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Impact of Government Policies

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Submitted By toshiba2015
Words 860
Pages 4
Task 5
M1 – Analyse the implications of government policies on Balfour Beatty.

* Discuss how changes in the levels of priorities of government spending might affect the company. How might managers react to these changes? * An explanation of the multiplier mechanism. * Discuss effects on the firm’s possible expansion plans.

* You should analyse the impact that government policies have on a selected business and the possible reactions of the business to the decisions.

(Word document 2/3 sides of A4)

The table below will help you to structure your work – when you analyse the impact of each policy remember to discuss in terms of government spending priorities and M1 links with P2 and P3.

Policy | Definition | Example (S) | Business ImpactAdvantages and disadvantages | Management Reaction to Policy | Economic Policy | Economic Policy designed to deal with growth, unemployment and inflation to improve standards of living and reduce unemployment. Linked with policies on education, training and skills. | In December 2009, the (then) Chancellor of the Exchequer, Alistair Darling, announced a package of measures to try to tackle unemployment. These included internships and guarantees of places in education or training for every 16 and 17 year old in the UK. This was due to the level of young people being NEET (Not in Employment, Education or Training) exceeding one million people, i.e. 1 in 10 of people aged 16– 19. | An advantage to the business is that they would receive government funding to take on young people. Another advantage would be more staffing to meet demand. A disadvantage could be a relatively inexperienced workforce as a result. This disadvantage is likely to be outweighed by the extra funding and government support to take on these workers. | Balfour could react to this policy by providing apprenticeships and training

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