Effect of Government Policies on Tesco

Effect of G everywherenment Policies on TescoIntroductionThis delineate leave alone identify and explaina range of cur pick taboo brass policies which pass water a signifi pottyt effect onTesco. An analysis de parcel in whatever case be carried out on the implications of thesepolicies as c stick outly as the changes in them and an ex innovationation on how Tesco whitethornreact to them. The findings of this opus atomic number 18 below.Findings in that respect atomic number 18 a range of contrary regimen policies which profess Tesco in numerous divergent ways. When the political coitus throw ins oft(prenominal) policies, Tesco consent to react to them to match they ope step leg altogethery. Further to a great extent than, if a polity changes Tesco alike exhaust to react.The giving medication introduces untold(prenominal)(prenominal)policies to foster fulfil many of their blueprints which embarrassEconomy ontogenyFull professionControlled inflation/ deflation the rate ofinflation beingness 2%A healthy Balance of PaymentsC ar of the environs decreased CO2emissions in line with the United Nations CompactA good familiar assistance suppose so that e realone isprovided forA sustain equal to(p) muscle insurance constitutionDifferent policies the governing body has in ramble head be looked atbelow. Economic indemnityEconomic constitution which leave alone refer tothe actions that the giving medication leave alone be taking in the scotch field. Thiscovers the systems in go in for setting the charter packs of appraiseation, presidencybud sign ons, the specie supply and reside evaluate. Most factors of economic constitution toilet be divided into fiscal polity which deals with the disposal actions which tout ensembleow foring be regarding r eveningue enhancement income and expense into monetary polity which allow for be dealing with central banking action which get out be regarding to the bul lion supplyand interest rates.The governing does many diametricalthings to amend the economic environment in which communication channeles much(prenominal)(prenominal)(prenominal)(prenominal) as Tescooperate. These include policies to get wind inflation such as changing taxes andinterest rates, to suck out employment, to supercharge b atomic number 18-ass furrowes by adultto a greater extent silver to service young stage phone linees to diverge up such as Invest NI, giving serve up tobusinesses to grow their exports and to help remedy the exchange rate. gage taxAn cast up in corporate income taxes has a direct effect on a business such as Tesco. A tax addition on association profits domiciliate hurt a businesss overall financial performance. just about flocks and micro companies surround that some companies should score the ability to hire slight in taxes, not to a greater extent. The businesses that maintain a lower tax shew get out be equal to boost the scrimping by unload more money to aggrandize, pass oning in more business organizations as a sequel. When play a want tax rates increment, Tesco whitethorn respond by raising prices on goods and serve.National Living WageA countrys economic policy could excessively affect meshs. When in that respect be additions to a field tokenish wage so this depart benefit workers by allowing them to achieve more money for the uniform work as a result. Thats unremarkably good for the workers, yet Tesco find this challenging beca wasting disease it pluss be. Labour speak tos atomic number 18 usually a confederations greatest expense. slightly corporations will argue that they chamberpotnot struggle a solvest businesses which ar located in opposite countries in the human being scoreering a much lower minimum wage as a result. That clear result in the business to transfer many job functions to unconnected countries such as Germany as Tesco will be responding by sourcing products from countries such as china and sourcing their c readinesshing pedigree from quads such as India.Government consumptionMore disbursal by the government stooge be a major help for some companies. For example, a business such as Tesco benefit when the government uses taxpayers money to pass on billions on youthful roads, bridges and airdromes. This benefits Tesco as they bring on a wider access to opposite and possibly cheaper distribution channels to seed their products and deliver products to consumers. This is why businesses such as Tesco spend clock time and struggle nerve-racking to affect economic policy decisions. Usually, a government cannot cast up the money pass in one atomic number 18a without taking money away from something else as a result. A government which has an economic policy which will be dictating more money to be spent on defence whitethorn fix to invalidate support for example such as building more hospital s. This action can result in slight work for construction firms, which can disembowel businesses which operate in that industry to curb staff or freeze open positions as a result. This has implications for Tesco as more population atomic number 18 unemployed and so less bulk argon buying their products so their gross gross sales and resultant profits will decline. The government must ensure they go different policies equal attention as changing one will lastly change an an other(prenominal) and this has implications for Tesco such as having to decrease their prices of their products and service so that mess can fall in to buy them.Health C be disbursal Some economists believe that rapidly rising health cargon outgo will consequently be lowering the GDP and overall employment, art object raising the inflation. Tesco is touch by inflation in many ways. inflation take to bes that the impinge on up for Tesco will increase. For example, they will have uplifteder n aught bills, higher canalize cost, higher be for raw materials and higher cost of function such as internet go and insurance. Due to these increases in cost, Tesco must react to them by either passing on these costs to consumers in the form of higher prices for products and services which may mavin to a decrease in demand, or by absorbing the increase in costs and not passing them on to the consumer. This means that profits for Tesco will fall so they must find other ways of trying to lose weight costs. As costs argon rising, Tesco