• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16
  17. 17
    17

What Effect will the Stansted Expansion have on the Surrounding Business?

Extracts from this document...

Introduction

CONTENTS Page 1 Terms of Reference 2 2 Objectives 2 3 Methodology 2 4 Primary Research 4 5 Secondary Research 12 6 Evaluation of Research 15 7 Conclusions 15 8 Bibliography 17 Terms of Reference In this investigation I will be focusing on just the business aspects and effects of the proposed expansion to Stansted Airport, and the benefits this may have to certain business and also possible disadvantages. I will not be covering any social, political or environmental problems unless they have a direct effect on a business. Any issue that does not directly affect a business will be irrelevant to this investigation and therefore will not be involved. Objectives Through this investigation I am aiming to: 1. Specify what effects to business will occur if the expansion goes ahead. 2. Asses what these effects on both directly related and unrelated businesses will be, and what the specific business's views are on these. 3. Identify why these effects may not occur, the possible reasons for this and the alternatives Methodology In order to achieve my objectives properly, much research is going to need to take place. I will conduct some of my own primary research which will involve creating a questionnaire and then asking some local businesses to complete it for me. The questionnaire will include questions which will give me information on the businesses views on the expansion's effects on demand, profit, competition, customer base, employees and employee transport. Different businesses I am hoping to receive a completed questionnaire from include banks, estate agents, hotels, taxi firms and businesses in the airport itself. The data I will collect through primary research will be quantitative data with which I can create graphs in order to compare results and form an idea of trends. It's important to remember however that these results are very time relative and could become of less value over time because situation and views will change with the changing economy and times. ...read more.

Middle

70% of the businesses believe that competition will increase through direct result of the expansion. This will be due to the increase in the amount of businesses moving into the area to cater for the increase in demand for certain products. This will mean they may have to lower prices, spend more on advertising or make their product somewhat more competitive through a specific USP, all of which will affect their overall profits. The customer will benefit however from the lowered price and greater amount of choice. The 30% who answered no (their business will not face more competition) are probably running businesses that are not catering for any need of a customer of the airport, and their market is therefore not expanding as a result of the expansion. 10. Do you believe this expansion will enable your business to expand further itself? These results show that 70% of businesses believe the expansion will allow them to expand, even if it is only slightly. This will most likely be due to the increase in demand enabling them to expand due to higher profits, or expanding out of necessity to access the larger market and cope with it. For instance computerising the system they work on so the business managers can cope with the increase in customers, and employing people to look after it. The 40% of businesses who claimed a great amount of expansion is possible are most likely directly involved with the airport and only catering for customers ad employees using it. Those businesses that expansion will not be an option open to them as a result of the expansion; will be again those businesses whose customer base is not linked to that of the airport. Evaluation of Primary Research To summarise, it is important to notice that all businesses are going to be affected one way or another by the expansion on the airport, and therefore all have a vested interest in it. ...read more.

Conclusion

This increase in business activity and success resulting from the expansion is likely to prove very beneficial for the local economy and its residents. With unemployment lowering due to the new jobs created and money circulation increasing due to increase in demand in the area, resident's disposable income will increase. Therefore those businesses not directly connected to the airport, but in fact catering for the needs of the local community, will also receive greater demand for their goods as people have more flexibility with their money to buy luxury goods. However these increases in demand for the products are only a desired prediction of the future based upon possible forecasts. The aviation industry is likely to hit a slump due to raising prices as a result of the economic downturn, oil prices and increased air travel taxation. With these many factors all contributing towards price increases, it is unlikely they will go unnoticed and therefore seriously harm their demand level. It is also worth mentioning that an important reason for the increase in taxation was the amount of empty seats on flights, and the effect this waste of space has on the environment. The very fact that there are many empty seats questions the success of introducing more flights when all the seats aren't being filled already. So is an expansion really going to be beneficial to Stansted Airport? With the inevitable increase in prices being introduced into the evidently price elastic market, and seat capacity currently not being anywhere near 100%, it seems it may be an expansion to cater for nobody. So overall I believe that the expansion of Stansted Airport, despite bringing great initial benefits to business with the initial influx of those looking for work and passengers not yet affected by the economic downturn, will eventually prove incredibly unprofitable for the airport. Over time the increase in demand that the businesses internal and external to the airport enjoyed will decline and sales will drop to previous levels, if not lower. ...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 Structures, Objectives & External Influences 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 Structures, Objectives & External Influences essays

  1. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    and decreasing the cost of purchasing the stock but this would be unfair to the customers and to the suppliers. This also affects how they behave ethically, as this may affect how they are seen as a business. They may be able to source products cheaper, by using a different

  2. Btec National Business Level 3 Year 1 - Exploring Business Activity

    can be put into the business. In 2006, Bill Gates announced a two year transition period from his role as Chief Software Architect, which would be taken by Ray Ozzie, and planned to remain the company's chairman, head of the Board of Directors and act as an adviser on key projects.[44] As of July 2007, Windows Vista is Microsoft's latest operating system, released in January 2007.

  1. Departments and their roles within a business.

    These figures will then be taken into account when future financial documents are made, this ensures that the business stays on top of their costs and knows where all their capital is going. The amount of capital allocated for a product campaign usually depends on the amount of revenue the product is likely to generate.

  2. Business Strategy of Nintendo. This section will examine the industry in which Nintendo operate ...

    With manufacturers lowering prices to try to stimulate growth this has had a satisfying effect for the manufacturers with both Sony and Nintendo increasing sales in some cases such as the '3DS' there have been a 3 fold increase in sales4 .

  1. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    Task 2: External Factors In this task I will be explaining how the current low level of economic activity may affect Tesco PLC. I will give realistic examples of how Tesco?s may be affected economic wise, I will be also be talking about the Social & ethical issues that the

  2. Political, legal and social factors impact on businesses The two businesses I will compare ...

    This means that Easy Jet will benefit from a growth in the economy rather than if there would be a recession. Also another type of government political factor affecting Tesco would be the stability of the current political position the reason for this is because as stable political leaders businesses

  1. Factors Affecting the Location of a Business - questions and answers.

    Also the company would spend less time in transport, increasing efficiency and maximising profit margins. The second factor to consider is the location of suppliers for their components. When a components business has been established for a number of years it is likely to have relationships with a number of suppliers.

  2. Applied Business. Investigating a business Preston Manor High School

    However the schools budget will get lower and financial issues may occur due to purchases made on these modern technologies. This can lead to Preston Manor to cut down on the amount of purchasing they make on modern technology which means they won?t have high quality facilities or enough facilities and the objective won?t be fully achieved.

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