Influences of Macro-economic Activity on Business Management

This article discusses the macro-economic factors that influence business outputs, such as inflation and monetary policy. It also explains how the UK's current growth rate impacts the chosen business and how government intervention methods affect it. Additionally, it covers the global challenges faced by the business and provides recommendations to overcome them.

Business Management
BMP4003 Business Environment
Assessment 2
Influences of Macro-economic
Activity
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Contents
Introduction p
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.) p
How will the UK current growth rate impact on the chosen business
(give reference to economic life cycle, GDP, inflation,
unemployment rate) p
How can the government current intervention methods affect the
selected busines? (e.g., fiscal and monetary policies, furlough
scheme etc) p
What are the current global challenges facing by the chosen
business and recommendations on how to overcome them in this
current time? p
Conclusion p
References p
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Introduction
Macro-economics is observer of key monetary elements which effect at the improvement of
the country. It is vital for the economic system to think about improvement of macro-
monetary elements in an effort to broaden centered approach. All most important groups
within side the economic system need to awareness on analyzing the macro-monetary
elements in a first-rate experience in an effort to growth power of key operations. The macro-
monetary elements additionally allow a rustic to awareness on move of cash deliver to assess
key monetary perspectives. This mission will cowl most important macro-monetary elements
which need to be doing not forget via way of means of an enterprise in an effort to growth the
outputs (Davidson and Forsythe, 2020). The mission will consist of number one awareness on
contemporary increase fee of United Kingdom via way of means of explaining gross home
product, monetary existence cycle and unemployment fee. The mission may also cowl the
government's contemporary intervention strategies that may effect on enterprise organization.
In this mission instance of Virgin Atlantic Airlines is considered that is a multinational
British Airline employer. The employer become based with inside the year 1984 and it's miles
based in London, United Kingdom.
TASK
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.)
The macro-monetary elements play a considerable function in improvement of the entire
corporation. Management of Virgin Atlantic Airlines Corporation must basically recognition
on analyzing macro-monetary elements with the intention to serve the clients and personnel
in a particular manner (Boojihawon and Ngoasong, 2018). The key macro-monetary elements
that are to be taken into consideration with the aid of using Virgin Atlantic Airlines
Corporation which effect on its commercial enterprise outputs are noted below:
Inflation- The inflation quotes is one of the principal macro-monetary elements which effect
at the functioning of a corporation. It is crucial for the studies and improvement branch of
Virgin Atlantic Airlines Corporation to recognition on inflation quotes. It will assist and
guide the corporation to expand a scientific method in determining the expenses of its
merchandise and services. The inflation quotes of a financial system additionally affects at
the cash deliver and shopping energy of the clients (Ersoy-Babula and Babula, 2018). The
inflation quotes are crucial to be decided with the aid of using the commercial enterprise with
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the intention to expand centered method in dealing with key elements of commercial
enterprise boom and expansion.
Monetary coverage- In the improvement of a corporation, economic coverage performs a
key function with the aid of using controlling cash deliver. Virgin Atlantic Airlines control
must preserve an eye fixed on economic coverage advanced with the aid of using authorities
of United Kingdom with the intention to formulate key practices associated with commercial
enterprise functioning. The economic coverage is advanced and formulated with the aid of
using imperative financial institution with the intention to manage the cash flow. The
economic coverage additionally enables the U.S.A. to get over excessive inflation and
deflation situations. The economic coverage is likewise formulated with the intention to
expand an essential method in dealing with the cash circulation. Virgin Atlantic Airlines
Corporation must keep in mind the improvement and system of cash deliver with the
intention to expand centered method in dealing with key monetary operations (Giles, 2018).
How will the UK current growth rate impact on the chosen business (give reference to
economic life cycle, GDP, inflation, unemployment rate)
The boom fee of United Kingdom performs a scientific and vital position in impacting
predominant features of Virgin Atlantic Airlines organization. In the current times, it's far one
of the key position of control of Virgin Atlantic Airlines organization to examine boom fee of
the financial system to formulate key enterprise practices (Hope, 2018). The fundamental
elements associated with boom fee of UK which additionally influences at the functioning of
Virgin Atlantic Airlines organization are stated below:
 Gross home merchandise- The gross home fabricated from United Kingdom is sum
of all merchandise that is synthetic within side the United States. It is prime position
of a organization to cognizance on gross home product so that you can decide key
elements that contributes to it. The gross home fabricated from United Kingdom for
the yr 2022 is 2.seventy one lac Corers USD. The gross home fabricated from United
Kingdom tells approximately the financial improvement of the United States. It
additionally influences on functioning of predominant corporations that are a part of
United Kingdom. The corporations must carry out nice enterprise practices in phrases
of operations and manufacturing control so that you can broaden targeted technique in
dealing with economic operations.
