Unit 1 Task 4
Introduction
This report will be talking about the impact of economic factors that can affect an
environment. The organisation I am talking about is Colchester Zoo.
Colchester Zoo was first opened in 1963 and is home to many endangered and rare
animals. The Zoo also does a lot of work abroad and with charities that provide support
and care for animals across the world. Their overall turnover is roughly £13,731,523
(2014, sourced from Company Check) and they employee around 250 full time and part
time.
Growth, Recession & The Ripple Effect
Growth is where a company’s profit increases and their produce and customer levels
increase. Unemployment tends to fall when a company’s growth increases. Colchester
Zoo’s general footfall would increase as disposable income in a lot higher. Because of
this, the Zoo can take advantage of this by charging prices to be higher.
Recession is where a company has a fall in GDP. Colchester Zoo’s overall customer
levels would be lower and there is a less disposable income for consumers. They would
react to this by lowering prices and offering discounts and deals. When a recession
happens, employability and redundancy will increase and there is less opportunity for
promotion.
The Ripple Effect is where external businesses are influenced by the performance of
Colchester Zoo. An example of this would be a taxi rank and coaches. If Colchester Zoo
were to go into recession then external business would decline in sales as they are
dependent on the performance of the Zoo.
Fiscal and Monetary
The Fiscal Policy is the taxation and spending decisions of a government. The Monetary
Policy is a central bank or Government decisions on the rate of interest, money supply
and exchange rate.
Either of these policies can be used during a recession and growth. During a recession, a
Fiscal Policy is more likely to be used so the Government can use tax money on health
and education. Increasing their expenditure on Education means that they will make a
better educated adult which in return means that organisations such as Colchester Zoo
can hire people in the future that are better suited to the job and will have a positive
impact on the business.
Introduction
This report will be talking about the impact of economic factors that can affect an
environment. The organisation I am talking about is Colchester Zoo.
Colchester Zoo was first opened in 1963 and is home to many endangered and rare
animals. The Zoo also does a lot of work abroad and with charities that provide support
and care for animals across the world. Their overall turnover is roughly £13,731,523
(2014, sourced from Company Check) and they employee around 250 full time and part
time.
Growth, Recession & The Ripple Effect
Growth is where a company’s profit increases and their produce and customer levels
increase. Unemployment tends to fall when a company’s growth increases. Colchester
Zoo’s general footfall would increase as disposable income in a lot higher. Because of
this, the Zoo can take advantage of this by charging prices to be higher.
Recession is where a company has a fall in GDP. Colchester Zoo’s overall customer
levels would be lower and there is a less disposable income for consumers. They would
react to this by lowering prices and offering discounts and deals. When a recession
happens, employability and redundancy will increase and there is less opportunity for
promotion.
The Ripple Effect is where external businesses are influenced by the performance of
Colchester Zoo. An example of this would be a taxi rank and coaches. If Colchester Zoo
were to go into recession then external business would decline in sales as they are
dependent on the performance of the Zoo.
Fiscal and Monetary
The Fiscal Policy is the taxation and spending decisions of a government. The Monetary
Policy is a central bank or Government decisions on the rate of interest, money supply
and exchange rate.
Either of these policies can be used during a recession and growth. During a recession, a
Fiscal Policy is more likely to be used so the Government can use tax money on health
and education. Increasing their expenditure on Education means that they will make a
better educated adult which in return means that organisations such as Colchester Zoo
can hire people in the future that are better suited to the job and will have a positive
impact on the business.
