Influences of Macro-economic Activity on Virgin Holidays Limited

Business Management
BMP4003 Business Environment
Assessment 2
Influences of Macro-economic
Activity
Submitted by:
Name:
ID:
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Contents
Introduction............................................................................................................................2
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.................................2
How will the UK current growth rate impact on the chosen business................................4
How can the government current intervention methods affect the selected busines?.......5
What are the current global challenges facing by the chosen business and
recommendations on how to overcome them in this current time?....................................5
Conclusion...............................................................................................................................6
References............................................................................................................................... 7
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Introduction
Organizations performs their roles and responsibilities in a business environment that
is inclusive of external and internal forces and has a tendency to affect decision-making,
growth, and profitability in the particular industry. To stay competitive in a business
environment organization needs to analyze the extent of the impact of internal and external
factors on organization objectives and goals (Bisciari, 2019). This will help them to
undertake advantage of growth opportunities and further maximize overall competitiveness in
the industry. The macroeconomic environment indicates how macroeconomic conditions
affect organization performance. This mainly deals with spending, aggregate production, and
price level market as opposed to individual and industry. An organization needs to analyze
macro-environment business and have a clear understanding of the elements prevailing in this
environment to focus on issues such as unemployment, inflation, etc.
The Present report is conducted on Virgin holidays limited which is owned by the
virgin group that offers holidays worldwide including with destinations. The organization
was founded in the year 1985 and operates its roles and responsibilities in the tour operator
industry. The present includes a discussion on macro-economic factors which is essential for
an organization to consider to determine their influence on business output. In addition to this
how UK’s current growth rate impacts current business is also included in this report. The
government’s current intervention that affects the organization’s addition to this, presents
global challenges that the selected organization is facing in addition to certain
recommendations being discussed in the present report.
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
Unemployment rates
The employment rate is mainly termed as the percentage of employed individuals in
context to the compatible total population. While the unemployment rate is mainly calculated
by expressing the number of unemployed individuals as a percentage of the total number of
individuals in the labor force (Mayhew and Anand, 2020). It has been evaluated that to
conduct roles and responsibilities in the industry it is essential for an organization to
appropriately calculate the rate of employment rate, as it not only affects their overall labor
growth but also creates challenges in front of them to survive in this competitive industry. In
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