Abdulalah Al-Jobore
Unit 38 - Business and the economic environment
M1
M1 Analyse the implications of government policies for a selected business
In this task, I will be analysing the implication of some the government policies for Jaguar
Land Rover including the positive and negative implication on the business. The UK
government has produced a set of policies to influence and develops the economy of UK.
The term ‘government policy’ is used to describe any course of action which aims to change
a certain situation in order to make a real life change that helps UK to become better
country. The government uses these policies to deal with a wide range of issues within the
country.
The majority of impactions on Jaguar land Rover come from Economic policy. One of the good
implications of economy policy for Jaguar land Rover, is that it will helps the government to control
inflations so prices will not raise too much that consumer cannot afford to but the company
products such as their cars and vehicles as well as other products, therefore means the consumer
will be able to buy the products. Controlling the unemployment rates will be considers as one of
these good implication of economic policy as it allow the rate to be decreased and aims to prevent
the unemployed people and improve the economic as. This therefore means that individuals are
bringing in an income, the demand of products and goods and service are increased as people will
find a suitable job to earn money to be able to purchase goods from companies such as Jaguar Land
Rover. As along as Jaguar Land Rover have increase in sales and products’ demand, the company will
have higher profit leading them to become more successful as well as to expand their business. As
sales and profits are increase by the increase in the demand for products and services by the
customers, Jaguar Land Rover will have enough money to invest more in the business.
However, this does not means that the government policy for economic has to be only positive for
the Jaguar Land Rover, this because there are some other negative implications alongside with
positive once which could have great impact on the business. Sometimes, the economics of the
country could face falling the economic rates or in sometime it could face a recession where
everything is decaling. This because one the economic starts falling, and as it is interlinked with the
unemployment rates, this will have a great impact on individuals as they there will be fewer jobs
available for people to find and to earn money from. This will lead to have less spending as
consumer will have no enough money to purchase certain products expects the necessities of life.
Therefore, as a result of this Jaguar Land Rover might have a great fall in the sales of products and
service as well as profit, and also they might not be able to afford the government taxes such as VAT
and so on. Although that Jaguar Land Rover is one of the leading companies in their carmaker
industry, but in case of the economic is falling, the company might face bankruptcy. In addition to
this one the negative implication is the inflation, as if the government stops controlling the inflation
rates, then everything will goes up, from incomes to prices and to demand of products and services.
Therefore, when inflation goes higher, the economy cycle might reach its highest point which is
known as boom/peak. As the demand increase, the prices of supply and manufacturers will increase,
resulting in the inability for Jaguar Land Rover to afford, as it will be expensive for them buy. This will
have a dramatic decrease in the productively of Jaguar Land Rover in producing their cars and
vehicles as well as other products.
Equally important, industrial policy have very important implications on the business. It refers to the
government’s strategic effort to encourage and enhances the development and growth of the
industry sectors in the economy. It identifies any type of selective intervention or the UK
government policy, which intends to changes the structure of production towards sectors that
government, believes to offer better prospects for economic growths. The industrial policy produced
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