Project 2 Case Study: UK Government Policies and Business Strategy

This project analyzes the impact of market imperfections and market failure on entrepreneurship, labor, and financial products, using the tobacco industry as a case study. It examines how the tobacco industry's pricing strategies and government policies, such as advertising bans and tax increases, shape business decisions and overall economic strategies within the UK. The analysis explores the UK government's economic policies designed to reduce tobacco consumption and the resulting effects on business strategies, market dynamics, and public health. The project further investigates the influence of government interventions, including regulations and tax policies, on the tobacco industry's market share and profitability, as well as their broader implications for economic development and public well-being. The document highlights how market failures, such as the health impacts of tobacco use, necessitate government intervention to correct market inefficiencies and protect public interests. The project concludes by emphasizing the importance of strategic planning and adaptation for businesses operating within regulated markets.

Project 2 Case Study

Table of Contents
Introduction.................................................................................................................................................3
Main body...................................................................................................................................................3
Using the case study, explain how market imperfections and market failure can affect entrepreneurship
activity?...................................................................................................................................................3
Explain how market imperfections and market failure affect labour and financial products using
relevant examples?..................................................................................................................................4
Provide a logical interpretation of how the UK government economic policies can shape business
strategy....................................................................................................................................................4
Interpret how UK government economic policies can shape business decisions?...................................4
Conclusion...................................................................................................................................................4
References...................................................................................................................................................4

Introduction
Use of tobacco is increasing day by day due to which various health issues are taking
place in the economy between the young generation. If the prices of tobacco will decrease it will
increase the demand of tobacco in the economy due to which smoking will also be increased in
the economy which can affect the health of the young generation in the economy. If the economy
will continue to use the tobacco products then various health problems will take place in the
economy due to which growth of the economy will also get affected in the market. Tabacco
companies are promoting their product so that their their demand and revenue can be increased
in the market they are attracting the young generation people by providing the various attractive
advertisement to them it has been observed that revenue of the tabbaco industry is more in the
market as compared to other businesses due to which they are earning a huge profit in the
company and affecting the growth of the economy (Hernigou, 2019).
Main body
Using the case study, explain how market imperfections and market failure can affect
entrepreneurship activity?
Market imperfection and market failure can influence the benefit of the business on the
lookout on the off chance that the expansion rate will increment it can influence the interest of
the business in the market because of which income producing force of the business will likewise
get diminished. In the event that there is market disappointment in the business, it can influence
the benefit of the economy on the lookout. business visionary of the field-tested strategies
different exercises in the business so advancement can occur in the business viably in the
business yet in the event that the interest of the merchandise won't be there in the market then it
can influence the efficiency of the business in the commercial center business visionary needs to
foster its techniques in the wake of examining the economic situation so that odds of misfortune
can be kept away from in the business if the offer of the business won't happen in the business
then it will influence the income of the business and will likewise give upper hand to the next
association on the lookout. tobacco industry is expanding its costs because of the expanding
request in the market so more income can be produced on the lookout and more benefit can be
procured in the business. in the event that the business will expand its costs individuals will
purchase these on the grounds that they will foster the need of these items which will
additionally build the benefit of the business in the economy (Cohen, 2019).
Explain how market imperfections and market failure affect labour and financial products
using relevant examples?
Market imperfections and market failure can influence the interest of the business in the
market it can influence the efficiency of the business. if the inventory of the labor and products
won't be there in the market then it can influence the usefulness of the organization because of
which income of the organization will get influenced on the lookout. in the event that the

administrations of the organization won't the prerequisite of the clients then it can influence the
entire income producing construction of the organization on the lookout. income of the tabbaco
industry is more in the market as compared to other industries in the market. because people are
more in the favour of buying these goods and services in the marketplace. if the supply of the
goods and services will get droped in the market then its prices which be raised automatically in
the market due to which its demand in the market will get droped in the market. as per the
observation tobacco and cigrate companies is earning huge profit in the market due the services
which it is providing to the customers in the market. people are in favour of these products due to
which these companies are increasing its tax rate so that more profit can be earned in the market.
there are various firms which are entering in the market which the sale of tabbaco and other
products so that its profit in the market can be increased. Market share of these industries is
increasing day by day due to the demand of the business. there are various rule which is given by
the government for the ban of tabboco and cigratte consumption in the market due to which
demand of these companies can get affected in the market market imperfection and market
failure gives immense rise to the cigratte companies to rise its prices in the market due to which
people are forced to buy the products of the companies as they does not have any alternate so
they buy the goods of the company which expands the benefit of the organization in the
commercial center. in the event that the offer of the business will increment on the lookout, it
will expand the benefit of the organization on the lookout. expanding request of these
organizations can influence the soundness of the economy in the market because of which
different wellbeing related issues will gets created in the market because of which development
of the economy will gets influenced on the lookout. tabboco and smoking can create various
health issues in the market due to various diseases can get develop in the market. if the market
failure of these product will continue then growth of these companies will get decline in the
market (Clayton, 2017).
Provide a logical interpretation of how the UK government economic policies can shape
business strategy
There are various steps which is taken by the government of Uk to reduce the use of
smoking and tabacco in the economy . government has ban the advertising and promotion of
tabocco in the market so that its demand in the market can be fall and health issues cannot take
place in the economy if the tobacco and smoking consumption will continue in the economy at
that point it can influence the efficiency of the business on the lookout. government is arranging
different laws which needs to followed by the economy and the business with the goal that
economy can be saved from the infections. In the event that the association won't keep the laws
which is given by the public authority then different move will be made against the business if
the business won't adhere to the laws and arrangements given by the public authority to then it
can influence the generosity of the business on the lookout. assuming the business needs to get
by on the lookout, they need to design different systems in the market so objectives of the
business can be accomplished in the market with the goal that development of the organization
can likewise occur on the lookout. government has boycott the smoking in the public regions so

