M1 - Analyse the implications of government policies for a selected business
Introduction
In this report we will be analysing the different implications of government policies for
Balfour and Beatty.
● How changes in the levels of priorities of government spending might
affect the company:
There are many types of spending in reference to the UK government across
Britain.In the financial year 2015-16, total government spending was £772 billion.The
government spends £98 billion on education, £23 billion on transport, £140 billion on
health and £25 billion on housing and environment. For businesses operating in UK,
it is important for them to know the government spendings as accordingly they can
know which field is the best for them to start a new project in.
Government spendings are an important aspect for Balfour Beatty because they are
a construction firm that operate for both the government and also private businesses.
The government also funds Balfour and Beatty in certain parts of sectors such as
health,housing and transport.Therefore they have to accordingly plan projects for the
government according to how much they spend in each field. For example when the
government spent £98 billion on education they built their institution worth £4.4
billion, under the transport category they were awarded £321 million to upgrade the
M25 highway, they built the Queen Elizabeth hospital worth £542m under the health
category and built new student housing facilities for the University of Sussex.
The positive effect of the government spending being cut is that Balfour Beatty will
have to look into private businesses to invest in their business,if they were to
succeed and get private business on board they will be able to charge more for
projects leading them to increase their profit.
Another posotive outcome of the goverment increasing their spending on Balofur
Beatty is that the business will have be able to expand new projects globally and
expand their business further.As well as that by having the goverment taxes would
be good for them as they build the £4.4 billion academy which not only proved for the
students but also created more jobs for the employees too. This will impact them in a
positive way and helped them hire a new workforce with more skills than just
construction based ones. They will have more of a demand in projects, leading them
to have more profit and ending with the manger having a safer job security or maybe
job progression.
A negative effect of government spending getting cuts would be that Balfour Beatty
will have less projects as the government will not be investing new jobs for
them.Therefore Balfour Beatty will have less projects and more people to go around
leading them to make people redundant including the managers and less chance of
progression for them career wise.
1
Introduction
In this report we will be analysing the different implications of government policies for
Balfour and Beatty.
● How changes in the levels of priorities of government spending might
affect the company:
There are many types of spending in reference to the UK government across
Britain.In the financial year 2015-16, total government spending was £772 billion.The
government spends £98 billion on education, £23 billion on transport, £140 billion on
health and £25 billion on housing and environment. For businesses operating in UK,
it is important for them to know the government spendings as accordingly they can
know which field is the best for them to start a new project in.
Government spendings are an important aspect for Balfour Beatty because they are
a construction firm that operate for both the government and also private businesses.
The government also funds Balfour and Beatty in certain parts of sectors such as
health,housing and transport.Therefore they have to accordingly plan projects for the
government according to how much they spend in each field. For example when the
government spent £98 billion on education they built their institution worth £4.4
billion, under the transport category they were awarded £321 million to upgrade the
M25 highway, they built the Queen Elizabeth hospital worth £542m under the health
category and built new student housing facilities for the University of Sussex.
The positive effect of the government spending being cut is that Balfour Beatty will
have to look into private businesses to invest in their business,if they were to
succeed and get private business on board they will be able to charge more for
projects leading them to increase their profit.
Another posotive outcome of the goverment increasing their spending on Balofur
Beatty is that the business will have be able to expand new projects globally and
expand their business further.As well as that by having the goverment taxes would
be good for them as they build the £4.4 billion academy which not only proved for the
students but also created more jobs for the employees too. This will impact them in a
positive way and helped them hire a new workforce with more skills than just
construction based ones. They will have more of a demand in projects, leading them
to have more profit and ending with the manger having a safer job security or maybe
job progression.
A negative effect of government spending getting cuts would be that Balfour Beatty
will have less projects as the government will not be investing new jobs for
them.Therefore Balfour Beatty will have less projects and more people to go around
leading them to make people redundant including the managers and less chance of
progression for them career wise.
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