Unit 1 Business Environment - Level 4

Unit 1 Business Environment

Level 4

Task 2. The general business environment

2.1 PESTEL analysis of Premier Foods’ business environment

2.2  How the following macroeconomic factors affect Premier Foods’ business.

Rank#1: CPI inflation

Rank#2: RPI Inflation

Rank#3: Interest rate

Rank#4: Exchange rate

2.3 What are the social and cultural factors affecting consumers which lie behind Premier Foods’ decision to split its business into ‘Power Brands’ and ‘support brands’?

2.4 Is Premier Foods’ current strategy to stop growing its business by buying up other businesses, and to concentrate instead on consolidation and organic growth, the right one?

Task 3. The international legal and regulatory environment

3.1 Will this be good or bad news for Premier Foods in terms of the company’s inputs? What about its outputs?

3.2 Which of our two companies, Premier Foods and Vodafone, might have more to lose by the UK being outside of the European Economic Area (EEA)?

3.3 Which of our two companies, Premier Foods and Vodafone, might have more to lose by the UK being outside of a common regulatory framework for business?

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