COVENRTY UNIVERSITY
FACULTY OF BUSINESS ENVIRONMENT AND SOCIETY 2012 M03EFA: Economic Environment of Business(2012)Course Leader: Dr. Keith Gray7th December 2012Examine and critically appraise how an economist would evaluate the economic impact of a major investment project such as ' The London 2012 Olympic Park'.Azeemudeen Fazal Mohamed (4602688) |
MBA General Management |
Contents Abstract 3 Economic Impact of the London 2012 Olympic Park 4 Assessment of economic environment 7 The political factors 7 The economic factors 8 The social factors 9 The technological factors 9 Conclusion 10 References 11
Abstract
The ever bifurcating market place and consumer preferences are increasing complexities for the economists to evaluate and understand the decision making rationale of producers and end consumers. Additionally the factors of production and institutionalization are contributing to ceaseless challenges for generating market equilibrium where perfect competition can be exemplified (Weatherly, 2003). One of the basic factors for this shift is demand and supple equilibrium is characterized by the increasing demands of seasonal items. London Olympics 2012 is an example of a similar event that has motivated the economist to reconsider the rational decision making patterns of businesses and individual consumers.
I. Introduction:
The major investment project usually involves the creation, acquisition, development or maintenance of an asset with a lifespan beyond the current financial year. The London 2012 Olympic park is the biggest project done on billions GBPs. evaluation of Project was done by analyzing the costs and benefits of a proposed project with the goal of assuring a rational allocation of limited funds among alternative investment opportunities in view of achieving certain specified goals. Proper identification of project costs and benefits is an important step. An improper identification of costs and benefits would lead to under - estimation of costs or over-estimation of benefits or vice versa. Indeed it must have gone with various consultants on the basis of financial aspects and economical aspects. Here are some examines and appraisals of an economist on the economic impact on major investment project -'The London 2012 Olympic park'.
II. Economic impact On Social environment:
The economic impact is the effect of macro economics on the commerce that involves the trading and transportation of goods and services for large amount of cash or exchange on goods; the employment that involves the income, changes in standard of living, changes in the diversity of living; money flows on all variants. The impact of London Olympic park had dragged the motivation of public and personal future to the various extinct. Here are some of the factors of economic impact London Olympic park.
London 2012 Olympic Park is a classic representation of economic environmental shift. It was the time when the natives were following the event and the local vendors has an immense opportunity to target not just the nativesbut also the foreigners. The economy of London is well saturated withvarious competitive and well known local and international brands. But yet the London 2012 Olympic presented them a new opportunity that incorporated mass production for a homogenous target. Mass production was the nominated strategy because the target was following the similar trends as exhibited in the event of London 2012 Olympic. Additionally the target market is rendered as homogenous because of the fads being followed in the event(Hofreiter&Huemer, 2006).
The disturbance in the internal factors of businesses associated with the London 2012 Olympic is characterized by the firms operations and the returns. If a firm accruing losses its due to the short run, operations can be continued rather than shut down decision, depending on the capability and type of loss(Dyck andOvaska, 2011. In the Average
The economic impact of WW1 was the most significant impact upon Italy (1915-1918). To what extent do you agree? (22)! ! ! ! The economic impacts that were brought about by WW1 were extremely significant, however there are other areas to consider that also had a great affect on Italy and its people. Italy had signed the treaty of London in 1915, this was a secret agreement between Britain, France and Russia that guaranteed the Italians generous territorial gains provided they joined the side of…
The economic impacts of e-Business Electronic business, also known as E-business, is the conduct of business on the internet and other computer networks. It doesn’t just involve buying and selling of products, but also customer services and collaborations with business partners. In recent years, e-business has developed rapidly and the e-purchasing system is becoming more popular all around the world. Electronic business (e-business) is a general concept covering any form of business transaction…
Williams 1 Richard C. Williams Dr. Steven Peterson EMBA 512 3 November 2014 Economic Impact of INL Introduction This paper considers two potential black swan events that would have a major impact on the INL, the surrounding areas, and the state of Idaho. Both events are extremely unlikely, but provide a backdrop for exploring the economic, fiscal, and social impact of the INL. The first event is the adoption of an extremely conservative budget as has been proposed in the past by Paul Ryan. With this…
Economic Impacts of Beijing Olympic Bird Nest and Water Cube: We can all recall the opening of Beijing Olympic in Bird Nest where the gorgeous fireworks and fantastic shows were shown. As well as the Water Cube, an exquisite designed water stadium, which all the water competitions were hosted. After the 2008 Beijing Olympic, those multibillions infrastructures were put into use only a few times and for most of the time, they were empty. Some people believe the construction of those infrastructures…
Economic Impact: Dubai Dubai is the largest of the seven emirates in the United Arab Emirates. It is quickly growing into a huge tourist spot and prides itself on having some of the world’s greatest attractions. However, sometimes having the best comes with consequences. Despite the Middle East’s relatively low tourist rate, Dubai had been able to attract many “big spenders,” which has enhanced its economy, but can also take a toll on the people. In her article, “Tourism in Dubai,” Joan Henderson…
There were many things that happened in this time period that had an impact on the economic history of the American people. One of the major troubles that occurred during the 1920’s were a lot of people weren’t receiving a good salary or even making money at all, so businesses and industries were losing money and not making a profit due to failures in banks. Almost everything that was once in high demand dropped to its lowest, like wheat and corn. The prices were way too high so people couldn’t afford…
“Economic Impact of the Affordable Care Act” The current healthcare system over burdens the economy and is far too costly in comparison to the health benefits it delivers. The United States spends about 50 percent more on healthcare than any other developed country (as a fraction of our total national economy) and we get less for it on what matters. The human capital required to obtain these services leaves many Americans doing without or not receiving the medical treatment required. The Affordable…
Week 1 – DQ Identify economic factors that affect the real GDP, the unemployment rate, the inflation rate, and a key interest rate. How do you predict the economy will perform in the next two years given the current state of two of the economic factors you identified? How might your organization be affected by these changes? Response #1 There are many factors that affect the real GDP such as interest rates, consumer's confidence in spending and/or asset prices. When it comes to interest…
Social-economic Impact of ICTs in Modern Society In the recent past, ICT has become integrated into almost every aspect of our lives and in future it will be mandatory for professionals in all areas to possess computer skills (Heathcote, 7). Overall, ICT has improved efficiency in various aspects of our lives and in the workplace it has become a measure of competitiveness. The efficiency has been led to increased profits in businesses by reducing the cost of production. Information technology has…
important means for enhancing the lives of the poor and therefore a major tool for economic and social development mostly in rural areas. Lately, contrary to this widespread belief, critics have raised eyebrows against this growing popularity of microfinance as a major tool for enhancing economic development. Contrary to belief, they are of the opinion that microfinance is a ‘make-belief’ that is hindering economic and social development rather than enhancing it. It is to this regard and in light…