7.4 Flashcards
analyse the external enviroment :Political and legal
What are government policies on new enterprise allowance ?
This allowance is given to small business in order to encourage self employment and encourages entrepreneurs and retired professionals to volunteers as mentors.
What does the enterprise allowance also include ?
start up loans up to 25,000 and EFG which is enterprise finance guaranteed.
What does EFG mean ?
it allows banks to offer small business that lack security a normal commercial loan .
What is non financial support ?
.Business mentoring coaches , training skills ie free advice and networking opportunities and trade associations.
What is the role of regulators ?
they supervise laws and make sure the business adhere to them and there are more than 90 in the uk , they cover wide range areas , education,healthcare , charities and transport
What is one way the government can protect consumers ?
price controls - industry regulators are asked to limit price increases or set the price charged in the industries.
What is another way the government can protect consumers ?
Regulating the product or services provided , some companies might be tempered to put profit before passenger safety , and regulators can then impose fines.
What are some objectives of regulators ?
finance ,public services, places and process and business play fairly
What are government policies related to infastructure ?
infrastructure is a Social capital ie public trsnport and buildings .
Why is good infrastructure important ?
goog transport links in order to get your product faster and therefore customer satisfaction is good
What is an example of bad infrastructure ?
under investments in education and late and not reliable PT
Government policy on environment
sometimes firms do things that are good for their profits and but leave society worst off.
What are some example of policies protecting the environment ?
green taxes - tax levied on activities that are harmful to the envirmoment.
subsides - a government incentive given to the business ie loans
laws - help stop business be less sustainable
What is business legislation ?
set of rules a business must comply with and a constraint action and threat and opportunity
What are the main roles legislation ?
-prevent unfair competition ,ensure customers treated fairly and prevent unfair competition
types of labour regulation :working time legislation
limits average week to 47 hours , one day off per week, guaranteed annual leave and entiltled to 20 minute break .more motivated employees however struggle staffing costs and reduced flexibility .
types of labour legislation:national minimum wage
different for each agenda illegal to pay less , attract more worker but price increase and higher labour costs
types of labour legislation :national living wage
22+ get higher living wage it boosts employees morale and wages also increase for the business
types of Labour legislation :employment equality
fair treatments and no age discrimination and job ads it creates a wider pool of talents and reduced legal risks and hr training increases and more disputes.
Competition laws
they are pit in place to help prevents colluson price fixing by business getting together and freeing a price to charge fro their productsCMA are regulators for competition
competition laws:
this law is supposed to prevents business into anti competitive practices Ie no cartels , no abuse of power and ensured fair competition
enterprise act 2002- competitor law
strength rules on competition and introduces changes to bankruptcy and consumer production and create fairer business .
competition law -enterprise and regulatory reform
improvs efficiency and makes it easier to grow and simplified regulations and encourages business growth
Environmental legislation policies ?
Environmental protection act 1991 - pollution and noise air controlled and chemical in terms of waste disposed in the air.
The envirmoental act 1995- introduced notion of pollution and reduced single sourced production government agencies
