External influences in Business
External Influences in Business
Government/EU policies
Governments set up many interventions that guide businesses. Businesses will normally change the way they operate when the government changes these rules and policies. Government economic and market policy may have an influence on the productivity of businesses. Business owners must adhere to regulations established by the governments on a local, state and federal level.
Let’s discuss the potential interventions reasons in markets and evaluate the effects.
Smoking Intervention
TV, press and public advertisements for smoking are banned by the government within the UK. High tax rates are placed on the purchase of cigarettes to discourage people from smoking. In 2007, smoking was banned in nearly all enclosed workplaces and public spaces in the UK. They also promote anti-smoking campaigns and encourage alternatives to smoking such as patches, E-cigarettes and nicotine gum.
These interventions were made to improve public health, protect non-smokers and children, and to help reduce the strain on the NHS by reducing smoking based illnesses.
In this table below we can see how this intervention helped reduce smoking.
1974 - 2011, Great Britain 1974 1978 1982 1986 1990 1994 1998 1998 2002 2006 2010 2011
Men 51 45 38 35 31 28 28 30 27 23 21 21
Women 41 37 33 31 29 26 26 26 25 21 20 19
Alcohol Consumption Intervention
Government backed campaigns raising awareness of the dangers of excessive alcohol consumption are a good example. The government made a move to stop alcohol related adverts being shown during the daytime to minimise exposure to young people and children. Alcohol is one of the biggest behavioural risks for disease and death, for example in 2010 to 2011 there were 1.2 million alcohol related hospital admissions and around 15,000 deaths caused by alcohol. Therefore they are
Government/EU policies
Governments set up many interventions that guide businesses. Businesses will normally change the way they operate when the government changes these rules and policies. Government economic and market policy may have an influence on the productivity of businesses. Business owners must adhere to regulations established by the governments on a local, state and federal level.
Let’s discuss the potential interventions reasons in markets and evaluate the effects.
Smoking Intervention
TV, press and public advertisements for smoking are banned by the government within the UK. High tax rates are placed on the purchase of cigarettes to discourage people from smoking. In 2007, smoking was banned in nearly all enclosed workplaces and public spaces in the UK. They also promote anti-smoking campaigns and encourage alternatives to smoking such as patches, E-cigarettes and nicotine gum.
These interventions were made to improve public health, protect non-smokers and children, and to help reduce the strain on the NHS by reducing smoking based illnesses.
In this table below we can see how this intervention helped reduce smoking.
1974 - 2011, Great Britain 1974 1978 1982 1986 1990 1994 1998 1998 2002 2006 2010 2011
Men 51 45 38 35 31 28 28 30 27 23 21 21
Women 41 37 33 31 29 26 26 26 25 21 20 19
Alcohol Consumption Intervention
Government backed campaigns raising awareness of the dangers of excessive alcohol consumption are a good example. The government made a move to stop alcohol related adverts being shown during the daytime to minimise exposure to young people and children. Alcohol is one of the biggest behavioural risks for disease and death, for example in 2010 to 2011 there were 1.2 million alcohol related hospital admissions and around 15,000 deaths caused by alcohol. Therefore they are
Bibliography: Heidi Owens, A Natural Step Case Study, http://www.naturalstep.org/en/usa/ikea , 29 Nov, 2013 Geoff Riley, AS Market Failure, http://www.tutor2u.net/economics/revision-notes/as-marketfailure-government-intervention-2.html, 30 Nov, 2013 Frank Williams, The Effects of Government Policies on Businesses http://smallbusiness.chron.com/effects-government-policies-businesses-65214.html, 29 Nov, 2013 http://www.corerfid.com/technology/TechnologyIssues/IssuesPrivacy.aspx 30 Nov 2013 29 Nov, 2013 Jane Ellison MP, Public Health https://www.gov.uk/government/policies/reducing-smoking, 29 Nov, 2013 Alcohol and young people - the law https://www.gov.uk/alcohol-young-people-law, 29 Nov, 2013 National Minimum Wage rates https://www.gov.uk/national-minimum-wage-rates12, Nov, 2013 - NOTE: This assignment is 1153 words long.