As a large business Longleat has to face a number of economical factors such as taxation, interest rates, labour. Stock markets is not one of the important factors faced by Longleat because Longleat is a private limited company and it would only give shares to the investors it selects. Factors such as tax are common in every business, Longleat has to pay tax to the government such as income and self – employment. This is important because without paying tax the business cannot continue. Longleat carries out many activities and they need money to carry out their activities so they might decide to take a loan from the bank and when they borrow money they have to pay the bank back with extra money so this is one of another important factors faced by the business because if they don’t take a loan they might loose their money by carrying out activities because they can cross the budget limits and business cannot take a loan without willing to pay back the bank with extra money. One of the other important factors are labour, Longleat needs its labour to continue working and Longleat has to pay its employees, employees would have to paid differently according to their posts.
Taxes are also charged on imports and exports but Longleat does not import or export a lot because they can use local or national suppliers to provide them with everything they need because of this Longleat does not have to suffer for and there customers are not hit by high pricing.
There can be many changes in Economy such as distribution, exchange and consumption of goods and services. For example if Longleat’s suppliers change their location or shutdown because of some problem then Longleat would not have anyone to provide them with the goods they need and Longleat would need new suppliers to supply them and the new suppliers might have their prices higher than the old one, this would also effect the customers of Longleat because Longleat would have to increase its prices and customers would have to pay more, this can affect Longleat a lot because customers might not want to come to Longleat again, if there is more consumption of goods and services than it would increase the Longleat’s costs or if there is an increase in consumption of goods externally then the suppliers might run out of stock and Longleat would have to wait until the suppliers have the stock again and Longleat’s suppliers might also be importing products, if this happens then Longleat would have to wait longer which might make a bad image of Longleat in front of customers.
Location can be another factor in economy if changed because it can affect the supplies of a business as well as its customers. Longleat is located in wilthshire and Longleat’s location is significant as it has to be in reach of its customers easily and also it has to be in reach of suppliers otherwise Longleat would face many difficulties. Some factors related to the Location can be the environment, if Longleat would have been set in such a location where taxes for environment are high then it would cost them more and would affect the customers.