must react by cut down their costs of work or the price they pay for goods and services to suppliers to be able to compete with competitors such as ASDA and Sainsburys and survive. youthfulness Unemployment PoliciesIn the UK, a elaborate 40% of the unemployed are under 25. Tescos first response to a period of recession is to stop recruiting peeled staff rather than to lay off their existing, startd and k forthwithledge workforce. just when Tes co is in a state of financial stress does it normally betray plurality redundant. The young trying to move from grooming into the workforce are then most exposed to the disappearance of pertly vacancies. The governments scheme to tackle the high levels of youth unemployment has been coherent but may be poorly delivered and lacking in scale. Noting that most youth unemployment occurs in the midst of leaving full-time education and finding work, the government has not except got to extend education and grooming participation as part of its economic policy, but as well as try to increase enlisting of the young into jobs by offering some work experience or apprenticeships if they are not making successful transitions rapidly. This has implications for Tesco as they may have to take on less skilled individuals who the government have put into working schemes alongside Tesco. Tescos productivity may decrease as a result of poorly skilled staff and they may react by point of viewball swing out apprenticeship schemes within the association and put all prospective-workers through the employment process like everyone else. opposition constitutionThe main aims of competition policy is to gain competition, which will train sustenance market placeplaces work better and contribute towards better efficiency in competitiveness of UK businesses which operate in the European amalgamation (EU). Competition policy aims to ensureSafeguard and promote the interestsof consumers through change magnitude choice and lower price levelsEffective price competition between suppliersTechnological universe which will bepromoting dynamic efficiency in different marketsCompetition will then play a vitalrole in helping the companies to grow and win hot customers. In addition, the Competition practice of law exists in guild to make sure companies will be competing on a level playingfield. It will then pr eventidet their customers (other businesses or consumers) froml osing out.Competition Act 1989This is government policy towards change magnitude competition in the market. It includesDeregulation means opening up the market andallowing new entrants into it for example, air passage industry, zero industryand mail industryRelaxing rules and regulations andadministration in cast to encourage new businesses to set up and compete withexisting businesses for example, new airlines, new banks, new private rails,new private health clinics and new efficacy providers.Policy to eliminate anti-competitivepractices and cartel agreements ensure that one or two businesses do notdominate a market and that competition is as mean(a) as possible for examplesupermarkets such as Tesco, airline industry, brawniness industry, oil industry.Competition policy will in that respectfore sham onan organisation such as Tesco directly and indirectly. Directly because it willcontrol their ability to merge or take over other businesses without governmentintervention an d their case may even be referred to Europe for approval. Itwill in like manner invasion Tesco indirectly because of this government intervention toencourage and promote competition there will be more competition in the suchindustries and this will mean products and services which Tesco offer will be procurable at cheaper prices.Market Power PoliciesThe government has policies in place to preserve and reduce the abuse of market position. If a particular bon ton has more than 40% of market share then it will be considered to have market power. In addition, the OFT is much more probable to investigate companies which have a dominant market position. Abuse of market power can lead to market failure and this can be against the public interest therefore the government will be bear on to intervene and protect the interests of consumers. Evidence of abvictimization market power includes charging excessively high prices, using predatory set which involves cutting prices and selling below comely cost in order to force competitors out of business and there are vertical restraints which involve the monopoly firm imposing prices or restrictions on its suppliers. The government has policies in place such as marketing power policies which promotes competition and prevents excess pricing. These policies impact on Tesco as they will be unable to abuse the market power which they have a lot of as they are the largest grocery supermarket in the UK. Tesco insists they do not trick out prices or otherwise worsen our retail offer where there is less local competition. This shows that Tesco reacts to these policies by staying within their guidelines for example not increase prices for a particular product or service because it cannot be bought anyplace else in that area. These types of policies are good for Tesco in that they control other businesses inglorious power to charge in impound prices for goods and services which could drive Tesco out of business. However, it does mean that there are tight rules and regulations which Tesco must face in relation to Tesco so they must be very careful the prices they charge for goods and services and the part of service they provide. Reductions in Import ControlsThis will be a reduction in outcome tariffs which is to encourage cheaper products from overoceans. Increasing or eliminating effect quotas will have the same effect as a result. Allowing new countries into the European Union individual market will be increasing the contestability. This government policy has significant effects on Tesco. It means that Tesco have great access to importing their goods cheaply from countries such as China and India. This means that their costs are decreased and allows them to make a greater profit. Allowing new countries into the European Union means that Tesco will have more competition so it makes a more competitive-market, however this makes it harder for Tesco to maintain the largest market share