BTEC level 3 Diploma in Business Name: Daniil Chernat
Unit number: Unit 38 Unit ttle: Business and the Economic Environment
P2 - Government policies
M1 - Analysis of the implicatons of government policies on the Park
Government policies are laws that change in a specifc sittaaon depending on the economy of
the cotntry. For example, government can change how mtch tax yot pay or change
immigraaon laws.
Economic policy
Economic policy refers to economic growth of the cotntry in order to afect specifc areas of
the cotntry. Economic growth normally improves the standard of living. Therefore, people will
go on holidays more ofen, people will be capable of btying more prodtcts and tse more
services. In terms of Combe Haven Holiday Park, economic policy can afect the btsiness in the
negaave way, as tnemployment policy is tsed to redtce tnemployment rates, which means
that there is less opporttniaes for The Combe Haven Holiday Park to fnd new employees.
M1) Unemployment policy is not always good for btsiness, becatse if the tnemployment rate
is low, then this means that Combe Haven Holiday Park might have less people to employ and
wages may have to be high as well. If wages rise, then this means that more people will apply
for the job in Holiday Park and this also means that costs of goods and services for the Holiday
Park will increase as well. When yotr costs go tp yotr profts will decrease. However, if yot
increase the prices of the Holiday Park services, then this means that less ctstomers might
come, as they might tse cheaper services in the same area.
Industrial policy
Indtstrial policy refers to stpporang new indtstry in the UK, as well as trying to encotrage
mantfacttrers to adopt green ways of working. For example, redtcing waste, increasing tse of
solar panels, etc. In addiaon to that, Indtstrial policy might improve commtnicaaon, stch as
government ftnding faster broadband connecaons. This helps btsinesses to commtnicate
qticker with ctstomers, stppliers and other btsinesses. Qticker commtnicaaon can increase
profts and redtce costs.
M1) The Combe Haven Holiday Park can tse indtstrial policy in order to increase the pace of
the broadband connecaon. For example, when ctstomers are btying ackets for holidays, it is
important for Combe Haven Holiday Park to have qtick internet, in order to have qtick
transacaons of money. The Holiday Park can bty services qtickly and ctstomers can book
holidays withott any isstes.
Competton policy
Compeaaon policy is law that prevents btsinesses from becoming monopolies in a specifc
segment. The compeaaon nct 1998 is tsed to prevent anaccompeaave pracaces. For example,
selling prodtcts or services at diferent prices for diferent grotp of ctstomers/constmers or
btsinesses that provide goods and services to btsinesses btt not others. The Combe Haven
Holiday Park can tse compeaaon policy to instre that compeators are operaang fairly.
Unit number: Unit 38 Unit ttle: Business and the Economic Environment
P2 - Government policies
M1 - Analysis of the implicatons of government policies on the Park
Government policies are laws that change in a specifc sittaaon depending on the economy of
the cotntry. For example, government can change how mtch tax yot pay or change
immigraaon laws.
Economic policy
Economic policy refers to economic growth of the cotntry in order to afect specifc areas of
the cotntry. Economic growth normally improves the standard of living. Therefore, people will
go on holidays more ofen, people will be capable of btying more prodtcts and tse more
services. In terms of Combe Haven Holiday Park, economic policy can afect the btsiness in the
negaave way, as tnemployment policy is tsed to redtce tnemployment rates, which means
that there is less opporttniaes for The Combe Haven Holiday Park to fnd new employees.
M1) Unemployment policy is not always good for btsiness, becatse if the tnemployment rate
is low, then this means that Combe Haven Holiday Park might have less people to employ and
wages may have to be high as well. If wages rise, then this means that more people will apply
for the job in Holiday Park and this also means that costs of goods and services for the Holiday
Park will increase as well. When yotr costs go tp yotr profts will decrease. However, if yot
increase the prices of the Holiday Park services, then this means that less ctstomers might
come, as they might tse cheaper services in the same area.
Industrial policy
Indtstrial policy refers to stpporang new indtstry in the UK, as well as trying to encotrage
mantfacttrers to adopt green ways of working. For example, redtcing waste, increasing tse of
solar panels, etc. In addiaon to that, Indtstrial policy might improve commtnicaaon, stch as
government ftnding faster broadband connecaons. This helps btsinesses to commtnicate
qticker with ctstomers, stppliers and other btsinesses. Qticker commtnicaaon can increase
profts and redtce costs.
M1) The Combe Haven Holiday Park can tse indtstrial policy in order to increase the pace of
the broadband connecaon. For example, when ctstomers are btying ackets for holidays, it is
important for Combe Haven Holiday Park to have qtick internet, in order to have qtick
transacaons of money. The Holiday Park can bty services qtickly and ctstomers can book
holidays withott any isstes.
Competton policy
Compeaaon policy is law that prevents btsinesses from becoming monopolies in a specifc
segment. The compeaaon nct 1998 is tsed to prevent anaccompeaave pracaces. For example,
selling prodtcts or services at diferent prices for diferent grotp of ctstomers/constmers or
btsinesses that provide goods and services to btsinesses btt not others. The Combe Haven
Holiday Park can tse compeaaon policy to instre that compeators are operaang fairly.
