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Economic and Financial Management Assignment - Patisserie Valerie cafe

   

Added on  2020-11-12

7 Pages1919 Words134 Views
ECONOMIC ANDFINANCIAL MANAGEMENT

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Identifying and evaluating impact the economy on business organization........................12. Appraising and applying economic theory with range of contemporary business.............23. Analysing micro and macro economic forces on contemporary business.........................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5

INTRODUCTIONEconomic and financial management are associated in very close aspect where financialmanagement is laying special emphasis to manage funds for attaining business goals. Economicsis focussing on creation, transport and use of goods. The present report will discuss aboutPatisserie Valerie which is a cafe in UK had failed due to various factors. In the similar aspect, itwill determine and evaluate impact on economy on business organization. Further, it willappraise and apply economic theory with range of contemporary business and analysing microand macro economic forces.1. Identifying and evaluating impact the economy on business organizationIn the present scenario, UK had attained growth to be modest in year 2018 at 1.3% and in2019 at 1.6%. This will directly reflect the drag with context of business investment throughongoing political and economic uncertainty related to result of negotiations of Brexit. However,higher government spending along with short term cuts directly announced in budget and hadboosted with growth in year 2019. Economic growth was initiated in year 2018 on a weakfooting followed with slowdown in year 2017. Further, growth is expected for recouping slightlywithin second quarter but it remained lacklustre throughout the year. The UK has recouped itselffrom financial crisis but its growth was sluggish and dependent on attaining more people intowork instead of increasing productivity. There was 9.7% increase in size of economy ascompared to peak of pre-downturn and annually 2.3% change (The UK economy at a glance,2019).The GDP of UK had expanded through 0.6% in quarter July to September along with thebest quarterly growth over past 2 years. The strength in this Q3 attained growth and masks withloss in momentum of industrial production along with output services. Apart from this, there arevarious other factors such as uncertainty on basis of Brexit. Brexit had impacted currency andstock market on basis of trade position of UK and broaden economic relations. There are variouscompanies which had global presence and gained benefit through decrement in pound and itsoutcome in generating huge revenue when currency is converted into sterling. However, businesswho buy most of raw materials overseas have observed significant increment in cost. EasyJetcould face some extra cost of £90 million due to adverse movements in currency and retailerssuch as Burberry has produced 85% of sales abroad, has sharp increment in sales (Dan McCrum,2019). 1

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