Top-Rated Free Essay
Preview

The impact of UK policies on an organisation

Good Essays
497 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The impact of UK policies on an organisation
A report to understand how the characteristics of the UK economy, fiscal, monetary and competition polices can impact on an organisation.
Within this report I hope determine in detail all the characteristics of the UK economy, government fiscal and monetary policies and how each one effects on the Tesco PLC organisation. I plan to give a clear and comprehensive look into each of the factors which build the UK economy and analyse and evaluate with strong evidence of application to theory throughout the report.
The UK subscribes to a democratic, parliamentary system of governance known as the Westminster system. The structure of the administration ensures that there is an adequate separation of powers between the executive branch, led by the prime minister, the bicameral legislature and the judiciary, and that there is a system of checks and balances in place. The current population of the UK is 61.1 million.
The UK was one of the largest macroeconomys in the world. It was seen to be one of the strongest and most stable economies before 2007, however post 2008 economic deceleration began and the GDP growth rate fell to 0.7%. In 2008, the economy entered into a recession, with a predicted negative growth rate of -4.5% for the following year. (Data monitor Statistics)
The current conservative government’s main economic aims are Economic growth with more goods and services produced in the economy, alongside low inflation, little unemployment with a Fair distribution of income. (HM Treasury) Taxation comes in two forms direct taxation (taxation on income and profits) and indirect taxation this is taxation on expenditure (VAT, excise duty).
The UK government spends in the region of £400bn a year. Over a third of this money goes in welfare benefits such as pensions, unemployment benefit and other forms of income support. The rest is spent on health, education, defence, roads, law and order and on supporting businesses and local communities. (Data Monitor Statistics)
Businesses can benefit direct or indirec

ndirectly from the rest of the spending. Governments supply money in the form of grants, subsidies and tax breaks (paying less tax than you should) to encourage businesses in certain areas of the economy. A business that is starting out, or is going to provide employment in a depressed area may be able to benefit from such help i.e. Tesco.
Tesco is currently the fourth largest retail company in the world (Global Powers of Retailing Report) and is UK’s leading food and grocery retailer. The company operates 4,811 stores in 14 countries worldwide. It operates in the UK, other European countries, the US and Asia. The UK, Tesco's largest geographical market, accounted for 67.6% of the total revenues in FY2010. Revenues from the UK reached £42,254 million ($67,153 million) in 2010, an increase of 2.2% over 2009. (Datmonitor Statistics)
This is a fascinating statistic, which proves why Tesco along many other companies sufferd a hit due to the economic slowdown of 2009. The UK economy contracted 2.4% in the first quarter of 2009, a decline not exceeded in 51 years (Office of National Statistics).

You May Also Find These Documents Helpful

  • Good Essays

    With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? (40 marks)…

    • 941 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    I am required to evaluate the impact of changes in the economic environment on marks and spencer’s in relation to government decisions, policies, spending and economic management…

    • 785 Words
    • 4 Pages
    Satisfactory Essays
  • Best Essays

    The task is to evaluate the ways in which current UK Government polices impact upon your chosen organisation.…

    • 3033 Words
    • 13 Pages
    Best Essays
  • Good Essays

    The central government is responsible for the health and safety of people, they provide health and safety by maintaining and improving the quality of the environment. The government also has the power to make laws for the entire country, in contrast with local governments. However, the Prime Minister (David Cameron) is head of the UK government so he’s responsible for all of the policy and decisions he makes. The central government has the responsibility to create laws unlike other levels of government; this is because if all levels were able to do the same then it would cause great confusion to citizens. One of the central governments is the Ministry of Defence. The MOD is responsible for the Army, Royal, Navy and Royal Air Force; they decide their pay and conditions, equipment and service locations. The Ministry of Justice is also part of the central government, they’re responsible for courts, prisons and probation service. The Home Office is also part of the central government, they’re responsible for police, passports, immigration service, drugs, policies and UK counter-terrorism. Department for Health is also included in the central government, they’re responsible for running the NHS including the ambulance service. The HM Revenue and Customs are another part of the central government, they’re responsible for the collection of taxes. Finally, the Department of Communities and Local Government are the final part of the central government, they’re responsible for the UK’s fire and rescue services by allocating local governments with resources to fund their fire and rescue services. They’re also responsible for local government (non-uniformed) but an essential public service.…