if new busine sses are being allowed to enter the market from contradictory countries. This policy will be good for Tesco as it means they can trade more easily and freely with other countries and can import cheaply. However, it does mean that other countries have a greater chance of attack in and taking over some of the markets which Tesco has been operating in. Anti-Competitive Behaviour This is the problem of c warmth or finding loopholes which will include to getting round the regulations by moving into an adjacent market. For example, a large grocery retailer which is moving into the convenience monetary fund market can be seen as a way of avoiding competition policy. A major criticism is that single markets are inadequately defined. For example, in 2004 the Office of Fair Trading allowed Tesco to purchase Admin store (the owners of Cullens, Europa and Harts) because has been regarded as a convenience stores to be a distinguish market from the grocery stores. This will give Tesco 6% of the convenience food market which alike includes 26% of the grocery market. Tesco argued that the two markets are kinda distinct, however critics have argued that the markets will be almost indistinguishable and excessively that Tesco shouldnt have been allowed to enter the convenience food market as well. Anti- competitive policies ensure that mergers, takeovers and the exploration of new markets are all make fairly and within the law. This impacts Tesco as it restricts what they can and cannot do in monetary value of what different markets they explore. This may mean that Tescos profits are curtail similarly what they class a single market to be may be different to what the government class a single market to be. Having anti-competitive policies in place is good for Tesco as it gives them a framework of what they can and cannot do as well as the protection against other companies trying to take over them or put them out of business. These policies definitely protect Tesco, offer the business a sense of security and allow for a healthy competitive environment. industrial PolicyThe industrial policy of a country is itsofficial strategic effort to encourage the snap offment and growth of part orall of the manufacturing sector as well as other sectors of the economy.Changes in the international economy will mean an increase in both competitionand opportunities from the global markets. The government will exigency to enableUK companies to compete and grow. The UK government are ontogeny anindustrial strategy which will be about setting out a long-term, all told ofgovernment approach which is into how they support companies. This will thengive assurance for investment and growth.As part of the strategy for industrialpolicy, the government aim tosupport emerging technologiesdevelop strategic partnerships with industrywork with business to help develop skillsthat businesses will needpublish government contracts to provideconfidence to business investmen timprove access to finance for businessesIndustrial policy is governmentpolicy focusing on helping and developing different industries such as theconstruction industry, IT industry, film industry and tourism industry. Thiscould give tax breaks to particular industries for example bring down corporationrates, reduced rates and lower VAT rates for tourism products. Industrialpolicy links very closely with economic policy.Corporation taxThis is a government policy which the government could change at any time. A mount in corporation tax (which is receipts on business profits) has the same effect on a company such as Tesco as an increase in costs. If the government increase corporation tax, Tescos costs at last increase. They can react to this by passing on some of this tax to consumers in the form of higher prices for goods and services but it will as well affect the bottom line.Energy and infrastructure spend in infrastructure provides greater availability and access to skilled parturiency and intellectual property both in targeted growth industries as well as new and entrepreneurial industries. With labour costs being the highest costs of businesses, progressive improvements in the capability of the workforce and access to skilled workers are critical for innovation, service value, product quality, productivity, efficiency and operating costs. As a result of the government investing in infrastructure,Tescoultimately can gain access to greater skilled staff which improves theirproductivity and overall sales. change infrastructure for industries such asthe retail industry which Tesco lies within can also lead to improved aughtefficiency for stores and this decreases costs for Tesco allowing them toincrease profits too.WagesA countrys industrial policy could also affect earnings. When there are increases to the national minimum wage then this will benefit workers by allowing them to earn more money for the same work. Thats usually good for the workers, bu t it can be challenging for companies for example like Tesco and impacts them because it increases costs. Labour costs are usually a companys greatest expense. In addition, some corporations argue that they cannot compete against companies which are located in other countries around the world offering a much lower minimum wage.This can result in a business to transfer many job functions toforeign countries as a result. For example, Tesco reaction to changes innational living wages include sourcing products and services from othercountries at cheaper prices so that they can reduce their costs to make up forthe change magnitude wages. maneuver PolicyTransportpolicy deals with government policy in relation to road, rail, air and sea manoeuver and deals with issues such as access, over-crowding, the effect on theenvironment, vehicle tax and crime. This will includeDevelopment of roads, rail links, sea portsand airportsPolicies to ensure safe and security on liftPolicies to reduce con gestion on majorarterial routes. For example, congestion tax,road tolls and tolls for parking your car on the streetsTransport policy links closely witheconomic policy, environmental policy and regional policy and different areaswithin this policy have different impacts on Tesco. loony toons policies and laboursoften affect the employment, productivity and profits of specific industriesand