• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Identify how government policies impact on a selected business - Currys.

Extracts from this document...


Unit 38 P2 Subject: The impact of government policies Introduction The government produces policies that influence the UK economy in order to gain better living standards for the country. The government?s main objectives are: Economic growth, controlling inflation and maintain good employment levels. Fiscal Policy involves changing government spending and taxation. When demand is low the government may lower taxes to increase public spending or increased government spending can stimulate demand. Monetary policy involves influencing the supply of money, by controlling interest rates. Interest rates affect consumer spending and saving which also influences demand and inflation. A rise in interest rates affect businesses, customers may have less disposable income causing a decrease in demand and costs will increase A rise in corporation tax will mean that businesses will have less profit and may decide to cut their costs by making employees redundant or increase their prices in order to make more profit. This will affect unemployment rates if employees are let go. ...read more.


This policy also makes sure that one business does not control a market and that competition is fair. The Competition Act 1998 is used to stop businesses preventing competition like: 1. When two or more businesses agree to sell a specific product or service at the same price 2. Businesses limiting supplies so that demand is driven up to make prices increase 3. Businesses that become too dominant If other businesses in the same market as Curry?s dominated the market this could really affect the amount of customers they get and their profit. Increased competition can help ensure that Curry?s offer their customers the best products at the best prices. Fiscal policy involves government spending and taxation to increase economic activity. If income tax is lowered consumers will have more disposable income, which means an increase in demand, and more sales for Curry?s. They may also employ more people. If income tax is increased it will mean that the government will have more money to spend, it is important to keep a balance between taxation and government spending money as this also affects inflation, employment and demand. ...read more.


Each region will have different issues that need to be addressed and this happens because of regional policy. If there is an area that is suffering and has high unemployment the government may invest in Curry?s expanding to that region in order to create jobs for the people there. Environmental policy ensures that changes to the environment do not have harmful effects on nature, humans and natural resources. The Climate Change Act has the following targets: 1. A climate change risk assessment must be conducted every five years 2. A programme has to be put in place to reduce climate change risks 3. Public authorities and some companies, must report on what they are doing to reduce climate risk 4. A climate strategy has to be published. When expanding their business Curry?s has to take into consideration how their building and what they are building may affect the environment, they may also have to spend money to change their existing buildings in order to positively impact the environment. Conclusion Through time policies are changed, developed and created by the different people in government, these all affect the economic environment and the way businesses operate. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Btec National Business Level 3 Year 1 - Exploring Business Activity

    The key elements of logistics are transport and postal services. Yes Yes How range of functional activities are managed in small and micro businesses Just a business doesn't mean that it shouldn't have specialists. It is not possible for one or two people to handle all of the necessary functions listed above.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    When the economy is booming businesses may have expansion strategies. A recession is when there is a period of decline in the economy, house prices go down, people lose their jobs, it can be difficult to borrow money and generally things are tight for everyone.

  1. External influences on business. At ASDA we have to follow the following employment legislations ...

    each other, by differentiating their product and service, and by seeking to provide better value for money. RECOVERY When the economy is in recovery, this will mean that our income is steady because of a number of reasons. Firstly, it means that any debts that customers have, they will be

  2. This is a detailed business report on Sainbsurys.

    In some highly specialised circumstances private limited companies may trade internationally. Although it is usual for this type of business to trade regionally and perhaps nationally if required. Private limited companies: � Cannot advertise their shares for sales. � Do not have their share prices quoted on stock exchanges � Always end their company name with the word limited.

  1. For this task I have decided to look at how many different changes in ...

    If there was a decrease in house prices, this would do the adverse affect as they feel that is going to carry on decreasing therefore not wanting to buy a house yet as they speculate that it'll be cheaper if they wait.

  2. Business report on J Sainsbury's.

    At least one partner must have unlimited liability. Private limited Company - many private limited company start as sole trader or partnerships and gradually expand to different ownership, mostly it is family members running the business. Benefits o Business can be kept small o Because of the limited liability, the owners never can lose more then what they have invested.

  1. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    products like drinks/ chocolates then the club card can notice this shopping habit and offer discounts/ promotions that they can use in future purchases. This marketing activity has contributed to the success of Tesco?s because customers of Tesco?s have remained loyal ? the reason why is that customers are satisfied

  2. Applied Business. Investigating a business Preston Manor High School

    New laws will affect the school making changes in their aims and objectives; they may have to change their aim to be in the top 5 in Brent. A hypothetical example would be, a new law could be that the top schools will have to provide every subject; this will

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work