Essay
Business level 3 unit 38 p3
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Identify the impact of government spending on a selected business.
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By: rebecca-distinction • 3 year ago
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I will be identifinn the impact oi novernment spendinn on ASDA.Local transport beinn cut will afect ASDA because ASDA’s emplofees that use local transport will not be
able to come to work and thef will be verf late and ii manf staf uses local transport, efciencf will be
low in ASDA as there are no emplofees servinn customers or stackinn shelves. Ii there is onlf a iew staf
servinn customers due to the other emplofees beinn late, there will be a lonn queue and customers maf
not have tme to wait in the queue and thef will thereiore no to ASDAS compettors and due to this
ASDA will lose sales and proft. Also local transport beinn cut will also afect ASDAS customers because
the customers that use the transport will not be able to reach ASDA to do shoppinn especiallf ii ASDA is
iar irom them thef will just no to ASDAS compettors. As the local authoritf care ior the elderlf, the
spendinn on the elderlf is beinn cut and this will afect ASDA because as it is beinn provided bf a private
sector the elderlf will have to paf which means thef will not have as much monef to be shoppinn in
ASDA. Libraries closinn earlf and closinn down afects ASDA because people maf use the librarf to do
their CV to net a job and ii thef cannot do their CV thef will not be able to net a job which means thef
will not have monef to spend in ASDA which means less sales ior ASDA. Also as the local novernment
spends on schools, ii thef cut spendinn on schools, children in the schools maf not net nood educaton,
nood teachinn and nood equipment’s such as computers.
As the novernment nive benefts to people with disabilites, unemplofed and larne iamilies where
parents do not work. Ii this was to net these people will not have anf monef unless thef net a job and
this will afect ASDA as these people are their customers and ii thef have no monef thef cannot shop in
ASDA which means ASDA will not make as much proft. he novernment has a larne defcit rinht now
which means thef are spendinn more than thef are receivinn and thef also borrow to make up ior it.
he defcit is verf much because thef had to save the banks as the banks collapsed. his maf cause
nradual cuts in novernment spendinn such as the novernment cutnn spendinn in pharmacies; this will
afect ASDAS staf ii thef net ill thef will not be able to work ior a while, which means ASDA maf have to
paf more ior the recruitnn and traininn oi new staf. he novernment will cut spendinn so thef can paf
back the defcit, so the countrf does not no into recession. Also ii the novernment cut spendinn
educaton will be afected , ASDAS new staf who do not have nood educaton will not be able to provide
nood customer service ii customers do not understand their Ennlish and also thef will not be able to
understand their job role. he novernment also spend on police and ii thef start spendinn less on police
and there’s less police ofcers, ASDAS stores maf become unsaie and there stores maf net stolen irom
often and ii there’s less police ofers, there’s less criminals netnn caunht. Also staf will not want to
work in a shop which is alwafs beinn tarneted, which means thef will work with compettors, which
causes less efciencf in ASDA as there are not manf staf.
Ii the novernment could not borrow monef, this will afect receivers oi the novernments monef such as
the NHS, ii thef cannot spend monef on the NHS, ASDAS staf will not net care which means thef will
not be able to work and even ASDAS customers will not be able to shop in ASDA ii thef net ill and there’s
no care available. ASDA could close down ii manf oi their staf iall ill with no care and especiallf ii there
customers iall ill. Also the novernment also help charites, ii thef do not help the charites anf more , the
less privilened will not net as much help. Also ASDA sponsor charites such as ‘children in need’, however
ii the novernment stops helpinn these charites ii ASDA is alreadf helpinn thef maf have to raise even
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