M1 - Analyse the Implication of Government Policies for Tesco and the Possible Reactions of the Business to Government Decisions. What Actions the Tesco Would Take Based on the Policies?

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M1- Analyse the implication of government policies for Tesco and the possible reactions of the business to government decisions.
What actions the Tesco would take based on the policies?
What the government expect the businesses to do?
Possible reactions of the businesses to the government policies?
What would businesses do for the changes the government makes?
Economical policy
Environmental policy
health policy
competition policy
The economical policy affects Tesco’s.
The possible changes the government could make are:

* A rise is co-operation tax
* A rise in Interest rates
In order to take action Tesco’s could pass some of this tax to its customers charging higher prices for the goods/services.
If interest rates start rising, this could be a downfall for the business and customers will reduce their expenditure. This depends if Tesco’s takes a loan out if it is struggling but because Tesco’s is a global organisation, they probably wouldn’t need to.
If any of the problems do , the possible reaction may be that they may request the government to reduce tax/interest rates because businesses may not be able afford it and wouldn’t be doing as well as it was before.

The environmental policy affects Tesco’s.
Environmental concerns:
* Carbon emissions
* Sustainability
* Complying with environmental laws
Tesco’s is working on reducing emissions by 2020 and they can do this by reducing carbon footprint of their supply chain by 30%.
Having sustainability in the business is better because you’re less likely to have a negative impact on the environment
Tesco’s may do this by having a wide range of suppliers to improve their supplier or may switch to suppliers that are more sustainable.
The health policy affects Tesco’s.
This policy requires every business to have a safe environment for their employees. Have good working conditions…...

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