M1 - analyse the implications of government policies for a selected business
Now the implications of government policies are going to be analysed in this task
and how that affects Mcdonald's. Government policies are important to Mcdonald's
because as a company they have to follow all policies even though some policies
can affect them positively or negatively.
Economic Policy
This policy is all about the economic growth, employment/unemployment, GDP and
inflation etc. This policy impacts the economy.
The positive impacts this policy could have/ had on Mcdonald's are:
1. Inflation Control
This policy has control of inflation rates therefore prices will not increase. This is
good for Mcdonald's as their customers would be able to afford its products and
have no problem with spending their spare money in the restaurant.
2. Minimum Wage
Every business must pay their employees the minimum wage which means the
employment rates are likely to increase. High employment rates are likely to
result in money coming back into the economy (investment) which will then result
in the growth of Mcdonald's.
3. Business Investments
If Mcdonald's was to make loads of profit and have many customers come to their
restaurant and purchase lots of their products then that will increase their sales
and profit which means that Mcdonald's will have lots of spare money left in their
business which they could invest. They could use them investments to build more
of their restaurants and expand their business, they could buy more suppliers,
products and any other equipment such as new chairs and tables at their
restaurants to improve the appearance and quality.
The negative impacts the economy policy could have/had on Mcdonald's are:
1. Unemployment Rates
If unemployment rates went high and more people were unemployed then the
government would have to take more money out of their pocket to pay for them
and they are most likely to do that by increasing tax which means Mcdonald's
, would have to pay more money to the government which means that they will
lose out on their profit margin. Also high employment rates would mean that
Mcdonald's customers will not have that much money to go out and eat at
restaurants. If customers cut back on their spendings then that would decrease
Mcdonald's profit.
2. Price Policy
Due to this policy, the government has most of the control on the prices that
businesses set on their products when competing in the market. This will impact
Mcdonald's as the some products they sell won't even be worth selling at the
price that they are because the amount they are getting for the product would not
be the same amount of how much they spent on making the product anyways,
however they will still have to sell it at that price because of the price policy rules
and regulations.
3. Tax
Tax is what takes the vast amount of money of most businesses like Mcdonald's.
If tax such as corporate tax was to be increased even more by the government
for whatever reasons then Mcdonald's would lose out on even more profit and
they will have less investment opportunities etc.
Transport Policy
This policy is all the improvement of roads and ensuring good operation as possible.
This policy has a huge effect on Mcdonald's as it is effected in all sorts of ways by
this policy.
The positive impacts of this policy on Mcdonald's are:
1. Delivering goods
The government of UK spend a little bit of money from their budget on transport
such as roads, motorways and railways etc. This impacts Mcdonald's positively
as their drivers will not have difficulty delivering their products and ingredients.
Also as the condition of roads and motorways are good, Mcdonald's is more likely
to get their products and ingredients on time as the drivers will not have much
problem getting to places.If the condition of the road was poor then Mcdonald's
would be late in receiving their products and it was more likely for them to receive
their products damaged or messed up.
2. Reliable transport links
Mcdonald's need to operate efficiently and to do so they need to have reliable
transport links. Mcdonald's needs good transport systems to operate efficiently
and effectively as they have many restaurants across the country therefore it is
Now the implications of government policies are going to be analysed in this task
and how that affects Mcdonald's. Government policies are important to Mcdonald's
because as a company they have to follow all policies even though some policies
can affect them positively or negatively.
Economic Policy
This policy is all about the economic growth, employment/unemployment, GDP and
inflation etc. This policy impacts the economy.
The positive impacts this policy could have/ had on Mcdonald's are:
1. Inflation Control
This policy has control of inflation rates therefore prices will not increase. This is
good for Mcdonald's as their customers would be able to afford its products and
have no problem with spending their spare money in the restaurant.
2. Minimum Wage
Every business must pay their employees the minimum wage which means the
employment rates are likely to increase. High employment rates are likely to
result in money coming back into the economy (investment) which will then result
in the growth of Mcdonald's.
3. Business Investments
If Mcdonald's was to make loads of profit and have many customers come to their
restaurant and purchase lots of their products then that will increase their sales
and profit which means that Mcdonald's will have lots of spare money left in their
business which they could invest. They could use them investments to build more
of their restaurants and expand their business, they could buy more suppliers,
products and any other equipment such as new chairs and tables at their
restaurants to improve the appearance and quality.
The negative impacts the economy policy could have/had on Mcdonald's are:
1. Unemployment Rates
If unemployment rates went high and more people were unemployed then the
government would have to take more money out of their pocket to pay for them
and they are most likely to do that by increasing tax which means Mcdonald's
, would have to pay more money to the government which means that they will
lose out on their profit margin. Also high employment rates would mean that
Mcdonald's customers will not have that much money to go out and eat at
restaurants. If customers cut back on their spendings then that would decrease
Mcdonald's profit.
2. Price Policy
Due to this policy, the government has most of the control on the prices that
businesses set on their products when competing in the market. This will impact
Mcdonald's as the some products they sell won't even be worth selling at the
price that they are because the amount they are getting for the product would not
be the same amount of how much they spent on making the product anyways,
however they will still have to sell it at that price because of the price policy rules
and regulations.
3. Tax
Tax is what takes the vast amount of money of most businesses like Mcdonald's.
If tax such as corporate tax was to be increased even more by the government
for whatever reasons then Mcdonald's would lose out on even more profit and
they will have less investment opportunities etc.
Transport Policy
This policy is all the improvement of roads and ensuring good operation as possible.
This policy has a huge effect on Mcdonald's as it is effected in all sorts of ways by
this policy.
The positive impacts of this policy on Mcdonald's are:
1. Delivering goods
The government of UK spend a little bit of money from their budget on transport
such as roads, motorways and railways etc. This impacts Mcdonald's positively
as their drivers will not have difficulty delivering their products and ingredients.
Also as the condition of roads and motorways are good, Mcdonald's is more likely
to get their products and ingredients on time as the drivers will not have much
problem getting to places.If the condition of the road was poor then Mcdonald's
would be late in receiving their products and it was more likely for them to receive
their products damaged or messed up.
2. Reliable transport links
Mcdonald's need to operate efficiently and to do so they need to have reliable
transport links. Mcdonald's needs good transport systems to operate efficiently
and effectively as they have many restaurants across the country therefore it is
