Influences of Macro-economic Activity on Virgin Holidays

Business Management
BMP4003 Business Environment
Assessment 2
Influences of Macro-economic Activity
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Table of Content
Introduction..............................................................................................................................1
Main Body.................................................................................................................................1
Conclusion.................................................................................................................................5
References.................................................................................................................................6
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Introduction
Business environment involves all those factors that impacts operations of a company
as well as includes competitors, customers, suppliers, stakeholders, regulations other
government activities, industry trends, technological developments along with the social or
economic factors (Betti and Sarens, 2020) . In the following report, selected company is
Virgin Holidays from Virgin Group that provide provides holidays service across the world
along with the destinations in US and Canada, the Middle East, the Caribbean, Africa, the
Indian Ocean and the Far East. The report covers an ability to investigate as well as
explaining how economic factors can affects business activities. It further covers challenges
facing business in a global economy.
Main Body
An explanation of two macro-economic factors that the chosen business will
need to consider and the influences these could have on its business outputs
(macro-economic factors e.g., economic output, unemployment rates,
inflation etc.)
Macro-economic factors refer to as broad indicators related to financial decline or
growth that affects the economy of a country. It can also describe as environmental,
economic or geopolitical event that can affects the monetary stability of an economy. There
are many factors that affect an economy such as interest rate, inflation, fiscal policy, inflation
rate, economic output, unemployment rates and many more (Cook and Davíðsdóttir, 2021).
These have direct impact on the demand of product and service of the organisation and
profitability of the company. Virgin Holidays is the organisation that provides holiday’s
service to their potential customers in many destinations of different countries. Because of
this, macro-economic factors of different countries affect the overall business output of the
company. This makes important for the management of Virgin Holidays to consider all these
factors while providing their holiday’s service to their customers as they also affects their
business growth. The two major macro-economic factors that affect its business are described
below:
Inflation- It refers to an increase in the average cost of product and service in a
certain period of time. Inflation that arise rapid manner can help in measure the economic
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