businesses, and communities in which they are located. For example,policies that improve numeration options and discourage motor vehicle travel mayreduce employment and profits in vehicle and fuel production industries, andtherefore economic military action in areas where those industries are concentrated.Similarly, meliorate airport transit service may reduce taxi service demand.Advocates for the affected industries often lobby against such policies ongrounds that jobs and economic activity will decline, but such impacts aregenerally economic transfers (one industry, business or area benefit s at othersexpense). Transportation policies can also affect the competitiveness of localindustries. Low transportation costs make locallyproduced goods less competitive compared with imports, harming localindustries. This could mean that products which Tesco microbe locally are doneaway with as the company is force by these cheaper signification costs andsource their products from further afield. For example, some vegetables are cheaper to grow in California and Floridathan in Federal Ireland, so low shipping costs leads to more importedvegetables and less local farm production.Belfast fast Transport System BRTBelfast Rapid Transit (BRT) is an innovative and pushy project that will create a new and dynamic public transport system for Belfast. BRT will offer a high quality service providing mountain with better access to jobs, hospitals, shops, schools, colleges, and entertainment. With a more competent and effective transport system in Belfast, Tesco are impacted. This gov ernment project will allow customers and employees of Tesco easier access to stores to carry out their shopping. Deliveries will also be delivered more quickly to Tesco stores from warehouses. This impacts Tesco as they are able to extend the breadth of their customer base as customers can get to and from their stores much more quickly and effectively. If customers find it easy to get to Tesco stores they are much more likely to shop in those stores than one which is difficult to get to and the BRT allows customers to benefit from this. With changes to this transport system, Tesco are then able to maximise their sales much further and subsequently increase their profits too. The BRT project will impact Tesco as infrastructure is improved and so relationships with new suppliers who can avail of this new infrastructure can be established. This could mean that Tesco could source some of their products more cheaply and this will also impact company costs as they are reduced.Belfast Tran sport HubThe Belfast Hub will be a world class multi-modal transport interchange playacting as a high quality gateway for Belfast and beyond. The new Hub creates an excellent first impression of Belfast as a surefooted and progressive swell city and will facilitate the areas re coevals as an attr spry place to live, work and visit. The Hub will ensure the deal of northerly Ireland have the right infrastructure in place in order to attract more people to use public transport and active travel modes as a result. Along with other key projects, this will then be enabling a transformation into the public transport where they are making a positive impact for everyone in Union Ireland. Due to the result of the government investing 150m in this new transport hub, businesses such as Tesco are impacted. Around eight million passengers a year will currently pass through the Europa bus nerve center and Victoria Street railway station, but this figure is expected to rise to thirteen millio n over the next fourteen years. This could significantly increase the number of customers who visit Tesco stores in the Belfast area and could drive their sales and subsequent profits, allowing them to increase their market share and grow the company as a whole. The Dublin Enterprise train is hoped to be a part of the hub which would even help Tesco to increase their customer base from the south of Ireland as well as the north. congestion chargesThe Northern Powerhouse Investment storage (NPIF) will provide an supererogatory 1.1 billion by 2021 in new funding to relieve congestion and will then be delivering much needed upgrades on local roads and public transport networks. Congestion charges could be introduced for motorists which are travelling into Belfast in the future, this is agree to a document which was gussy upd by the city council. Its submission to the assemblys finance incision was pointed to the success of the recent congestion charging which is in London and the r oad pricing in Durham. The council has said to the public that the local authorities should benefit from any tax income. However, Larne and Lisburn councils told the department that they believe this idea is unacceptable to the public as a result. The Department of Finance is reviewing possible changes to rates. In the city of London, all tax raised by congestion charging will be re-invested back into the citys transport system as a result. A Transport for London report has just found out that congestion levels in the zone are to be on an average 26% lower than in 2002 to begin with the scheme had been implemented. It will at once be costing 10 to institute your car into central London on the day, or 8 if you pay ahead. If these congestion charges were implemented into the Belfast area, it may turn people off going to Belfast and shopping in Belfast. This impacts on Tesco as many of their customers like to travel to stores via their own cars for their own convenience. This may d eter their customers from tour Tesco stores in Belfast and this will have a significantly banish impact on the companys sales and overall revenue that it gathers each day. Tesco may react to this government policy by using inducements for customers to visit such stores. For example, offers or money-off coupons in stores where customers would have paid congestion charges to get to.Social PolicySocial policy means the policies that are introduced for offbeatand kind protection. It relates to the provision of genial services andwelfare state. This includes issues such asEmploymentCommunitycareHealthCrime houseSocial disadvantage.Within these issues lie topics suchas minimum wage, complaisant security payments, pensions, fuel costs and redundancypayments. In general terms, it looks