 Unemployment fee- The unemployment fee of the United States is one of the
predominant macro-financial elements which effect at the functioning of an
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organization. It is one of the predominant positions of an enterprise to cognizance on
preserving personnel so that you can lessen the unemployment fee (Kasemsap, 2018).
The worker turnover ratio is minimized through the organization with the assist of
sure regulations and regulations. In the company international of United Kingdom all
predominant corporations must place emphasis on worker retention for higher
technique. The human useful resource control of an enterprise must cognizance on
improvement of unemployment fee so that you can boom the participation of
personnel. The productiveness of complete organization and personnel must be
extended with the assist of retention policy. This is vital position of human useful
resource control of Virgin Atlantic Airlines to lessen the unemployment fee whilst
specializing in key regulations and regulations. In order to lessen the unemployment
fee, it's far key position of an organization to broaden nice retention regulations and
running situations for the personnel.
 Deflation- The deflation is a macro-financial circumstance which rises up because of
shortfall of cash supply. It is predominant position of an organization to broaden
deflation dealing technique for the formula of nice employment regulations (Lam, and
Wong, 2018). In order to advantage aggressive gain within side the company
international, it's far essential for the organization to cognizance on lowering the
possibilities of enterprise effect through deflation the use of expert regulations and
regulations. The organization must additionally broaden strategic and making plans
framework so that you can cope with key problems and challenges. The deflation
charges also can effect on sales and profitability of the enterprise corporation in a poor
manner.
How can the government current intervention methods affect the selected busines? (e.g.,
fiscal and monetary policies, furlough scheme etc).
The authorities play a crucial function in growing the probabilities of commercial
enterprise improvement and boom. In the latest times, its miles crucial function of presidency
to facilitate key operations together with improvement of commercial enterprise regulations
within side the financial system (Leke, Chironga and Desvaux, 2018). It is likewise moral
responsibility of Virgin Atlantic Airlines to recognition on following primary regulations and
plans of the authorities. In order to benefit aggressive gain in a quick span of time,
organization must rent expert personnel in studies and improvement department. The
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principal intervention strategies which may be analyzed through Virgin Atlantic Airlines are
referred to below:
 Fiscal coverage- The financial coverage is one of the key frameworks that is
advanced through authorities a good way to broaden centered technique in dealing
with financial aspects. The finances that is advanced through authorities additionally
enables in growing the probabilities of commercial enterprise improvement within
side the financial system. In order to control key operations, it's miles crucial for the
organization to observe the financial coverage formulated through authorities. It is
likewise one of the primary roles of a commercial enterprise to broaden key
regulations in line with the financial coverage of position (Nisula and Pekkola, 2018).
The financial coverage additionally develops a key technique in retaining the
expenditure and sales of the authorities. In order to broaden centered technique on
their marketplace, its miles essential for organization to growth the probabilities of
enlargement of commercial enterprise with following financial coverage.
 Monetary regulations- The financial coverage through UK authorities play a first-
rate function in growing the probabilities of commercial enterprise boom. It enables
the organization to growth the probabilities of commercial enterprise boom. In order
to broaden financial coverage in a unique manner, it's miles key function of
presidency to don't forget inflation, deflation and recession rates. Monetary coverage
and its improvement additionally enable the groups to supply pleasant financial
outputs. The financial coverage additionally enables Virgin Atlantic Airlines to carry
out monetary operations whilst deliberating scenario of inflation and deflation in an
financial system. The United Kingdom authorities are attempting its degree pleasant
after BREXIT to restore the financial system with the assist of financial regulations.
 MSP and subsidies- The minimal assist costs are taken into consideration as a sort of
monetary help that is supplied through authorities to key groups. It is one of the
essential function of presidency to assist begin ups and cutting-edge commercial
enterprise corporations through presenting honest MSP. Subsidies alternatively also
are taken into consideration as primary monetary assist which enables a commercial
enterprise entity to benefit systematic boom on the marketplace. The MSP and
subsidies must be supplied on ordinary foundation to groups a good way to growth
their ability and strength (Panda and Rath, 2018). This makes it less difficult for the
organization to broaden centered technique in dealing with key conditions wherein
they face monetary problems.