open can diminish the utilization of these items different wellbeing compaign has likewise been
dispatched by the organization so development of the economy can happen in the economy
tobacco control plan has also been developed in the market so that it can be reduced in the
market because these products develops various diseases in the individual due health of the
individual can get affected in the market. government is increasing the prices of the tobacco so
that people can reduce the use of these goods in the market and live a healthy life government is
also reducing the manufacturing and sale of smoking in the market so that availability of these
goods can be reduced in the market and development in the economy can take place. Smoking is
falling in Uk as per the observation government has taken the WHO tobacco free initiative to
control the use of tobacco in the marketplace due to tobacco and smoking death rate is increasing
in the economy because people are consuming the these products on high basis so it is important
for the business to control this so that development in the economy can more profit can be earned
in the business. banning the these products are very important for the development of the
economy on the lookout in the event that these items won't be prohibited, it can influence the
improvement of the economy in the market because of which income of the economy will
likewise get influenced in the market in light of the fact that tremendous measure of individuals
are devouring tobacco in the market which is influencing its soundness of the economy on the
lookout assuming the public authority won't make a move against it, it can influence the benefit
of the country (Edwards, 2017).
Interpret how UK government economic policies can shape business decisions?
Legislature of UK is expanding the duty on tobacco items which increment the income of
the organization in the market interest of tobacco industry is more in the market when contrasted
with other industries it overall revenue is also more as compared to other business if the tax rate
will increase it will reduce the use of tobacco in the market due to which government has
increased the prices of tobacco in the market if the prices of these goods will gets increased it
will reduce the sale of the product in the market. if the tax rate will gets increased sale of the
goods will decrease due to which death rate in the economy will also gets decreased in the
market tobacco can cause death in the economy due to which development in the economy will
take place organisation has to plan its strategies accordingly so that various issues in the
economy cannot take place (Parker, 2017). There are various companign which has been
launched by the government of uk so that tobacco use can be reduced in the economy if the use
of tobacco will not be reduced then it can cause various medical problems and income and
development of the economy will likewise get influenced in the market expanding the interest of
other association is additionally vital so that more benefit can be acquired on the lookout
assuming these merchandise will proceed of offer, request of different organizations will fall in
the market because of which benefit of the organization will likewise get influenced in the
commercial center. each association needs to design its methodologies in like manner with the
goal that misfortune in the business can't happen.

Conclusion
According to the above report it has been concluded down that benefit of the tobacco
organizations is more in the market when contrasted with different organizations market
disappointment and marker blemish enables to these organizations to bring their costs up in the
market since, in such a case that the stock of the labor and products won't be there in the market
then it will make the lack of labor and products in the market because of which costs of the
merchandise will be expanding because of the inaccessibility of the substitute costs of these
products will build which will expand the income of the organization there are different advances
which is taken by the public authority to control the utilization of these products in the market so
that more benefit can be acquired on the lookout assuming proposals items utilization won't be
decline, it can influence the development of the economy in the market different laws which is
carried out by the public authority must be trailed by the public authority so development of the
economy can happen on the lookout and benefit of the nation can likewise be expanded in the
marketplace.

References
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Cohen, A., Colodner, R., Masalha, R. and Haimov, I., 2019. The relationship between tobacco
smoking, cortisol secretion, and sleep continuity. Substance use & misuse, 54(10),
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Clayton, R.B., Leshner, G., Bolls, P.D. and Thorson, E., 2017. Discard the smoking cues—Keep
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Feng, Y., Zhao, Y., Li, G., Li, Y., Zhou, J. and Shi, H., 2021. Reducing the nitrate content of
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Edwards, R., Ajmal, A., Healey, B. and Hoek, J., 2017. Impact of removing point-of-sale
tobacco displays: data from a New Zealand youth survey. Tobacco control, 26(4),
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Mialon, M., Swinburn, B., Allender, S. and Sacks, G., 2017. ‘Maximising shareholder value’: a
detailed insight into the corporate political activity of the Australian food
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Caulkins, J., 2019. Legalising drugs prudently: The importance of incentives and values. Journal
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Parker, J., 2017. A Report into the Ethnic Diversity of UK Boards. The Parker Review
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