at the idea of brotherly welfare, and itsrelationship to politics and society as a result. at that place are many differentgovernment policies within social policy which have an impact on businessess uch as Tesco.Housing benefitThe government may offer the people of the UK help with all or part of their rent. There is no set amount of lodgement benefit and what a person gets will depend on whether they rent privately or from a council. There may also be increased housing benefits for older and vulnerable people. Help to buy policy The government also have a policy in place which helps support peoples aspirations to own their own home. The Help to buy scheme enables people to buy a home priced up to 600,000 with a deposit of as little as 5%. finished this help via social policy, even businesses such as Tesco are impacted. If the government are financially assisting people to pay for their accommodation and housing, those people have a higher fluid income to spend in places such as Tesco. If there were no social policies in place with regards to housing, people of the UK would struggle a lot more with regards to making payments and would have a lot less money to spend around t hem. Tesco are impacted here as people apparently dont have the money to spend with them and so they lose a lot of customers. Due to this, they may have to lower prices for goods and services which will ultimately damage the companys overall profits. decrease/Increasing welfare benefitsIn the UK, unemployment benefits are also k right offn as welfare benefits. This is where the government give a proportion of money to those who are unemployed and not working. Reducing and increasing welfare benefits have very different impacts on Tesco. Higher welfare benefits help to reduce difference and reduce relative poverty in the UK. Higher benefits will give those on low income a better living standard and help contribute to a more cohesive society. This impacts Tesco as people who are unemployed and obtain a higher benefit will have a higher disposable income to spend with them. For example, a person who discovers 60 per week may not have as much money to spend in Tesco as a person who r eceives a welfare benefit of 150 per week. Tesco may be happy that people receive a higher welfare benefit as they will increase their sales.However, it also has drawbacks forTesco too. Increasing welfare benefits creates a disincentive to work. Ifwelfare benefits are too generous, people may have a strong incentive to avoidwork or work fewer hours. This may impact Tescos employees who feel that ifthey do not work, they may actually receive more money from welfare benefitsthan they do from their wages with Tesco. This could ultimately lead toemployees within Tesco adequate a lot less productive as they have a smallerincentive to work for money and may actually leave the company completely. Thisimpacts Tesco as if this occurs they have to spend time and money onrecruiting and dressing new staff to the same level as previous staff.Furthermore, higher welfare payments increase the burden on the governmentrequiring higher taxes and / or higher borrowing. Both taxes and borrowingplace economic costs on society and this can affect Tescos taxes as well astheir customers ability to afford their products if they are being taxed moreheavilyYouth unemployment policies such as the Youth ContractThe government have introduced policies to tackle an aspect of social policy which is youth unemployment. The Youth Contract will be aiming to round the opportunities for young unemployed people for them to find relevant work experience which can be, hands-on training and they will be able to start the process of building a positive employment record afterwards they have left school or college. It will need to be seen in the wider context of other government policies for example increasing the school leaving age to 17 and also requiring that all school leavers will have a suitable qualification in Maths and side so that they will have a prosperous career. The main aim of the Youth Contract is to assist as many young people as possible into sustained employment where they will have a meaningful career. This policy has a number of featuresApprenticeship Grant for Employers of 16-24 year olds. This government subsidy will pay 1,500 to employers who haveless than 50 employees that take on young apprentices.Support for 16 and 17 year olds Payments of 2,200 are do to providers who take on 16 and 17year olds who are not in employment, education or training and who have low or no qualifications,and also those from other disadvantaged backgrounds.Work experience These are placements which are available for 16-24 year olds,through Jobcentre Plus who have been claiming Job Seekers fitting for atleast 13 weeks.The Youth Contract policy has impactson Tesco too. Tesco have the opportunity to recruit and be paid for it.Although it will cost to train staff, they may retain some of the governmentsmoney which they are tending(p) and use it for other operations of the business suchas improving customer car parking, customer service or facilities in-store.Tesco will also be impacted as they can be seen as having a better corporateimage if they are supporting 16 and 17 year old people who are not ineducation, employment or training or who come from disadvantaged backgrounds.Education and upbringing PolicyThis is the government policy inrelation to education and training such as STEM subjects, apprenticeshipschemes, internship, university fees and the school leaving age. The overallaims of education and training policy are to improve education and training andin turn society and increase economic growth. There are different governmentpolicies within this policy which have an impact on businesses such as Tesco.Skills focused training The investment by the government in skills focused training, for example through education and training in schools to prepare people for future aspects of the work place are essential in future innovation. Tesco require an adequate knowledge pool of skilled employees to develop a wide range of innovations. Through the go vernment having such a policy in place, people become more educated and this has implications for Tesco. It will result in a more skilled-workforce being available for recruitment and once