Business and the Economic Environment Essay
Business and the Economic Environment
Identify the impact of government spending on a selected businessP4 Explain how both fiscal and monetary policy decisions have affected a selected businessP5 Describe the impact of international factors on a selected business M1 Analyse the implications of government policies for a selected businessM2 Analyse the effects of fiscal and monetary policies for a selected business in terms of the market it operates inM3 Assess the impact of changes in the global and European business environment on a selected businessD1 Evaluate the impact of changes in the economic environment on a selected businessD2 Suggest and justify elements of fiscal and monetary policies that would help a selected business achieve its objectives Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Learner signature Date LEARNING OUTCOMES On completion of this unit you should 1. Understand the impact on businesses of changes in the economic environment 2. Know how government spending impacts on businesses 3. Understand fiscal and monetary policies and the effects on spending 4. Know how the international economy affects UK businesses and competition.
Assignment 1 Date issued27/01/14Deadline Date 10/02/14 Scenario This assignment requires you to consider the effects of a changing economy on a selected business. You will base your answer around a particular UK company which operates in the Service sector. The Davis Service Group provides textile maintenance services in the UK and Europe. This includes linen hire, work-wear rental, dust control mat, laundry and washroom services. The Group consists of two main operating companies each with its own directors and executive team. These two operating companies delegate responsibility and authority to profit centers throughout the Group. Providing essential services enables the company to grow when economic activity is expanding in its various markets. For example, it has recently been growing quickly in Poland. At the same time because the services it provides are so essential to other businesses it manages to maintain sales in times of falling demand.
With the given case study you will need to produce a report which examines how Davis service Group has managed the recent change in the Business Cycle. Task 1 Produce a report describing the business cycle, including explanations of the nature of each stage of the cycle and its impact on the Davis Service Group. Explain what effect an increase of GDP, Balance of Payments and the Ripple effect would have on Davis Service Group. This provides evidence for P1 Explain the effects, of changes in the economic environment on a selected business. Task 2 Using UKs current Inflation rates, Unemployment rates and GDP figure, state how changes affect Davis Service Group. Predict future changes and explain and justify how Davis Service Group can respond to these changes. This provides evidence for D1 analyse the implications of government policies for a selected business. Sources of information The Times 100 Online HYPERLINK http//www.thetimes100.co.uk/case-study–managing-firms-throughout-the-business-cycle–111-360-1.php http//www.thetimes100.co.uk/case-study–managing-firms-throughout-the-business-cycle–111-360-1.php HYPERLINK http//www.bbc.co.uk/news/10613201 http//www.bbc.co.uk/news/10613201 Assignment 2 Date issued24/02/14Deadline Date 28/04/14 Scenario As a manufacturing company, Jaguar Land Rover has borne the brunt of sustainability regulations and the growing costs of compliance.
The carmaker, which employs 15,000 people, including 3,500 engineers at two product development centres in the Midlands, is part of the EU ETS scheme and has signed up to a Climate Change Agreement. Head of sustainability Frances Leedham says One of my objectives is to make environment and sustainability part of doing business. It was unheard of a few years ago, but there is a clear incentive to decarbonise our economy and focus on renewable energy. Across our UK facilities we have set ambitious targets, and by 2012 we aim to reduce operating carbon emissions by 25 per cent, waste to landfill by 25 per cent and water consumption by 10 per cent. So crucial is the companys sustainability agenda to long-term business growth that a 9m fund has been set aside for investment in efficiency measures across the business, targeting areas where the biggest savings can be made. Jaguar Land Rovers paint shops, for example, have been identified as the largest consumer of energy in the whole manufacturing process. By sharing best practice between production sites, the company has implemented more than 50 initiatives-from optimising use of air compressors to closing parts of the paint shops when they are not being used.
These measures have saved 13,200 tonnes of carbon emissions and more than 1.5m in energy costs over the past two years. But Leedham insists smaller schemes have a significant effect, too Things such as lighting, heating and PC shutdown policies are as important as the bigger manufacturing issues. Engaging employees in our environmental strategy is fundamental to achieving sustainability targets. Task 1 The government sets out policies that influence the UK economy. You need to explain what the following policies are and how each policy impacts Jaguar Land Rover in a positive and negative way. Economic Policy Industrial Policy Competition Policy Fiscal Policy Social Policy Education and Training Policy Transport Policy Environmental Policy HINT- Use the Jaguar Land Rover website to gain more information on how Jaguar Land Rover is part of these policies. This provides evidence for P2 Identify how government polices impact on a selected business Task 2 The UK Government has proposed the following changes Spending on education to increase.
Government introduces a programme to cut carbon emissions by 20 Government introduces a lower inflation target of 1.5 The government outlined key changes in the industrial policy the government will NOT support business to introduce new technology. Your task is to analyse the impact of the above changes on your business. You need to examine the information and draw justified conclusions on how the business may react. This provides evidence for M1 Analyse the implications of government policies for a selected business Task 3 Produce an article for The Halesowen College Education magazine, you should include the following headings- Define government spending and how it takes place at different levels. Identify and describe the key areas on which government spending takes place (You should support your description with figures which show the percentage of total government spending allocated to the major areas) Describe how government spending affects your selected business Explain the Multiplier Mechanism in the context of the knock on effects it has on your selected business. This provides evidence for P3 identify the impact of government spending on a selected business Task 4 Outline how Fiscal, (Direct and indirect tax, capital allowances, public finances and the budget), and Monetary, (Interest rates, employment levels and inflation) affect Jaguar Land Rover.
Explain how changes in the above will affect investment levels for Jaguar Land Rover. This provides evidence for P4 explain how both fiscal and monetary policy decisions have affected a selected business. Task 5 Describe how changes in inflation and interest rates affect Jaguar land Rover in a positive and negative way. Use a UK graph to illustrate your answer. Predict future changes in inflation and interest rates and justify what effects it will have on Jaguar Land Rover. This provides evidence for M2 analyse the effects of fiscal and monetary policies for a selected business in terms of the market they operate in Task 6 Suggest and justify elements of fiscal and monetary policies that government could use that would help Jaguar Land Rover achieve its objectives. This provides evidence for D2 Suggest and evaluate elements of fiscal and monetary polices that would help a business achieve its objectives.