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 Schemes and initiatives- The authorities of United Kingdom try and carry diverse
supportive schemes for the groups. These schemes offer key gain to the groups a good
way to address primary problems and challenges. Recently because of COVID-19
pandemic, all primary worldwide and country wide groups of United Kingdom has
confronted primary monetary crisis. The authorities went supportive to all of the
groups through bringing primary revival schemes (Ronald, 2019). With the assist and
assist of primary schemes of presidency, the groups had been capable of jump back. In
the latest times, its miles key function of a commercial enterprise to enforce pleasant
commercial enterprise practices with the number one recognition on schemes of
presidency a good way to benefit preferred success.
What are the current global challenges facing by the chosen business and
recommendations on how to overcome them in this current time?
In the functioning of Virgin Atlantic Airlines, the worldwide demanding situations
and problems majorly influences on its functioning. The primary mission of the pinnacle
degree control and better government of an enterprise are to stand international demanding
situations and problems with the assist of regulations and rules. The economic disaster which
has been confronted via way of means of businesses additionally positioned a primary query
mark on their running. In order to stand the worldwide demanding situations in a nicely
described manner, it's miles vital function of an agency to pick and expand first-class strategic
choices (Shehata and Montash, 2019). Challenges are people who problems or stumbling
blocks that have an effect on the running or working within side the functioning of an
enterprise organization. These demanding situations have a terrible effect at the enterprise
organization. Different problems and demanding situations which are being confronted via
way of means of Virgin Atlantic airways are mentioned and defined below:
 Pandemic scenario: the scenario of pandemic within side the international has
decreased or reduced the probabilities of flying of the humans from one vicinity to
some other of the international. The authorities of numerous exclusive international
locations and economies have positioned sure boundaries and regulations and rules
within side the access and go out of their economies and international locations that
avert the overall performance and additionally the income of the Virgin Atlantic
airways from flying to at least one vicinity from some other.
 Poor fine services and products: Virgin Atlantic airways had been offering bad fine
services and products to their customers and clients thereby ensuing within side the
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lower of the income and income of the enterprise organization within side the
marketplace, and this has additionally cause the boom within side the opposition
within side the marketplace of various airways (Yan, 2018).
 Lack of finances and assets: there may be additionally a fantastic loss of economic
assets this is being confronted via way of means of the Virgin Atlantic Airlines as
there may be entire discount and reduce within side the income and income of it. So
there may be no right maintaining of current personnel and new personnel aren't
completely skilled and advanced because the Virgin Atlantic Airlines is going through
loss of coins and all different economic assets.
 Recommendations: There are numerous pointers that may be given to Virgin Atlantic
airways for the powerful and green running and working of its exclusive operations in
the organization. These may be that it desires a right crew to control and perform the
numerous features which are being operated inside it. There is an entire want to offer
right education to its current and new personnel for his or her operations and running
in the enterprise organization for powerful and green running and additionally the
non-public and expert increase and improvement of the personnel (Sioshansi, 2019).
Time and crew control alongside entire cooperation and coordination within side the
running is vital in among all of the personnel and additionally with inside the
exclusive departments of it. This will assist with inside the right and well-timed
success of all of the desires and targets of it inside right time which are already pre
decided with the fantastic well timed attainment of desires. The crews of Virgin
Atlantic Airlines have to offer its customers and clients with fantastic and desirable
products and services as while the customers and clients might be satisfied, there
might be boom of their income and thereby it's going to assist it in gaining logo cost
and additionally desirable will within side the marketplace of airline industry. If
Virgin Atlantic Airlines adopts most of these pointers nicely and on time, which could
end result it in offering extra and extended income and income within side the airline
industry (Zaman, 2018).
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Conclusion
From the above evaluation it is able to be concluded that with inside the improvement of a
country, macro-financial elements play a key position. This is concluded that macro-financial
elements like gross home product, country wide income, employment ratio facilitates in
contributing to financial increase in a unique manner. This task concludes the position
performed with the aid of using authorities in an effort to manage the financial forces and
elements of a country. The above evaluation additionally concludes that it's far most
important position of a commercial enterprise to recognition on improvement of key financial
elements to growth the capacity of the economy. This task additionally concludes that in an
effort to benefit fulfillment on the marketplace, it's far primary position of a organization to
recognition on call for and deliver that are associated with economics.
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References
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