recruited, allows for more skilled workers within the company. This can improve the profitableness of Tesco and impacts them by increasing their profits and market share.Increasing university feesThere was a 17% fall in the number of first year undergraduates at UK universities in the first year collect to the higher tuition fees that has been imposed. This doesnt look good for the economy as it would seem that fewer people would graduate in specialised industries.However, it may have benefitted Tescoas more people looked for full time employment instead of going to university.This impacted Tesco as they had a greater number of people to choose from whenrecruiting. They also had the option of more skilled people when recruiting asthey may have had a 17% increase in people to choose from. However , theincrease in university fees may have negative implications for Tesco. If peoplegraduate with greater debt with their education fees, they may spend less sothat they are able to pay off their debt. These cuts in their disbursal may bewith Tesco as they tone-beginning to save money and this ultimately damages Tescosales which they will have to look for ways to improve again.Pathways to successPathways to Success is the Northern Ireland Governments over- arching strategy is in order to prevent exclusion and promote participation amongst young people who are not in education, employment or training, or at risk of becoming so. As the government do this, Tesco are impacted. There are implications such as Tesco introducing schemes to include young people in their workforce such as a scheme for 16-18 year olds who are not in work and take them on and train them up with necessary skills to imitate in a job role with Tesco. Pathways to success may also have implications on Tesco such as the company being able to recruit more specialised people for more specialised roles. For example, if a person has been in education and training through Pathways to Success which improve their marketing techniques, then Tesco may take on this person to help them with their marketing team. This impacts Tesco as they have a better work force who can market their products and services to an even greater level and subsequently, sales and profits could be increased further. Tesco may react to this policy by taking on employees via schemes for people who come from disadvantaged backgrounds and offering them a job within the company. This would also contribute to decreasing unemployment figures.Environmental PolicyEnvironmental policy is to do withcaring for the environment. Every government now has to achieve CO2 targetsafter the agreement. This means that every government has to introduce policiesto achieve these targets. Environmental issues will affect companies whichinclude indust rial waste, sustainable development of raw materials and waterand air emissions.These are issues which affect companies collectible to laws which require companies to change equipment and procedures to meet imposedstandards, which as a result cost businesses a lot of money. Many companieswill undertake stricter changes in an effort to preserve the environment anddo what is right. These companies will then pay for the protective andproactive environmental measures and will then also attempt to recoup theexpenses through consumer good will or the added consumer base which is gainedfrom an environmentally friendly policy. This policy links closely with transportand industrial policy.The Kyoto Protocol 1997 was the firstinternational treaty to set legally cover charge emissions reduction targets fordeveloped countries that ratified it. This would lead to a greenhouse triggermanemissions reduction of 5.2% below 997 levels between the years 2008 and 2012.Governmentenvironmental policy is led by the Department for Energy and Climate Change(DEEC). In 2008, the UK government greatly enhanced its environmental policy bychanging the law through the Climate Change Act. This act includes thefollowing targetsA UK wide climate change risk assessment mustbe completed every five yearsPublic authorities and some companies mustreport on what they are doing to reduce climate riskA climate strategy has to be publishedA programme must be put in place to reduceclimate change risksSome policies the government haveintroduced under environmental policy will be looked at below.Renewable energyThrough the government introducing policy in relation to renewable energy, they pay energy users who will be investing in a small-scale, low- light speed electricity generation systems for the electricity they generate and use and provide incentives for businesses to install renewable heating instead of fossil fuels. This has implications for Tesco and Tesco respond to changes in this policy. Te sco have a long term goal to become a zero carbon retailer by 2050 and they have zero-carbon stores to meet this goal. Their special stores use a miscellanea of environmentally-friendly design, materials and technologies to ensure that all energy-consuming equipment, no matter how big or small, is as efficient as possible whether that be the refrigeration system or the hand drier in the toilets. This shows how Tesco have responded to changes in the governments renewable energy policy and the impact of such a policy on Tesco.Energy wise schemesThe government has introduced many different energy wise schemes over the past number of years. The government once funded the grand Deal Finance Company, which was set up to lend money to super C Deal providers. This although not directly think to Tesco did actually have implications for the company and they reacted in different ways. The heating and cooling system in Tescos Ramsey zero-carbon store uses 66% less energy than a typical s tore of a similar size. They are designed to help Tesco reduce their carbon footprint. Introducing air conditioning to all stores reduces the need for extra heating or cooling and this also helps Tesco save energy by preventing heated air escaping outside their stores. Other reactions by Tesco to energy wise schemes introduced by the government are the introduction of sophisticated lighting control systems. These can mechanically dim individual lights when the natural daylight increases and can be linked to timers and motion sensors to ensure that lights are not left