• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

This news feature is for the chamber of commerce and will be looking at how changing economic environment has affected New Look Retail Store.

Extracts from this document...

Introduction

ECONOMIC NEWSPAPER New look is a British global fashion retailer which was founded in 1969. They have a chain of high street shops in Britain and trade in-store and online. New look now have over 1,000 stores worldwide, in the UK and Republic of Ireland, Europe, the Middle East, Singapore, Russia and Poland. This news feature is for the chamber of commerce and will be looking at how changing economic environment has affected New Look Retail Store. Over a period of time, there are changes in the level of economic activity in an economy. In some years economic growth might be quite slow and in other years growth rates tend to be stronger. There is a tendency for patterns of economic growth to occur. This is called the Business Cycle. Gross Domestic Product GDP is a Value of a country's overall output of goods and services (typically during one fiscal year) at market prices, excluding net income from abroad. GDP can be estimated in three ways which, in theory, should yield identical figures. They are (1) Expenditure basis: how much money was spent, (2) Output basis: how many goods and services were sold, and (3) Income basis: how much income (profit) was earned. These estimates, published quarterly, are constantly revised to approach greater accuracy. The United Kingdom is among the world's most developed economies. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. Over the past two decades the government has greatly reduced public ownership and contained the growth of social welfare programs. The graph above shows UK Gross Domestic Product decreased by 0.5 per cent in the fourth quarter of 2010, compared with an increase of 0.7 per cent in the previous quarter. The GDP estimate was significantly affected by the bad weather in December; as customers and Suppliers could not get around supplying goods and services the GDP dropped. ...read more.

Middle

The balance of payments is basically an account showing the difference between the total exports and the total imports for a country. Exports are goods we sell abroad; Imports are those we buy from abroad. The last updated figure was in November 2010 and was �4.6 billion. The UK's deficit on trade in goods widened by �14.8 billion to �97.2 billion in 2010 and in 2009 it was only �82.4 billion. Total exports rose by 16.9 per cent, and total imports rose by 17.2 per cent. The United Kingdom's exports manufactured items like telecommunications equipment, automobiles, automatic data processing equipment, medicinal and pharmaceutical products and aircraft. Its main trading partners are European Union countries, The United States, China and Japan. . The statistics and graph could have had an effect on New Look in the sense that New Look was also able to trade more in their international stores as well concluding in more sales being made. This is also an indication that a recovery was being made. How Economic Environment Affect New Look New Look is a British global fashion retailer with a chain of high street shops in Britain, Belgium, France, The Netherlands, Republic of Ireland, Malta, Singapore and the United Arab Emirates. New Look was founded in 1969 in Weymouth, Dorset by Tom Singh. Since then the company has rapidly expanded and now operates across a chain of over 1,000 stores internationally and a staff of over 30,000. The group had a turn over of �1,147 billion in 2008 with profits of �179 million. I have carried out a PEST analysis to investigate the important factors that are changing within the business due to the economic environment. A PEST analysis will be easier to look at for me. P- Political Changes: I will be analysing the change in UK government or a change in government policy and how it might have affected New Look. ...read more.

Conclusion

Another way tax could affect New Look is that any new laws that the government could imply could affect the way a company is taxed, adding uncertainty in dealings. If New Look were to be un sure about it they could end up with a massive tax debt. S- Social changes & T- Technological changes: I will be analysing how New Look Relate to changes in wider society such as changes in lifestyles and how they relate to the application of new inventions and ideas such as the development of the internet and websites as business tools. A major social change has been that many people are working from home today using home computers to buy online and shop without having to go in store. This has led to a reduction in demand for less staff operating in store which means fewer jobs. Even though New Look will still receive profit, unemployment statistics will rise and an increase in benefits will be given out for example; job seekers allowance. If society continues this way, New Look may not even be making money in store anymore which will lead to them closing down and just operating online. New inventions like the Iphone and Ipad have applications were Retail stores can upload latest fashion and you can shop and browse right off your phone. This is a benefit to customers as it is easier for them to access rather than going in-store. Again, this type of intervention can result to job losses to the people who are actually working in-store. Employees will have no reason to come in to work as there would be no one to do customer service for. As for the economic environment now New Look are dealing with it affectively, however if society continues to change New Look will come out of business. ?? ?? ?? ?? Francesca Bademosi Unit 39: The impact of economic change in business P1 D1 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Marked by a teacher

    Skills and Knowledge Needed to Work In A Business Environment

    5 star(s)

    shadowed, example colleagues at work, the person could observe how they handle their relations with others in the company or other colleagues within the company, this is a key skills because the skills and knowledge can be passed on by just shadowing.

  2. SWOT and Pestel analysis for Carlton Forum leisure centre

    Fitness classes The classes are currently in decline thus not using it to full ability and could combine with intangible resource development to help turn the decrease around. Equipment operating system Using the best system around thus helping to meet the business objections.

  1. The Impact of Migration on the Reduction of Poverty

    The quality of such data, the biases it may contain would reflect on the validity of the conclusions. More over, the researches on which we would relying for drawing conclusions relate to the time period when Mexico was experiencing buoyancy in remittances and with the global melt down that started

  2. Unit 1 P5 Describe the influence of two contrasting economic environment on business activities ...

    our sales during the quarter by between two and three percentage points? this suggest that Tesco plc is trying to decrease the prices of their it products so that consumer are able to afford. Tesco PLC revenue was a lot less and growing slow in the recession for example on the article, Mr.

  1. Nestle stakeholders and business environment

    To do these goals, they invested CHF 143 million in environmental improvement, identified and implemented projects to improve their environmental impact, worked alongside suppliers to promote best practice in their supply chain. The Nestlé Policy on Environmental Sustainability sets out our principles, approach, commitments and priorities.

  2. The international business environment of Apple Inc

    The latest product that Apple have introduced is the iPhone. This would have only been possible because of the developing countries such as China. Vast amounts resources have been used in order to design such a product. Developing countries do not only have an impact on the technology of the products but also with the labour costs.

  1. International Business. Tescos in the UK and China The Economic Environment Facing ...

    The UK?s per capita is currently at 0.5% which shows people don?t have much disposable income. The ripple effect is a diagram of confidence within a country, for example constant change in government policies, a bank going under or high interest rates.

  2. Assignment 1 - Understand the legal requirements for a valid contract

    Lindsell wrote to Adams offering wool requiring an answer in the course of business. Lindsell misdirected the letter which reached Adams on the 5th. However also on the 5th Adams posted a letter of acceptance which reached Lindsell on the 9th.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work