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level 3 business unit 38 p3

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This document covers the criteria for P3 - identify the impact of government spending on a selected business.

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Government Spending


This report will now go on to explain what government spending is and how the
government spends its money. The public services such as the central, local and
European level of spending will be discussed and how this impacts Mcdonald's.
Government spending is the distribution of finances within the economy controlled by
the government. It includes all of the government's consumptions, investments and
payments. The government spends money of different parts of the economy to
benefit the country and to benefit certain communities chosen.


Transport

There are many different parts in which the government spends its money to provide
services for everyone. Transport is one thing that the Government spends money on
which affects McDonald's as if there was no money to being spent on transport then
Mcdonald's would have difficulty delivering their goods to their different restaurants
which would affect their business massively. If the conditions of the road are bad
then it will take more time to deliver the goods and roads could be constantly blocked
if it gets really bad which would then affect Mcdonald's as they have to change their
route which could delay them reaching to their destination.

By the government not spending money on the roads/railway roads, there would be
more traffic congestion which could affect Mcdonald's as more time would be taken
to reach the destination and there are more chances of accidents occurring which
would then result in roads being blocked. Mcdonald's employees would also have
problems reaching to work on time if there were traffic jams all the time. This year
the government has spent over 25 billion on transport which shows that Mcdonald's
are less likely to be affected by transport issues.



Education

Education is another government spending that affects Mcdonald's. This affects
Mcdonald's as all organisations want to recruit the best people with the best skills
and this is only possible if the country offers good education. With good education,
employees with have the right skills and McDonald’s would benefit as their
employees will give best customer service and their best performance to the
company. Also jobs constantly change and evolve therefore it is essential that
employees that McDonald’s employ have the learning skills to adapt to changes in
situations that arise.

If the government did not spend money on education then only those people would
educate themselves who could afford to pay the fees, this would then go on to affect
McDonald’s as they would only have a limited amount of choice when recruiting
people, also they might come across people who have the right skills but don't have
the education therefore it is important that people get the best out of the education

, the government gives as basic maths and English is required for problem solving,
common knowledge and good customer service. Mcdonald's also hold personal
details of their customers therefore they need staff who have basic common
knowledge that under the Data Protection Act 1998, they cannot disclose personal
information of someone. This year so far the government has spent over 80 billion
pounds which shows that people are getting education which is good as mcdonald's
will more likely not have problems recruiting new staff.



Welfare

Welfare is another thing the government spend money on. Welfare money is spent to
protect people such as looked after children, care for the elderly and the sick and
disabled. In welfare the benefits that the government pay out to be are also included
and the social services. This spending of the government affects Mcdonald's as their
customers are all people as the restaurant aims to be suitable for every person, any
age. There are some families in which women are single mothers therefore they
need support, also there are lot of unemployed people within the country so they
need benefits to pay for their expenses.

If they did not have help from the government or their benefits were to stopped then
they would have less money in which they would be less likely to go out and spend
money by eating out at restaurants. If these vulnerable people didn't get help from
the government then they would struggle to get money and they would more likely to
save their money and not go to Mcdonald's. This affects Mcdonald's as they will lose
customers if people had no benefits, and it would affect their profit margin and
people would only eat in mcdonald's if they had spare money. The government has
spent over 100 billion pounds on the welfare of people which benefits Mcdonald's as
their customers would have extra money to spend and they are more likely to eat out
from restaurants which will gain Mcdonald's more profit.


Health Care

Healthcare affects Mcdonald's as a business because health care spending is
money that the government spends on health services such as the NHS,
rehabilitative care, ancillary services and medical goods. If money was not spent on
health care then more people would be ill because some people would not have the
money to provide care for themselves such as an operation or medicines.

If people are ill then they are more likely to stay indoors and recover which would
affect Mcdonald's as they would have less people come to their restaurant and eat.
Also if the government did not pay for the health care then people would have very
less spare money as most of it would go to their health care or they would save up
money in case they fell ill then needed to buy medicines or go to the NHS for
assistance.

The money also goes to dentist practise, nursing homes and hospitals. If people paid
for all these expenses themselves they would hardly have any money left for

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