006). Stakeholders : Theory and Practice. [online] EBSCOhost. Oxford: OUP Oxford. Available at: https://web.s.ebscohost.com/ehost/detail/detail?vid=1&sid=17716991-f071-4906-9247-15123d8e6423%40redis&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=201128&db=e020mww

Temporary price drops and multi-buy offers on the unhealthiest foods will also be banned in the proposals put forward by the Welsh government.

The price of goods continues to grow but not as steeply as in recent months, according to the latest figures.

Food inflation reached 14.6% in June, the British Retail Consortium said.

That is down from 15.4% in the year to May, but it does not mean prices are falling, just that they are rising at a slower pace.

British Retail Consortium chief executive Helen Dickinson said: "If the current situation continues, food inflation should drop to single digits later this year."

However, food prices remain a key reason why the overall rate of inflation in the UK remains stubbornly high.

Group 1. Recruitment Agencies-http://news.bbc.co.uk/1/hi/business/8282073.stm 

Group 2. Banks-RBS-https://www.independent.co.uk/news/business/news/rbs-fined-163286m-for-price-collusion-1931571.html 

Group 3. Supermarkets agree milk price-http://news.bbc.co.uk/1/hi/business/7132108.stm

Group 4. Construction firms- https://www.theguardian.com/business/2009/sep/22/oft-fines-building-bid-rigging

Group 5. British Airways price-fixing scandal-http://news.bbc.co.uk/1/hi/business/6925397.stm

https://www.gov.uk/government/organisations/competition-and-markets-authority/about 
 

Rules about cartels cover:

-price fixing

-bid rigging

-sharing markets or customers

-sharing commercially sensitive information

An agreement does not have to be in writing for it to be illegal. You can break the law if you have an informal conversation (or ‘gentleman’s agreement’) with another business, even if the agreement is not carried out.
 
Price fixing 
You must not discuss the prices you’re going to charge your customers with your competitors.

Bid rigging 
You cannot discuss bids for a contract tender with your competitors.

Market sharing 
You cannot agree with other businesses to share markets or customers. You’ll be breaking competition law if you agree with another business
 
Sharing information 
You cannot share information with other businesses that might reduce competition between you

You must avoid other activities that break competition law, examples:

-buying or selling jointly with your competitors

-agreeing with your competitors to reduce production of something to raise its market value

-restricting how much other businesses can sell your product for

-agreeing with your competitors not to sell to certain customers or deal with certain suppliers

-having long-term exclusive contracts with any customers or suppliers

It followed a decision by the UK's Office of Fair Trading to fine BA £121.5m, after it held illegal talks with rival Virgin Atlantic.

BBC business editor Robert Peston said that the collusion between BA and Virgin Atlantic was "as blatant a breach of competition law as it's possible to imagine".

They agreed to boycott Parc UK, a company set up specifically as an intermediary between building companies and recruitment agencies, which was putting pressure on the fees charged by the established recruiters

Increases in milk prices through 2022 were pushed through faster than under normal circumstances, triggered by the unprecedented rise in farm input costs and the threat of milk shortages.

Supermarket firms Sainsbury's and Asda have admitted that they were part of a dairy price-fixing group.

Supermarkets are often accused by smaller retailers of squeezing them out of business. Last month, unveiling provisional findings of a 17-month inquiry into the £123bn grocery market, the Competition Commission ruled that big supermarkets were not competing effectively in many parts .

2. February 2019: EU raids Salmon farmers in Scotland in price-fixing inquiry

3. November 2018: CMA launches market investigation into pricing in the UK funeral industry.

4. CMA fines three building firms £36 M for price fixing (FP McCann, Stanton Bonna, and CPM Group). CMA finds that between July 2006 and March 2013 they agreed to fix or coordinate their prices, shared the market by allocating customers and regularly exchanged competitively sensitive information.

•The impact of Covid

•The impact of Brexit

•Apply Pestel and Porter

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8014102/

1.Find a newspaper article on the UK economy that interests your group. 

Give the title and date

2. Summarise the main points of the article in your own words. (3-5 bullet points or sentences)

3. State the purpose of the article: (entertain, inform, persuade,  examine/explore an issue, report)

4.Quote 3 words from the article that are unfamiliar to you. 

