Essay
level 3 business unit 38 p2
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This document covers the criteria for P2 - identify how government policies impact on a selected business.
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Government PolicyThis report will move on to identify how government policies affect Mcdonald's. There
are many different types of government policies that have a great impact on
businesses running such as Mcdonald's therefore it is important that Mcdonald's
takes it all into consideration as the impact is huge. The government has to deal with
things such as the economic growth, unemployment and inflation therefore it
packages it all and puts measures in place together to deal with the issues.
Economic Policy
The economic policy is a course of action that is intended to influence/control the
behaviour of the economy. The policy is implemented and administrated by the
government. The decisions in the economic policy are about the levels of the tax set,
money supply, government budgets and interest rates etc. This policy affects
Mcdonald's because if the economy isn’t stable than inflation rates/interest rates may
increase and this would impact Mcdonald as they will lose out on profit if they were
to take a loan from the bank and also the prices of the products will increase which
means they will have to pay their suppliers more and buy their ingredients at a higher
price.
Also if the government increase tax such as corporate tax then Mcdonald's will lose
out on some profit margin as they will have to pay more money to the government. If
the government increase tax on people who are in employment then that will mean
that people lose out on some money as they are paying more to the government, this
may result in them spending more wisely and they might not spend as much money
in restaurants such as Mcdonald's as they may not have much spare money left for
themselves.
Industrial Policy
The industrial policy is designed to enhance and increase the industry in the UK
including raising incomes, low carbon economies/greater efficiency and new
technology. It influences the development of different sectors and it also helps create
a stronger portfolio of national industry. This affects Mcdonald's as this puts pressure
on Mcdonald's to give as much jobs possible at their restaurant to strengthen the
national economy.
Also in line with this policy, Mcdonald's have to at least pay the minimum wage to all
of its employees if not more, this means that a large amount of money will be
distributed to the employees, making investments opportunities more risky as
Mcdonald's may not want to give a promotion as they will have to pay even more
money to the employees.
Competitive Policy
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