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Local, national and European economies impact on two contrasting organisations within the UK, Vauxhall Motors and JD Wetherspoon.

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Introduction

LOCAL, NATIONAL AND EUROPEAN ECONOMIES IMPACT ON VAUXHALL MOTORS AND JD WETHERSPOON Introduction In investigating to what extent local, national and European economies impact on two contrasting organisations within the UK, Vauxhall Motors and JD Wetherspoon provide a interesting and informative perspective to base this on. An organisation has traditionally been defined as a group of people with a common purpose. According to this view, the organisation is a distinct entity separate from its environment. This means that if the organisations environment changes the organisations has to adapt. So in looking at economics, which is essentially an organisations environment, you need to understand what exactly economics are. The fact is economics affect our daily lives. Continually we are being made aware of local, national and international economic problems, and continually we are faced with economic problems and decisions of our own. Basically economics is essentially about money. This is measured by how much money people are paid, how much they spend, what it is costs to buy various items, how much moneys firms earn and how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money. There are many areas such as the production and consumption of goods, demand and supply, which affect organisations. With this is mine two UK companies which have been affected heavily in recent years buy local, national and European Economies are Vauxhall Motors and JD Wetherspoon. They have been affected in very different ways and this report will try and demonstrate the ways in which these companies have been affected. Vauxhall Motors Firstly Vauxhall Motors is one of the longest established motor manufacturers in the world, and part of the world's largest corporation - General Motors. Founded in 1903 the company now employs 7,000 people directly, and supports an estimated 30,000 further jobs in the UK. ...read more.

Middle

The UK economy is currently at an all time high performance; it hasn't performed as well as it currently is for several decades. There have been 33 consecutive quarters of positive growth of the economy and 19 months where inflation has been below the target of 2.5%. Unemployment in the UK was, as of the end of 2000, at a 25-year low and thus employment at a record high. This can only be good for both companies. Furthermore, earnings growth is remaining below the danger level set by the Bank of England. The official interest rates in the UK have been 6% since February 2000 and this was the longest period of stability of the interest rate in over 10 years. This indicates that there will be less borrowing in industry and would not bolster productivity. A negative for Vauxhall. Stability in the UK economy is expected to continue and a continuance of low inflation is forecast for the next two years at least. Furthermore, interest rates are expected to fall gradually from Q2 in 2001 onwards. Unfortunately, there is also a risk here to the consumer. Inflation and unemployment both have a relative negative impact on the economy as a whole, if either factor is high. The costs can be further highlighted if unemployment or inflation are inaccurately forecast or anticipated. Both issues also have a negative impact on economic growth. A continuing trend of the UK from primary industry towards secondary and tertiary industry is indicated by the fall in manufacturing output. Industrial production expanded at its slowest rate since June 1999. Recent problems for the primary industries in the UK, such as severe weather and fuel protests, have played a part in the poor performance but, nonetheless, it remains a weak sector of the economy. The tertiary sector is the complete opposite -- it is growing rapidly, particularly in November of last year despite higher costs in the tertiary industries. ...read more.

Conclusion

The resulting economies of scale will stimulate trade, and improve the competitive position of business in the enlarged EU. Vauxhall will become more competitive and there is a real chance for JD Wetherspoon to expand throughout Europe. Enlargement could bring new investment into both companies that previously was not there. Basically there will be much change and both Vauxhall and JD Wetherspoon will need to stay alert to all this change to stay competitive. CONCLUSION This fascinating look into how local, national and European economy impact on Vauxhall and JD Wetherspoon can prove beneficial for such companies to understand their full roles in the world of business. Economics affect everybody daily lives and in the business world it is essential to know what is going on 24/7. It is interesting to look at how much different places, times and situations affect such companies. The insight of how Vauxhall and JD Wetherspoon react, cope and move forward to so much change is of much interest. What is clear is that the economic fortunes of this country, its businesses and its people, are tied with the fortunes of our neighbours in an unparalleled way. UK Businesses have to comply in all sorts of ways and a whole raft of other requirements. The challenge of Vauxhall and JD Wetherspoon is to anticipate future changes and to make appropriate responses in terms of business policy and practice. The saying in football "never change a winning team" is appropriate in the case of JD Wetherspoon. This company is in a great position and has a positive outlook. Vauxhall although currently in a decline look to the future in a different way. Hoping for the Euro to come ASAP, which will booster their business much. If your to look at the two companies as Premiership football teams you would see JD Wetherspoon at top of the table with Vauxhall dwindling around near the bottom but it is only Christmas, and there's always a chance of Europe. (See appendix M) Economic Impact on Business Joe Barr - 1 - ...read more.

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