Government Policies

Definition: 

The actions of government (federal, state and local) influencing economic and business activity. The purpose of government policies differ—sometimes to promote certain activity (export volumes), others to reduce it (carbon pollution).

Democratic changes in government take place on the basis of policies—what political parties (Labor, Liberal-National Coalition, Greens) stand for and what they will do to make the country better. 

How it can influence operations:

• Provide financial support for specific uncompetitive industries to ensure business survival and preserve unemployment (Australian car makers) 

• Provide incentives (financial reason for doing something) to invest in technology or develop expertise in a specific area; grants, tax concessions

• Government spending programs (fiscal policy); eg. infrastructure projects

• Securing new trade agreements with other nations (China), granting the opportunity to enter new global markets 

• Issuing quality standards for industries

• New taxation policies that alter the incentives to change / grow businesses

• Environmental policies such as the Carbon Tax (2013) and the setting of the RET (Renewables Energy Target) 

The government influences Marketing, Financial Management and Human Resources too.