Unit 1 - Task 4 D2 – Bilal Mohammed – Jamal Assiamah
Minimum wage is the lowest amount of wage authorized by the law or government
which is paid to the workers depending on the ages of the workers. For example
there are different wages for different ages such as people aged 18-20 working in
the UK get paid by £5.13. The current minimum wage for a working adult is £6.50 a
hour, but it has been told that the government will increase the minimum wage at
20p extra by 2016.
The minimum wage affects mostly every businesses or organisations, mainly the
small businesses which operated in the United Kingdom. There is around 5.2 small
businesses across the United Kingdom, with around 25.2 million people employed,
as a result minimum wage will have a great effect on the small businesses,
especially if the minimum wage rises because large amount of their earnings go
directly to pay for operating expenses, such as equipment, supplies, lease or
mortgage, credit lines, inventory, and employee wages and benefits.
The business that I will talk about is a small firm called Global convenience store
and the minimum wage will have a huge effect on the operation of Global, due to
the increase of the wage. There is an estimate of 80 employees working at Global
and if the minimum wage increases this will effect Global's operation in so many
ways and I'll be explaining how it will affect it. First of all if the minimum wage
increases this will put a big burden on Global because they will have to pay the
increased wages to their employees as it is the law to follow the minimum wage
legislation. If Global pays their members of staff extra each month certainly adds to
their overheads, and since it’s a legal requirement to pay minimum wage there is
really very little that employers can do but comply with the law. The Increase in the
minimum wage may also encourage members of staff to ask for increases, as they
see the opportunity to earn more for the hours they work. Therefore this means that
if they're going to pay more, they will have to cut down on the employees by
decreasing the amount of workforce, consequently this will affect the operation of
the business as the number of employees has decreased, therefore this will affect
the productivity and service of the business which will affect the overall operation of
Global.
Another factor which will affect the operation of the business such as Global is that,
if the minimum wage increases, simultaneously the prices of the products will
increase too. However this will affect the operation of the business because the
increase of price of the product will impact the customers by making them not
afford it, therefore they will go to different stores mainly the big firms. Competitors
will have cheaper offers and prices on the products which is mainly big businesses
and this will affect the smaller businesses such as Global, evidently this is why
smaller firms are going into bust or closing down because they cannot compete with
the bigger firms when there is a hard time in the economic, social and political
environment. For example Asda and Tesco's have very cheap offers and deals on
their product and this will beat any deals and offers from a small firm. Ultimately if
the price goes up, the number of customers will decrease and this will affect the
Minimum wage is the lowest amount of wage authorized by the law or government
which is paid to the workers depending on the ages of the workers. For example
there are different wages for different ages such as people aged 18-20 working in
the UK get paid by £5.13. The current minimum wage for a working adult is £6.50 a
hour, but it has been told that the government will increase the minimum wage at
20p extra by 2016.
The minimum wage affects mostly every businesses or organisations, mainly the
small businesses which operated in the United Kingdom. There is around 5.2 small
businesses across the United Kingdom, with around 25.2 million people employed,
as a result minimum wage will have a great effect on the small businesses,
especially if the minimum wage rises because large amount of their earnings go
directly to pay for operating expenses, such as equipment, supplies, lease or
mortgage, credit lines, inventory, and employee wages and benefits.
The business that I will talk about is a small firm called Global convenience store
and the minimum wage will have a huge effect on the operation of Global, due to
the increase of the wage. There is an estimate of 80 employees working at Global
and if the minimum wage increases this will effect Global's operation in so many
ways and I'll be explaining how it will affect it. First of all if the minimum wage
increases this will put a big burden on Global because they will have to pay the
increased wages to their employees as it is the law to follow the minimum wage
legislation. If Global pays their members of staff extra each month certainly adds to
their overheads, and since it’s a legal requirement to pay minimum wage there is
really very little that employers can do but comply with the law. The Increase in the
minimum wage may also encourage members of staff to ask for increases, as they
see the opportunity to earn more for the hours they work. Therefore this means that
if they're going to pay more, they will have to cut down on the employees by
decreasing the amount of workforce, consequently this will affect the operation of
the business as the number of employees has decreased, therefore this will affect
the productivity and service of the business which will affect the overall operation of
Global.
Another factor which will affect the operation of the business such as Global is that,
if the minimum wage increases, simultaneously the prices of the products will
increase too. However this will affect the operation of the business because the
increase of price of the product will impact the customers by making them not
afford it, therefore they will go to different stores mainly the big firms. Competitors
will have cheaper offers and prices on the products which is mainly big businesses
and this will affect the smaller businesses such as Global, evidently this is why
smaller firms are going into bust or closing down because they cannot compete with
the bigger firms when there is a hard time in the economic, social and political
environment. For example Asda and Tesco's have very cheap offers and deals on
their product and this will beat any deals and offers from a small firm. Ultimately if
the price goes up, the number of customers will decrease and this will affect the
