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Economic Environment Assessment


The assessment addresses the following learning outcome:

• Evaluate the impact that external micro and macro environments have on the activities and performance of organisations.

Assessment Brief

The Economic Environment module assessment is a group report (individual for re-sitting students) consisting of two parts. The report will provide an analysis of the micro economic and macroeconomic environments that impact on an organisation or sector of the group’s choice.

Micro economic issues 50%

As part of the report the group will examine the micro economic aspects affecting the business or sector selected. It will include a full discussion that identifies the key features and constraints that impact on the competitive environment under consideration.

Specifically, this will address:

1. The extent of competition in the sector/market – e.g. the number of competing firms, the size of these firms and any particular issues that arise from this, such as market dominance, price leadership, scale economies, issues that may arise from regulatory and associated legal constraints, such as patents etc.

2. The theoretical implications arising from the competitive environment and the implications that these have for the way in which the proposed organisation structures and implements its competitive response. This will involve its approach to both price and non price decisions. The report must make full use of the theories and models addressed by the module and use these to interpret and analyse the competitive behaviour of the firm or firms under consideration.

Macroeconomic issues 50%

Specifically, this will address:

1. The developments that are taking place in the general economic environment, including the general level of economic activity and the likely projections for the future measured in terms of the key macroeconomic indicators.

2. The international economic environment; including the impact of exchange rate fluctuations and developments in the general international trading environment. The second element contributes 50% of the marks of the module.

For this part of the report, you will be expected to identify the current trends in the key macro-economic variables: inflation, economic growth, unemployment, exchange rates, national income etc. and discuss the likely consequences for the UK/international economic environment arising from monetary and fiscal policy for the short and medium term. In addition you should discuss in specific terms the implications that this environment will have for the firm or sector that your group has chosen to analyse. Again, marks will be awarded for use of appropriate models and theories in your discussion.

The report must be no longer than 4000 words.


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