Look up and provide their definitions from a dictionary or www.dictionary.com

5. Add your findings to our class padlet

                                                                    

Give a small description of what you find on the Class Padlet

 

This was an increase from a quarter (25%) in June 2022.
My self finding hard to afford to pay the rent

Trade in goods and services across the UK's international borders, including total imports and exports, the types of goods and services traded and general trends in international trade.

Main points

3
Inform/report/examine an issue 
4 

•UK gross domestic product (GDP) grew by just 0.1% over the quarter and by 0.2% over the year.

•However, growth was not seen across all sectors. Manufacturing and services expanded while retail and construction saw reduced activity.


Economic Index; Definition: In statistics, economics, and finance, an index is a statistical measure of change in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment.

Camelia

Increasing revenue

Reducing cost

Encouraging innovation

Supporting workforce readiness

Providing direct capital injections through investments, loans and grants.

Injecting capital into the banking system to spur investment.

Increasing activity through public–private partnership structures.

Attracting incoming foreign direct investment (FDI) and stemming the loss of outgoing FDI.

Example 
The Growth Plan makes good the government’s commitment to cut taxes for people and businesses. The government will cut National Insurance contributions from November and cancel the Health and Social Care Levy and next year’s planned rise in Corporation Tax, keeping it at a competitive rate of 19%.

The government is going further to deliver tax cuts. From 23 September the threshold from which Stamp Duty Land Tax (SDLT) must be paid will be doubled to £250,000 for all home purchases. The threshold at which first-time buyers begin to pay SDLT will increase from £300,000 to £425,000, and the maximum value of a property on which first-time buyers’ relief can be claimed will also increase from £500,000 to £625,000.

•Stable low inflation - the Government’s inflation target is 2.0% for the consumer price index.

•Sustainable growth – growth of real gross domestic product – sustainable in keeping inflation low and reducing the environmental impact of growth.

•Improvements in productivity – this is designed to improve competitiveness and global trade performance

•High employment - the government wants to achieve an increase employment and eventually a situation where all those able and available can find meaningful work

•Rising living standards and a fall in relative poverty – cutting child poverty and reducing pensioner poverty.
•Sound government finances - including control over state borrowing and the total national debt

What images spring to mind when you hear the word ‘globalisation’?

Add these images to our Class Padlet

1.Find a journal article by typing key words into Google Scholar and use skimming/scanning and intensive reading skills to provide at least 5 bullet points  that summarise the main points of the article

2.Make sure that you provide a Harvard reference

3.Add what you find to our Class Padlet

Here are four ways that globalization has had a positive impact on the world economy:
1. More efficient markets
If you can improve the way you produce a good or service by doing things such as outsourcing certain processes or buying from an overseas supplier that offers discounts, you can then afford to lower your selling price which results in increased demand and affordability.

2. Increased competition
Anytime that you have multiple producers competing for a hold of the economy, that’s a good sign for consumers, as the quality of goods and services often goes up as a result.

3.Stabilized security
When your economy depends largely on another country’s economy, it is hard to imagine either one of the countries attacking the other. In a weird sort of way, globalization helped heighten world security.

4.More wealth equality throughout the world
Although many Americans contend that their standard of living has gone down because of globalization, the flip side to this is that hundreds of thousands of people around the world now have jobs, have started their own businesses and can provide comfort for their families.

However, globalization has also brought about some negative impacts. One of the main downsides is the increase in income inequality, as the benefits of globalization have not been evenly distributed among people. Additionally, globalization has led to environmental degradation, as the production and consumption of goods and services has become more widespread. Moreover, globalization has allowed for the spread of harmful practices, such as child labor, slavery, and unethical production methods, which have led to human rights violations and exploitation.

In conclusion, globalization has brought about both positive and negative impacts on goods and services. While it has increased access to goods and services and led to greater economic growth, it has also led to an increase in income inequality, environmental degradation, and the spread of harmful practices. It is crucial to address these negative impacts and work towards a more sustainable and equitable globalization.

Examples of these types of services are software production, motion picture production and distribution, and many financial services. When this is observed, by necessity some services must be consumed in a different location than where they are produced.
Good examples of cultural globalization are, for instance, the trading of commodities such as coffee or avocados. Coffee is said to be originally from Ethiopia and consumed in the Arabid region. Nonetheless, due to commercial trades after the 11th century, it is nowadays known as a globally consumed commodity.

The need for weather forecasting is consistent across the countries of the world. AccuWeather is recognized as the provider of the world's most accurate weather forecasts and it operates globally, nationally, and locally.