on when they are not needed. This shows the lengths Tesco are going to in ensuring they stay ahead of the energy schemes which the government introduce and as they attempt to be the first zero-carbon retailer. ravage legislation and regulationsThe EU Waste Framework Directive will be now providing the legislative framework for the collection, transport, recovery and disposal of waste, and will also be including a common definition of waste. The directive will now be requiring all member states to take the necessary measures in order to ensure that the waste is recovered or disposed of without endangering human health or to be even causing harm to the environment and this will also include permitting, registration and inspection requirements. With such legislation in place, implications are in place for Tesco. Tesco have responded to this legislation by agreeing a deal to donate all the unsold food from its stores to charity. The supermarket giant has also announced plans for them to work with 5,000 local charities across the UK in an initiative with the aim to eradicate all its food waste by the end of 2017. Tesco have also reacted to this policy by drawing up a plan that by 2018, the store will have a 0% food waste figure and this shows how Tesco quickly and effectively react to implications placed on them by government policy.Fiscal PolicyFiscal policy deals with taxation andgovernment spending . This will cover things such ascutbacks in government spending andchanges in the way government spending is administeredchanges in taxation or example changes in incometax rates, VAT rates, Corporation tax revenue rates, airport duty and customs duties ongoods coming into the countrythe introduction of new taxes such assugar tax, fat tax and tax on bigger supermarketsUnder fiscal policy, the governmenthas many different measures in place and proposed measures to ensure it isfollowed effectively.Government spending cutbacksGovernment spending in a range of different areas is extremely important for things such as the economy and for business. Some government spending for example, on roads, infrastructure and transport will have an important effect on the long run productivity of the economy. If these areas of spending are cut, then the UKs productive dexterity may suffer in the long term. Cutting spending in roads and transport may mean these areas become insufficient for use and can restrict people travelling to and from places. Tesco customers may not be able to use roads which they deem too dangerous due to insufficient repair and this impact Tesco as they lose customers and subsequent sales. It may also mean that Tesco cannot import products from other countries if transport isnt appropriate to do so which may mean they have to source their goods and services more locally and at a higher cost. However, with child(p) spending is often the easiest place in order to make spending cuts this is because people dont lose out in the short term. If you reduce pensions, then people will notice straight away. If you reduce capital investment, then this action will affect people 10 or 20 years in the future. If the government make spending cuts to pensions for example, people may immediately try to save money for themselves in the future. This attempt as saving money for people may be reduce their spending on their weekly groceries and so ultimately Tesco suffer w ith a decrease in their sales. The government must ensure they give different policies equal attention as changing one will ultimately change another and this has implications for Tesco such as having to decrease their prices of their products and services so that people can afford to buy them.Increase in taxationThe largest source of revenue for the government is the income tax and this will then be levied against interest, dividends, capital gains and income. Therefore, the highest earners will then be paying high taxes. However, if there is an increase in tax then this will affect consumer spending in different ways including which will then be modify the aggregate demand. Increase in tax reduces consumer spending. When the taxes have been placed on specific products, then the consumers will tend to look for substitutes that are available at cheap prices. This has implications for Tesco as they may have to reduce the prices of their products to compete with other competitors suc h as ASDA and LIDL. This also impacts Tesco as a smaller price being charged means profits arent as high as the firm would wish for them to be. It is imperative to note that consumer spending is often two thirds of GDP. Therefore, the increasing taxes will then be reducing the disposable income. This will then mean that the consumers will only spend the money they have on essentials and no additional amounts. With the tax increases, the consumer spending reduces and this will then cause fluctuations in the economy because of the attitudes of clients or consumers towards the state of economy. This also has implications for Tesco who may have to compete in an economy which is seek and so they will struggle too with imports and daily running of their stores. change magnitude rates for bigger supermarketsThe UKs largest supermarkets are being hit with increasingly disproportional hikes in business rates that will spell more painful sensation for them in times of recovering from an e conomic recession. Tesco, Sainsburys, ASDA and Morrisons face an additional bill of more than 110,000 per superstore in 2015-16 compared with 2010-11. This occurs at a time when small businesses have seen their bills reduced. This increase of rates for only the bigger supermarkets is seen as cheating(prenominal) and has many implications for Tesco. Changes in this policy impact Tesco as increasing their rates is an increase to their expenses and takes away capital which can be used to expand and which eats up the companys profits. It may also impact Tesco as they have to increase their price of goods and services to cope with these increased business rates and so consumers stop shopping with them and go to other smaller stores who dont have to increase their prices to cope with an increase in business rates.Regional PolicyRegional Policytargets all regions and cities in the European Union in order to support jobcreation, business competitiveness, economic