People in Business PEST - Economic Factors

Economic Factors – Video Starter Watch the following video clip: s-studies/comments/a-beginners-guide-to- gdp#extended Now answer the following questions:- What do the letters GDP stand for? What is GDP? How is GDP measured?

Lesson Objectives To identify and analyse economic factors that affect Marks and Spencer. To apply and analyse the effects of economic factors that affect workforce planning at Marks and Spencer

What is a trend? How do you measure a trend? Describe the trend in GDP

Wipeout On the board on the following slide are 12 features of the U.K. economy. 8 of them are when we are in a slump and 4 are not.? How many can you correctly identify? Select 2 players, who will make a bid for the number of correct answers they can identify. The highest bidder who gets their answers correct is the winner

Wipeout Decrease in demand Increasing employment Decrease in business failures Low/negative levels of economic growth Increasing unemployment Fall in profits Decrease in capital spending Increase in disposable income Lower stock levels & price discounting Increase inflation Loss of consumer confidence Increase in business failures

Economic Factors – What happened next? Study the following sentences and add what happened next and then link it to the effect it will have on the workforce at Marks and Spencer. In both cases use connectives. Low growth in GDP affects sales Low growth affects consumer confidence Low growth affects unemployment

Task 1d Produce a newspaper article for the Harrogate Advertiser, which explains how external factors have affected the recruitment decisions of the local store. You should include reference to political; economic; social and technological factors. Now add a paragraph which explains the impact of the changes to GDP on the workforce plan. Explain what is meant by GDP and briefly describe the recent trend. Then explain the impact by: Point – make your basic point Explain – write in greater detail what it means Effects – explain the effect of that point on Marks and Spencer work force plan.

Inflation Video Watch the following video clip Now answer the following questions:- What is inflation? How is it measured?

What is the difference between RPI & CPI? Describe the trend in inflation

Inflation – What Happened Next Study the following sentences and add what happened next and then link it to the effect it will have on the workforce at Marks and Spencer. In both cases use connectives. Increasing inflation leads to money losing value Increasing inflation means that wage demands Increasing inflation impacts on income levels Increasing inflation affects costs

Task 1d Produce a newspaper article for the Harrogate Advertiser, which explains how external factors have affected the recruitment decisions of the local store. You should include reference to political; economic; social and technological factors. Now add a paragraph which explains the impact of the changes in inflation on the workforce plan. Explain what is meant by inflation and briefly describe the recent trend. Then explain the impact by: Point – make your basic point Explain – write in greater detail what it means Effects – explain the effect of that point on Marks and Spencer work force plan.