Essay
level 3 business unit 38 p2
- Institution
- PEARSON (PEARSON)
This document covers the criteria for P2 - identify how government policies impact on a selected business.
[Show more]
3 reviews
By: timzfb10030 • 4 year ago
By: michaelĀğ1 • 5 year ago
By: barbaracardoso98 • 6 year ago
Content preview
Government PolicyThis report will move on to identify how government policies affect Mcdonald's. There
are many different types of government policies that have a great impact on
businesses running such as Mcdonald's therefore it is important that Mcdonald's
takes it all into consideration as the impact is huge. The government has to deal with
things such as the economic growth, unemployment and inflation therefore it
packages it all and puts measures in place together to deal with the issues.
Economic Policy
The economic policy is a course of action that is intended to influence/control the
behaviour of the economy. The policy is implemented and administrated by the
government. The decisions in the economic policy are about the levels of the tax set,
money supply, government budgets and interest rates etc. This policy affects
Mcdonald's because if the economy isn’t stable than inflation rates/interest rates may
increase and this would impact Mcdonald as they will lose out on profit if they were
to take a loan from the bank and also the prices of the products will increase which
means they will have to pay their suppliers more and buy their ingredients at a higher
price.
Also if the government increase tax such as corporate tax then Mcdonald's will lose
out on some profit margin as they will have to pay more money to the government. If
the government increase tax on people who are in employment then that will mean
that people lose out on some money as they are paying more to the government, this
may result in them spending more wisely and they might not spend as much money
in restaurants such as Mcdonald's as they may not have much spare money left for
themselves.
Industrial Policy
The industrial policy is designed to enhance and increase the industry in the UK
including raising incomes, low carbon economies/greater efficiency and new
technology. It influences the development of different sectors and it also helps create
a stronger portfolio of national industry. This affects Mcdonald's as this puts pressure
on Mcdonald's to give as much jobs possible at their restaurant to strengthen the
national economy.
Also in line with this policy, Mcdonald's have to at least pay the minimum wage to all
of its employees if not more, this means that a large amount of money will be
distributed to the employees, making investments opportunities more risky as
Mcdonald's may not want to give a promotion as they will have to pay even more
money to the employees.
Competitive Policy
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller princessdee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.04. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78998 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now