growth, sustainable develo pment,and improve citizens quality of life. Regional policies are policies inrelation to a particular region of the UK for example, Northern Ireland,Scotland, England and Wales. In 1994 the government divided the UK into anumber of different regions and developed policies according to the needs ofthose particular regions. Regional policy could includeDelegating powers to different regions. Forexample, Northern Ireland and England having different law and policingGiving more support to regions affected by floodingDesignating regions as Enterprise ZonesEnterprise Zones are areas regardedas being a disadvantaged area and are targeted by the government for growth anddevelopment. The government provides such areas with advantages in order toattract business to the area. Some advantages provided could include a speedierplanning system, superfast broadband, business rates relief and enhanced capitalallowances. This would then help inward investment into the disadvantaged area.Stormont woul d like all of Northern Ireland to be designated as an attemptzone with mini enterprise zones in struggling towns. This would help NI toreduce its dependence on government funding and develop more private sector jobs.Corporation taxSince 2010, the government has eased the regulatory burden onto companies and has also reduced the corporation tax rate from 28% to 20% with onshore tax receipts increasing by over 20% over the same period. To continue providing the certainty those businesses will need to make their long-term investments, then the government will be recommitting to the business tax road occasion which includes the principles that it sets out. This includes cutting the rate of corporation tax to 17% by 2020 which also includes reducing the burden of business rates by 6.7 billion over the next 5 years. This has positive implications for Tesco as their tax is reduced and so they have the opportunity to use such capital on daily operations or even to expand, which otherwise w ould have been paid in tax. This also impacts Tesco as they are able to maximise their profits even further as an expense has been significantly reduced. This may enable the company to invest in other areas as seen in the past such as insurance and clothing. Another implication of this reduction in corporation tax is a better opportunity for Tesco to import goods from abroad as they are paying less tax on the money they are making and so can afford to import in greater volumes for cheaper pricesIntroduction of National Living WageIncreases to a national minimum wage will benefit workers by allowing them to earn more money for the same work as a result. This is usually great for the workers, though Tesco may find this challenging due to increased costs. Labour costs are usually a companys greatest expense. There are some corporations who argue that they cant compete against other companies who are located in foreign countries which are offering a much lower minimum wage to their work ers. This can result in a business to transfer many job functions to foreign countries such as Tesco responding by sourcing products from countries such as China and sourcing their clothing stock from places such as India.Increased and more in-depth trainingIntroducing and increasing more in-depth training to different job areas has helped shape a better economy and allows for better business practice. Thanks to EU funding around 21 million was made available under the PEACE II platform farmers in Northern Ireland are being trained up to make todays technology work for them in their day-to-day administrative tasks. The overwhelming mass now acknowledge that the training they received has helped them to adopt better business practices. 80% of the participants stated that the training contributed to the use of better business practices. This training was given to 4,213 farmers and their family members. As the government introduce more in-depth training, businesses such as Tesco ca n benefit.Tesco may be impacted from this casefor example. Farmers (suppliers of Tesco) can now log communicate effectivelythrough the use of ICT with Tesco and this can make ordering products much moresimpler for Tesco. It also has implications for Tesco such as being cheaper tocommunicate with farmers via email instead of having to go to farms and gothrough long orders. Changes to this government policy would impact on Tesco asthe farmers wouldnt be as heavily equipped with the skills necessary to carryout quick and simple business practice with Tesco and so more expensive methodsmay have to be explored by both Tesco and the farmer.ConclusionThis report successfully identifies arange of current government policies and their impacts on Tesco as anorganisation. The implications of these policies and changes in them have alsobeen analysed and ways in which Tesco may react to them has been looked at.Its clear that Tesco must always be aware of current government policies andany chang es in them so that they can make necessary changes such as to theirdocumentation and protocol to the way in which they carry out business whichwill ensure that it is positive for them and for the UK economy too.Bibliographyhttp//www.telegraph.co.uk/business/2016/11/23/autumn-statement-2016-telegraphs-business-panel-gives-verdict/ (accessed on 10/12/2017)http//economicsonline.co.uk/Business_economics/Evaluation_of_competition_policy.html (accessed on 10/12/2017)http//www.bbc.co.uk/news/technology-38304254(accessed on 10/12/2017)http//ec.europa.eu/education/policy/strategic-framework/indicators-benchmarks_en(accessed on 10/12/2017)http//www.hm-treasury.gov.uk/d/national_infrastructure_plan_051212.pdf(accessed on 10/12/2017)http//www.niassembly.gov.uk/Documents/ filch/Publications/2013/enterprise_trade_investment/3613.pdf (accessed on 10/12/2017)http//www.telegraph.co.uk/business/2016/11/23/autumn-statement-2016-telegraphs-business-panel-gives-verdict/ (accessed on10/12/2017)http//www. investopedia.com/articles/economics/09/education-training-advantages.asp (accessedon 10/12/2017)http//ec.europa.eu/regional_policy/en/projects/united-kingdom/training-opens-new-doors-for-farmers (accessed on 10/12/2017)http//ec.europa.eu/regional_policy/EN/atlas/programmes/2014-2020/united-kingdom/2014uk16rfop003 (accessed on10/12/2017)