Economics and Financial Management of Maplin
Added on 2021-01-01
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ECONOMIC AND FINANCIALMANAGEMENT
Table of Contents..........................................................................................................................................................2INTRODUCTION...........................................................................................................................31 Identification and evaluation of impact of economy on business organisation.......................32. Economic theory to a range of contemporary business contexts............................................43. Macro and micro economics forces on contemporary business .............................................5CONCLUSION ...............................................................................................................................6REFERENCES...............................................................................................................................7
INTRODUCTIONMicro and macro economics are two major categories of various factors of an economy.Micro economic factors covers a study of individual or group. On the other hand, the macroeconomic factors provides study of factors of whole nation. Maplin is a retail business of UK.that sales Electronics items through online sources. The present assignment shows a descriptionof reason by failure of Maplin by showing impact of economic factors over businessorganisation. It will provide impact of various economic theories and range and its applicationover business. Further, it would also show a brief analysis of numerous micro and macroeconomic forces on the contemporary business. 1 Identification and evaluation of impact of economy on business organisationEconomy plays the major role in business organisation as both are affected by the factorsof another. Economic factors may favourable or unfavourably affect the business organisation.There are may factors of economy which have direct impact on the MAPLIN.Some economic factors like impact of BREXIT, labour market, competition, inflation.Changing technology, and many other which have great and direct impact on the business ofMAPLIN organisation (Busch and Matthes, 2016). Major impact of BREXIT over the MAPLIN was it lost its major customers due toimplication of new rules over the business organisations about trading. Moreover, BREXIT alsoresulted in enhancement of cost due to incapability of business of as to trade with the manysuppliers. Due to BREXIT BREXIT resulted in a huge reduction in it's the export sales. Although, it developedvarious strategies like reduction of price of its electronic products, lowering the profit margin,etc. But these strategies failed to provide enough result to company that resulted in bringing theMAPLIN into the administrative stage. Further, inflation is also one of the key reason behind the failure of MAPLIN's business.Inflation in the UK resulted in lowering the spending capacity of the customers. It had a directimpact over the sales volume of MAPLIN organisation and over its profitability as well (Dhingraand et.al., 2016). Due to lack of sales, the company started suffering loss from the sales ofelectronic equipments due to which it caused in failure of business.
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