Government as Stakeholders

The government has a very positive interest in all businesses- other wise it wouldn't be hardly be trying encourage them with initiatives such as regional aid. Businesses create employment opportunities. They pay tax. People who are employed pay tax and don't claim benefits-, which means government gains revenue. British goods can be sold abroad which brings money into this country. People who are employed and earning a wage is more likely to save for their retirement- so are less of a burden on the state when they get older. They spend money, which helps the economy. They are generally happier and healthier people.

If the economy is doing well and individuals feel prosperous, they are less likely to vote for a different political party at the nest general election. I think these are all the reasons why the government takes an active interest in business. The government has a big interest in J-Sainsbury's and Errol Anderson motors. This is because both businesses have to follow all rules and regulation, which the government sets. However, the government is aware that without any regulation some undesirable business activities may take place. Smaller businesses like Errol Anderson motors would be at mercy of more powerful enterprises.

Consumer rights may be ignored. People may be cheated on price. Employees may be treated unfairly. This is way legislation is needed to control the way J-Sainsbury's and Errol Anderson motors are run. The government therefore has a significant influence on both the businesses- as it can make an activity unlawful and therefore effectively control business operations for J-Sainsbury's and Errol Anderson motors. Also interest rates and taxes are controlled by the government which J-Sainsbury's and Errol Anderson motors must pay at the rate, which the government sets.

This influences the business because if the government increase the rates of taxes, Errol Anderson Motors would be affected more then J-Sainsbury's as J-Sainsbury's is a bigger organisation and has more capital to pay of taxes and interest rates. Trends The tertiary sector is the most disparate of all the sectors. Trends in retailing Retailing is seriously affected by changes in consumer demand and this, in tern, is affected by two factors: > The disposable income of consumers > Consumer confidence about the future.

Disposable income is the amount of money you have left after paying tax, national income and essential bills. Confidence in the future is important. If you have a temporary job, which will finish in a week, it wouldn't make sense spending all your money this week, no matter how much you are earning, if however you were in a permanent job with great prospects you would feel "safer" spending your money. J-Sainsbury faces a lot of competition from other supermarkets like Tesco, Safeway and Asda, and the competition is increasing in the tertiary sector.

This can be said for Errol Anderson Motors too as He faces a lot of competition too from other garages like Euromasters and Kwik fit. Competition is increasing in the Tertiary sector so this mean both businesses are constantly under pressure, for example during 1998 and early 1999 Marks and Spencers shocked everyone by announcing a serious fall in profits. However by the middle of 1999 sales were starting to improve, mainly because steady cuts in interest rates gave consumers more money to spend. J-Sainsbury's and Errol Anderson motors have to look out for lot of factors, which can affect them.

For example competition can lead both J-Sainsbury's and Errol Anderson motors to losses. If both businesses start to sell products and provide services at higher prices which can bought cheaper else where with the same quality, the consumer will end up going to other supermarkets where they can buy there products and services at a cheaper price, which will mean the consumer will safe more money. Also J-Sainsbury's must make sure they have a wide-range of products and keep on introducing new products.

Also J-Sainsbury's must keep consumers aware of new products by advertising, in order for J-Sainsbury to sell new products because if the consumer doesn't know about new products they will end up not buying it. Also Errol Anderson motors need to make consumers more aware of any new services they he provides otherwise again the consumer will not know about the new service. Errol Anderson motors can make consumers more aware of new services by doing advertising in local newspapers. I say local newspapers because majorities of Errol's customer are going to be local.