Level 2 Business and Economics: External Influences

We have looked in quite a bit of detail about the influence of economic events and issues on a business. For many businesses, these external economic events all happen at once. This task is designed to try to get you to think about how a number of events might affect a particular business. You will have to do a bit of research about the business and think carefully about how the different things in the scenario will affect them. Remember the 'it depends' rule!

Image copyright: Miguel Ugalde, from stock.xchng.

You are a small independent CD retailer selling music CDs and DVDs in the centre of a small town in the Midlands. Most of the CDs you buy come from distributors in Europe. A small number of the DVDs come from movie distributors in the United States, with the rest coming from Europe. You employ two full-time members of staff who help with the selling and also the administration and management of the store. You have been in business for ten years and currently turnover around £120,000 each year.

Explain how your business might be affected by external economic factors covered in this resource. Your response should be not less than 750 words.