P5- Describe the influence of two contrasting economic environments on business activities within a selected organisation

In this task I would be talking about the influence of two economic environments on business activities. So this could be how Sainsbury’s in the UK operated during the recession and the boom period. The UK is in the growth economic environment and this means the country was before in the recession economic environment and now it is growing. This does not mean they are a rich country compared to China.
Economic
• Importance of stability- stability is when business people can make predictions for the short and the medium term about likely demands for their products in the near future. For example, Sainsbury’s might want to have stability because they want to make sure the company is able to continue to make sales and profits. Stability involves being able to make deals which are secure. So when you borrow money from someone, you want to make sure you get the accurate payment. Sainsbury’s would want to make sure their stakeholders are getting what they want and to form a stable relationship with their stakeholders. For example, Sainsbury’s offers stability to Fair-trade cotton farmers. Sainsbury’s have committed to buying a year’s worth of cotton during the harvest period. This will allow the famers to plan how they use their money, as they will have a guaranteed annual income.

Ninad Gupte, from the Project Executive Body Agrocel, said, “Cotton prices are very unstable so guaranteeing our farmers a minimum price and pre-financing the Fair-trade social premium, offers security that has not been possible in the past. Through this initiative, our farmers’ cooperative body has been able to improve conditions by investing in projects like providing clean drinking water and health checkups.”

• Impact of changes in the economic