    • 729 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In David Smith's brilliant work, “ Free lunch-Easily Digestible Economics-2008”,he arrives in chapter nine at the issue of paying the bill, which for people is a very unpleasant feeling, but in order for a society to reap the benefits of a prosperous welfare state and the advantages,it presents people have to pay their dues in order for it to work in the long run. And it is here the government plays its most pivotal role. The role of Government is to assure a reasonable and responsible fiscal policy e.g, the means by which government adjust it`s tax rates and its spending levels to monitor and influence an economy, with regard to demand and economic activity.…

    • 340 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Unit 38 M2 D2

    • 1547 Words
    • 4 Pages

    There are different types of taxes such as income tax, VAT, council tax, Vehicle Excise Duty, Air Passenger Duty, Excise Duty and Corporation Tax. Income tax is a direct tax on the income someone has. VAT is an indirect tax, which is on all goods bought in the UK. Vehicle Excise Duty is tax on vehicle owners for spending on road maintenance and new roads. Air Passenger Duty is tax on carriage of passengers leaving the UK. Excise Duty is tax on goods classed as ‘sin taxes’ such as tobacco, alcohol and petrol. Corporation Tax is tax on companies’ profits.…

    • 1547 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    • Domestic (competitors' behaviour, economic performance of businesses in the UK, trends, tax and interest rates)…

    • 1515 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    • Domestic (competitors' behaviour, economic performance of businesses in the UK, trends, tax and interest rates)…

    • 1002 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    The extent to which government are able to exert meaningful control over the economy is subject to the power government has. In most Mixed economy such as the UK, government usually has control over Fiscal policies, which is the use of government spending and taxation to influence the economy, however how much they spend depends on the party that is governing the economy at that time. Traditionally Labour is viewed as “tax and spend” party, whilst Conservative encourages Free trade, deregulation of the economy, and lower taxes. They aim to reduce government spending and national debt. Nevertheless, government has to consider the wider economy and the global financial market before resulting in polices as the policies they implant can result in an economy that is either booming or an economy which is on the verge to bust. Government may lack control over the UK economy, due to their membership with the European Union, which has created many legislation that has made it difficult for the UK government to entrench policies nationally. In additional, Government no longer has control over interest rates, which means they no longer have control over the supply and demand for money but The Bank of England is accountable to government, so if government wishes they could intervene. In this essay, I will outline few of the main reasons that enable government to exert control over the economy, I will also evaluate these points along with reasons that prevent government from controlling the UK economy.…

    • 2197 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    The economic recession in the UK came in the year 2008, and till today if having an impact on the choice of tourist’s destinations, the price of the destination, the length of time that tourists stay in the UK. The recession has effected domestic travel more than it has inbound travel as domestic tourists live in the country and therefore are likely to suffer more effects than an inbound visitor for example.…

    • 2245 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    In UK there are two main levels in the system of the government; these are the Central Government and the Local Government. Apart from this there are also various regional governments and the institutions of the European Union that affect the administration of the system of the government.…

    • 1788 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Tesco in China

    • 1492 Words
    • 6 Pages

    Procedure: to describe the influence of two economic environments on business activities within a selected organisation. Also to compare the challenges to selected business activities within a selected organisation in different economic sectors.…

    • 1492 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    The UK economy can be judged by a number of key indicators mainly sustainable economic growth, low inflation (target 2%), a surplus on the balance of payments and low unemployment. In this question I will explain the effect of cuts in public expenditure by the government on the performance of the UK economy.…

    • 457 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    government and policies

    • 340 Words
    • 2 Pages

    Regional government – the regional movements is where there are 8 different regional assemblies within England and they are:…

    • 340 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Unit 1 P5

    • 960 Words
    • 3 Pages

    There are two very important economic environments that effect Tesco, economic growth and the recession. An economic growth will be good for Tesco as business will be booming, more goods are being produced and profits are increasing. When this happens Tesco becomes a very high profit business and invest in new products or stores which can lead to Tesco being more profitable business wise. Profits are increased during economic growth as customers want more products; they have the money to spend and choose to spend it in Tesco’s. This leads to a much higher product demand, which affects the primary sector – farmers. Farmers will need more animals and more farm hands effectively as they are producing for a large company and if the demands aren’t met they will lose business.…

    • 960 Words
    • 3 Pages
    Satisfactory Essays