Part of AccuWeather's global strategy involves partnerships with local and national organizations. For example, the company recently partnered with the US Major Arena Soccer League to provide weather forecasts for events. This continued approach to partnerships keeps AccuWeather's focus on local engagement even for such a highly global company.

important for distribution companies. Contrary to other sectors, the economic crisis does not generate notable disturbances on the cosmetic market.

clarins case study 

However, on the other hand, Macdonalds takes a different approach as it "remains an obviously foreign establishment in the cityscape." https://daily.jstor.org/fast-and-pluribus-impacts-of-a-globalizing-mcdonalds/

Based on  the knowledge of macroeconomic you have learnt in this module, suggest to the UK government fiscal, monetary and/or supply side policies in order to reduce inflation and report the findings to the whole class

10 mins mind mapping

5 minutes plenary discussion 

The Bank of England has taken steps to control inflation by raising interest rates, and the government’s Energy Price Guarantee (EPG) has reduced energy bills for millions, keeping inflation lower than it otherwise would be. The Office for Budget Responsibility (OBR) is now forecasting that Consumer Price Index (CPI) inflation will fall to 2.9% by the end of 2023.

To further support households with the cost of living, the government is maintaining the EPG at £2,500 for a further three months from April 2023. The government will also align charges for comparable direct debit and Pre-Payment Meter (PPMs) customers, ensuring that those on PPMs no longer pay a premium for their energy costs.

In a situation of high inflation, monetary policy can have a key role to play. The standard response of a central bank would be to raise official interest rates. This is an example of a contractionary or deflationary policy. Higher interest rates reduce aggregate demand, leading to a slower rate of economic growth and (eventually) lower demand-pull inflation. For example, higher interest rates might makes mortgages on property more expensive to service which has the effect of dampening down the rate of growth of house prices via a fall in housing demand. 

A period of higher relative interest rates also causes an appreciation of the exchange rate which has the effect of reducing the price of imports and making exports more expensive.

Higher interest rates squeeze aggregate demand and can help reduce the size of a positive output gap. As part of monetary policy, the central bank might also Introduce a lower inflation target: Many countries have an inflation target (e.g. UK CPI inflation target of 2%). One argument in support of this is that if consumer and businesses believe the inflation target is credible, then it will help to lower inflation expectations. And if inflation expectations are reduced, it becomes easier to control inflation because fewer people will be asking for hefty wage increases.

In some countries, retail prices are kept artificially high because of the effects of import tariffs and import quotas. One policy option for a government might involve gradually lower import tariffs, perhaps as part of a wider trade agreement with other countries. A smaller tariff could have the effect of reducing import prices leading to an outward shift of short run aggregate supply. The costs of imported raw materials, component parts and finished consumer goods fall leading to a deflationary effect on the general price level. This might be shown in an analysis diagram by an outward shift of short run aggregate supply.

A potential downside of this approach is that domestic firms would then face tougher price competition from overseas suppliers and there might be a contraction in home-based production, employment and investment. The government would also be giving up some tax revenues from import tariffs which for a number of emerging/developing countries can be a significant source of tax income. Reducing trade frictions can be an effective policy to bring down the rate of inflation although domestic businesses would need to increase their efficiency to be able to compete with cheaper goods and services from overseas.

Supply-side policies are measures designed to increase the competitiveness and efficiency of the economy, putting downward pressure on long-term costs and therefore helping to control inflation. These policies might include government tax relief for business investment and also state funding to fast-forward major infrastructure projects in sectors such as transport, energy and power supply, telecoms and health care. Ultimately, if supply-side policies provide successful, then more new firms will enter markets (increasing industry supply and driving down prices) and labour productivity will increase helping to control the unit costs of businesses so that fewer of them are under pressure to raise prices. Effective supply-side policies lead to an outward shift of the long-run aggregate supply curve and help provide the conditions for a period of non-inflationary growth. However, they are unlikely to have much effect on the rate of inflation in the short term. In this sense, monetary policy has a more important role to play in controlling price increases.

Monetary policy in some countries is also accompanied by a policy of wage controls or wage freezes. Trying to control wages could, in theory, help to reduce inflationary pressures. In the UK, the UK government has in recent years operated with a public sector pay policy that has limited annual pay rises for several million workers to just 1 percent a year - this has meant that nominal wages have failed to keep pace with inflation leading to a steep fall in real wages and also relative pay compared to many private sector jobs.