Amy owns a restaurant in Shepparton, however the local economy is struggling. Amy has found that less people have jobs, and as a result less people are spending money at restaurants. Amy is considering her next move.

a. Define the “Macro Environment”.

b. Explain how two economic factors might affect business planning for Amy’s restaurant.

In the following situation:

Amy owns a restaurant in Shepparton, however the local economy is struggling. Amy has found that less people have jobs, and as a result less people are spending money at restaurants. Amy is considering her next move.

a. The definition of the macro-environment is that there is lower spending to profit from.

b. Two economic factors can affect Ay's restaurant business plan by defining what it needs to do to find profitability instead of failure.

Explanation:

The reasons behind these answers are: first of all the spending available is reduced, therefore there is going to be a slowdown in the economy. Amy is going to find it more difficult to profit. Unless she adapts to the new environment. Also, the increase in unemployment and the spending potential people have is going to affect her business because people won't be as disposed to spend at her restaurant. Therefore she needs to find profitability to keep her business as productive as it was. She can change the prices, she can change the menu, she can change the place, she can change the cost of productions, etc.

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