Explain how economic systems attempt to allocate resources effectively within a mixed economy and briefly state the impact on business organisations.

Task 2 (LO2 2.1,2.2,2.3 and M3)

You are asked to write a business report, using the report format that can be found in Submission Guidelines at the end of this assignment brief, to demonstrate your understanding of the nature of the national environment in which Whitbread and Burberry operate. Your report should be in the region of 1000 words. In your report you need to:

a) Explain how economic systems attempt to allocate resources effectively within a mixed economy and briefly state the impact on business organisations such as Whitbread and Burberry supported by applicable examples. (AC:2.1)

b) Assess the impact of fiscal and monetary policy on the Whitbread and Burberry organisations and their activities. Assess the impact that each policy has, and outline the likely results if any policy was changed in a particular way (for example, if a business tax was decreased). Overall, how would you summarise the future impact of the various policies on Whitbread and Burberry? (AC:2.2)

c) Evaluate the impact of competition policy and other regulatory mechanisms on the activities of Whitbread and Burberry. (AC:2.3)

To achieve M3 your report on the national environment that Whitbread and Burberry operate in will need to follow a recognised business report structure

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