Influence of MacroEconomic Activity on Business Outputs - Desklib

Business Environment
Title:
Influence of Macro-
Economic Activity

Table of Contents
 Introduction
 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.)
 How will the UK current growth rate impact on the chosen business (give
reference to economic life cycle, GDP, inflation, unemployment rate)
 How can the government current intervention methods affect the selected
business? (e.g., fiscal and monetary policies, furlough scheme etc.)
 What are the current global challenges facing by the chosen business and
recommendations on how to overcome them in this current time?
 Conclusion
 References

INTRODUCTION
Macro economics is a theory that helps in sticking together number of policies, sources and
the technologies which play a role in maintaining the economic development. Its main aim is to pay
attention on the working condition of the economic, this includes the change in the economic result,
inflation, interest and foreign exchange rate. It majorly works on three things that is national output,
unemployment and inflation. The purpose behind the macro economic is to provide full
employment to the people, to keep a high rate of economic growth along with maintaining
sustainability and lastly managing and balancing the payments. There are few main policies which
help in maintaining the balance in the system that are Fiscal , monetary and the exchange rate
policy. (Mitchell., 2019. )
MAIN BODY
Factors of macro economic that are chosen to influence the outputs in the business:
Macro economic factors are considered with a positive, negative and neutral affects on the
economy. These factors are used as indicators which denote the growth in the financial status and
decline in the economic status. Macro economic factors bear the whole economy of a nation, the
factors including in the macro considerations are the tax structure of the authority, the monetary
policy. The rise in price in a given amount of time is known as inflation, the amount of people who
are looking for an employment but are not able to get the employment and remain unemployed., this
affects the rate of unemployment. (Goodwin, 2018)The Virgin company started the business in
1980's to chart routes between London and overseas territory of Britain known as the Falkland
Islands. The company is affected by the macro economic factors. The two major factors that affect
are:
1) Unemployment rates: The term denotes the number of people who are not working or
having any job in any organisation who are looking for jobs but cannot get a job to be an
employed person. These rates are been examined by the businesses as it will impact on the
economy. There will be a down fall in the economy cycle when ever the number of
unemployed people increases. The reason as to have more unemployment people is the the
business are not in taking more staff as they are not capable of paying the salary of the
employees and the items are not getting scold due to which there is a downfall in the
business. And if the people are not fully employed than they would not be able to make the
best of the resources or of the products the businesses sell to the common group of people.
Now, talking about the virgin Atlantic airlines it refers the flying of the customers will be
less as they would not be able to afford the cost of the tickets due to unemployment. The
people will not make plans with there families to go on vacations, to have a get together