Learners should analyse the impact that government policies have on a selected business and the possible reactions of the business to the decisions. Planning approval for a high speed rail link has allowed the local train operating company to run services that use the same track as Eurostar trains....
BTEC Level 3 National Extended Diploma in Business
Unit 38
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Task 1.4- Analyse the implications of government policies for a selected
business
Introduction
In this task, I am going to analyse the implications of government policies for my
selected business which is Tesco. I am going to talk about how important
government policies are to Tesco and how much it will impact on the business as
a whole. I am also going to analyse the implications of each government policy
and what it does for the business. I am also going to analyse the good & bad side
of the government policies that affects Tesco & the economy.
Economic Policy- This is a policy that adds up the rules and regulations which
impact on the economy. The economic policy relates to the economic factors
such as economic growth, unemployment, inflation, gross domestic policy (GDP)
and many more. The good implication of economic policy for Tesco is that it helps
control inflation so prices will not increase a lot and consumers will be able to
afford their products. Another good implication that economic policy will have on
Tesco is that it will control unemployment allowing it to decrease significantly.
Economic policy will allow consumers to find work which they will earn a more
disposable income. This will help Tesco’s business as consumers can purchase
Tesco’s products thus increasing sales & profit for the business allowing it to
succeed. Another implication is that demand from consumers will increase
making them want to buy Tesco’s products more helping Tesco succeed as a
business. Another good implication for Tesco is that their revenue from taxes will
increase allowing the business to survive. Another good implication of economic
policy is that Tesco will be able to make more business investments. As sales &
profit increases, Tesco will have enough money to invest in their business. They
can use those investments to buy more goods & supplies from suppliers, they
can purchase more resources such as buildings, machinery, materials (paper,
desks, faxes), and office equipment such as computers, printers, desks, and
chairs.
Even though there are positive implications of economic policy, there are bad
ones as well that can seriously impact on a business such as Tesco. If the
economy fails, this means the economic policy will have no effect on businesses
around the world. Economic policy is linked with unemployment policy. The bad
implication of this is if the government doesn’t organise its unemployment policy
correctly, this will mean consumers will not be able to find work which will mean
they will have a low disposable income. This will affect Tesco as a business
because consumers will not be able to purchase Tesco’s products which will
mean sales & profit will decrease and Tesco’s market share will decrease. Their
revenue from taxes will decrease and their taxes will increase which Tesco will no
longer afford. Tesco will fail as a business overall. Another bad implication that
economic policy will have on Tesco is the risk of inflation. If demand from
consumers increase significantly this will mean the prices of supply will increase
making it expensive for Tesco to afford. Productivity will decrease and Tesco
cannot be able to sell any products which they will lose a lot of its consumers.
Sales & profit will decrease, Tesco’s market share will decrease which will then
mean Tesco will not lead the UK market anymore. Tesco will fail as a business.
, Another implication of economic policy is that Tesco’s employees might work
longer hours. The reason this may be is that due to the economy growing,
demand for products & services will increase making Tesco’s employees work
longer, they might work overnight which they will be tired & stressful making
Tesco function slowly which will affect the business as a whole.
Industrial Policy- This is a policy that influences industries in a country to
expand. This is equivalent to the economic policy as it provides jobs to a lot of
people. The good implication of industrial policy is that unemployment will
decrease. There will be more industries in the UK that will provide a lot of jobs to
consumers. Consumers will have a more disposable income. This will benefit
Tesco because demand will increase. Consumers will be able to purchase more of
Tesco’s products which will increase sales & profit. Market share will increase
allowing Tesco to own the market and Tesco will succeed and survive as a
business. Another good implication of industrial policy for Tesco is that GDP will
increase. As the GDP increases, unemployment will decrease allowing consumers
to find work easily. Consumers will have a more disposable income to purchase
Tesco’s products. This will mean Tesco’s sales & profit will increase, Tesco’s
market share & revenue will increase allowing the business to succeed. Another
implication of industrial policy for Tesco is that Tesco will be able to make more
business investments. As sales & profit increases, Tesco will have enough money
to invest in their business. Another good implication of industrial policy is that
there will be less long-distance transportation of goods. Infrastructure will be
provided for goods to be delivered to Tesco quickly. Tesco can be able to sell
products to consumers quickly allowing sales & profit to increase significantly.
A bad implication of industrial policy that will impact Tesco is that it won’t
support Tesco when it competes with other industries around the world. The
reason this may be is that many countries have different industrial policies so it
will be hard for Tesco to know all of the policies which will be time-consuming.
Tesco will have a hard time to adjust their market in some countries in the world.
Some countries such as LEDC countries might not even have an industrial policy
due to the lack of performance of the governments in different countries and the
countries are slowly developing. Consumers who live in those countries will have
a low disposable income due to the increase of unemployment. This will mean
that consumers will not be able to purchase Tesco’s products which will mean
sales & profit will decrease and Tesco will fail expanding their market. Another
bad implication of industrial policy that will impact on Tesco is that employees
will have longer work hours. This will tire employees to the point they won’t work
harder in their job roles. Demand from consumers will decrease which sales &
profit will decrease also. Other implications of industrial policy that will impact on
Tesco are there will be strong discipline of the workers, employees will have
minimum wage, and fines will be given to employees for offensive behaviour
used inside the workplace.
Fiscal Policy- This is a policy that allows a government to increase its tax rates
and spending levels to help the economy grow. The good implication of fiscal
policy that will impact on Tesco is that it can increase demand from consumers
as unemployment decreases. Consumers will have a high disposable income
which they can purchase as many products from Tesco as they want which will
increase Tesco’s sales, market share, & profit. This will allow the business to
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