Impact of Government on The Structure and Operation of a Business Organisation


  • Unit No: N/A
  • Level: High school
  • Pages: 7 / Words 1655
  • Paper Type: Essay
  • Course Code: BM413
  • Downloads: 939
Question :

This assessment will cover following questions:

  • Analyse and discuss information relevant to an analysis of a firms business environment.
  • Discuss the impact of government on the structure and operation of a business organisation.
  • Determine an understanding of the impact of changes in the business environment on business organisation and activity.
Answer :


In order to compete with rivalry it is essential to expand the business globally. With the help of social media platform such as Facebook, Instagram, Twitter and so on business can be expanded globally as well as can reach out to their targeted customers easily. Organization need to frame strong strategies in order to over come with the issues which emerged due to government regulations (Crane and Spence, 2019). This assignment covers, the distinguish risk which are faced by Facebook, Twitter and Instagram because of government regulation imposed on them. Deep study is done how it impact the business function. Various ways are studies regarding how emerging raising economies are providing opportunities to business for global expansion. The importance of fiscal and monetary policies are determined as well as focus is done how they stimulate in economic growth using trickle down economics.

1) Explain The Raising Risk Faced by Facebook, Twitter and Instagram and How They Impact Business Activities.

Various risk factors are faced by Facebook, Instagram and Twitter such as, third party apps, privacy settings, unsecured mobile phone, hacks of account, phishing attacks and scams and many more. These are some of the common risk which are faced by Instagram, Facebook and Twitter while providing their services across the globe. UK governing bodies has designed several law to overcome issues. Example: Facebook faced the risk that customers data were liked to the third party which is unethical. This activities influence the business to a large extent because customers feel insecure and fear to share their personal information on this site. Many of the users blocked their account and some of them stopped using it permanently. Due to which heavy financial loss has been faced by firm. In order to safe guard the rights of the customers GDPR Act is adopted by them so that trust of the customers can be regained (Kurtz and Berston, 2019).

Whereas, Instagram faces the issue related to Trolling. It has been found that many false information are posted on Instagram regarding any context. Organization is adopting Malicious communication Act. In this any kind of letter or other form of communication which is offensive and creates stress or anxiety in the people are considered illegal . Example: Mr. Bean is died was posted on Instagram but this great personality is still alive. This post made their fans sad. Trolling is unethical activity which should not be conducted. This type of troll on Instagram force the general public to react aggressivity as well as create conflict (da Silva Lopes and Tworek, 2019).

However, Twitter faces risk related to phishing attacks and scams. For this UK government as designed law Defamation Act, 2013 where publisher of the post has to pay the damages. Example: Tyler Perry posted their fans to stay way from scams using his using on Twitter. This post build negative image in the mind of the users and they step back to use this sites. They feel insecure while using it because they are not sure whether the post they are reading is true or false. By this number of user are reducing day by day.

2) Illustrate How Emerging Economies are Creating Opportunities For Businesses to Expand Globally.

To better understood how emerging economies are creating opportunities for businesses to expand globally some of the points are explained briefly. Leapfrogging technologies is mostly beneficial for those organization which are working on technologies and are not economically feasible. This emerging economies are creating huge expansion opportunities for businesses operating in UK. As technology are changing tremendously this emerging economics help businesses to change the life of the less developed countries. By implementing modern tools in the firm they can compete with rivalry prevailing in the global market . Example: Tesco is providing Tesco bank services to their customers so that their quarries related to finance can be resolved easily. This services are provided all over the globe. Growing of middle class is another emerging economies and are creating numerous opportunities for organisation to grow in the global market (Lu and Xu, 2019). New ventures and small start-up are creating huge job opportunities for people as they are coming with innovative business idea. By this middle class people living standards are raised. New business create huge job opportunity due to which unemployment rate decreases. Emerging economies are making business financially strong. Example: Adidas is making shoes from plastic gathered from sea. They have creates job for local people top assemble plastic from sea by which poor and middle class people are able to live a much better life. Creating demand for new product. Due to emerging economies customers are demanding innovative products in the market (Dabelko and Conca, 2019). It is providing growth opportunity to many businesses operating in UK. Entrepreneurs are motivated to come up with more innovative business plan so that needs of the customer can be meet. By this more business will be opened which will create more demand for new product in the market. Huge profit can be maximized from the customers which can be further used for development of infrastructure.

3) Discuss Fiscal and Monetary Policies and Understand How Trickledown Economics Helps in Growth

Fiscal policy assist government to keep control on their expenses level and tax rates . As well as aid in monitoring national economy. This affect the business operating in the global market by changing the disposable income general public spend on their daily needs. Through this income gap between poor and rich can be reduced. The main tool of fiscal policy are, spending and taxes. Taxes impact the economy by measuring how much money the governing bodies has to spend in certain area (Stewart-Allen and Denslow, 2019). It provides a idea that how much money should be spend. Example: Governing bodies is trying to spur spending among customers they cut down the taxes to a large extent. By this equity can be promoted across the boundaries of the nation. Additionally, it stabilizes macro economy automatically due to which business can be expanded easily in the competitive market place.

Whereas, monetary policy is stated as the procedure by which bank impact the nation's money supply. There are two types of Monetary Policy which are, Expansionary monetary policy and Contractionary policy. Expansionary monetary policy is adopted in the economy when is faces recession and unemployment problem. It is taken into account to affect the economy of the nation. Some of the examples of Expansionary monetary policies are, purchasing of government securities and decrease in the discount rate. On the other hand Contractionary policy is adopted when central bank understand that it is the right time to stop monetary circulation in the economy (Hair Jr and Brunsveld, 2019). It impact the wealth circulation in an economy that influences the inflation rate and interest rate. Monetary policy directly or indirectly impact business expansion in the international market. It impact on next exports, relative cost of consumption the cost of debt and many more. Examples of Contractionary monetary policy is that if suppose Federal Reserve's target inflation rate is 2%per year and the rate exceeded then in this condition Federal can use Contractionary monetary policy. By this supply of money can be brought down in the economy.

Trickle down economics assist in growth of the economy because it cut down taxes and wealthy are distributed among everyone else. Business are benefited by this because when less taxes are paid less firm are able to grow their business globally. At low rate goods and services are present in the market. Due to which demand of the customers raises because general public are able to purchase the goods and services from their disposable income. Fiscal policy also contribute in the growth of the business it helps in keeping the prices and wages stable in the international market. Business can grow easily as prices of the goods can not be set more according to their need. Stable price and wages helps the company to gain huge profit. The gathered finance is further used by organisation to grow and develop their business among it's rivalry. Trickle down economics is explained as taxes on businesses should be cut down as well as the wealth gathered should be trickle down to everyone as well as invest for the benefit of corporations (Kalitanyi, 2019).

Also read:- Impact of High Performance Work Practices Sample


From the above discussion it can be concluded that government regulations are impacting Facebook, Twitter and Facebook to a large extent. Management of the these organization need to change their policies as per government norms. Firm need to train both employer and employees to get adaptable to the dynamic environment so that organization can sustain in the market over the years. Fiscal and monetary policies help in raising the economic status of the nation because it aid in maintaining the condition of full-employment as well as accelerate the rate of capital formation. To get more details about the online assignment help ask our experts.

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