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Business Essay

621 words - 3 pages

P2 identify how government policies impact on a selected business.

Government policy
The government produces a set of policies that are used to develop and influence the UK economy. These policies are:
Economic Policy
This policy is mainly focused to deal with economic growth, unemployment and inflation. Cadbury may have an effect through inflation as inflation means a general sustained increase in price. This could affect them most out of this policy because it may lead to higher costs to bear.
Industrial Policy
This is somewhat as the economic policy but tends to focus more jobs and skills. It is designed to enhance and increase industry in the UK. Cadbury, being a strong multinational and respected firm, is not only based in the UK but has outlets all over the world. If anything this policy does not affect Cadbury because it is already a productive industry based in the UK.
Competition Policy
Competition as a policy has a big ...view middle of the document...

Also, the government charges profit on income which may be a high percentage and the government would be much more beneficial to it than Cadbury. Looking at this, fiscal policy would have dramatic impacts on Cadbury.

Social Policy
The UK government put in place a policy that is for welfare and social protection. This is a direct link to economic environment because it relates to issues such as health, employment, community care, housing, crime and social disadvantage. Cadbury’s main line of production is chocolates. As chocolates are considered unhealthy foods this may affect Cadbury’s sales as many people may cut down on chocolates due to health reasons.
Education and training Policy
Government policy on education has a very large impact on the way that businesses operate and the level of skills in the population. For instance, Cadbury will be affected by this positively because education will be given to the younger generation who will grow up and may end up working at a high post in Cadbury and may broaden its success.
Transport Policy
To ensure that the UK has transport systems the government introduced many methods of transport as a public service, these are
* Road
* Air
* Train
* Shipping
Each of these link back to economic policy and environmental policy. Transportation can help ease Shipment of goods for Cadbury as Cadbury deals internationally. Also, Cadbury can move around within the UK to allocate huge clients such as mega superstore owners to buy their products.
Regional Policy
Regional policies are those that are appropriate to a particular region of the UK. England was divided into a number of different regions in 1994 by the government. Each region developed policies according to the needs of those particular regions, this policy allows them to address to different issues that may occur in the particular region.
Environmental Policy- The industrial and transport policies are closely linked to the environmental policy due to hazards such as pollution and waste. This may slightly disturb Cadbury as government may analyze their movements and means of transportation and ability to reduce waste and dump as Cadbury manufactures and operates its factory in the UK.

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