Group Presentation: Fiscal & Monetary Policy Impact on Volkswagen

This group presentation analyzes the impact of fiscal and monetary policies in the United Kingdom on the organizational activities of Volkswagen. The presentation begins with an introduction to the business environment and the factors influencing it, including employees, government, suppliers, and investors. It then delves into the roles of fiscal and monetary policies, explaining their mechanisms and objectives, such as influencing tax rates, expenditures, money supply, and interest rates to affect economic health. The presentation covers expansionary and contractionary fiscal policies, detailing their effects on consumer demand, exchange rates, and the economy. It also explores various roles of fiscal policy like resource mobilization, private sector development, and economic stability. The discussion extends to monetary policy, its types, and its influence on inflation, consumption, and economic growth, highlighting how these policies impact Volkswagen. The presentation concludes by summarizing the effects of both policies on the economy and the company, emphasizing the influence of monetary policy and the impact on consumer spending and sales.

GROUP PRESENTATION
ORGANISATION:
VOLKSWAGEN

Content cover
• Introduction
• Role of Fiscal policy in United Kingdom
• Role of Monetary policy in United Kingdom
• Impact of fiscal and monetary policy on UK economy
• Conclusion
• References

Introduction
Business environment is the combination of all internal and external factors.
These factors can include:
-employees
-members of the company
-government
-suppliers
-investors
-creditors and many more.
The main aim of this presentation is to provide an understanding about fiscal
and monetary policy of the United Kingdom which impacts upon
organizational activities of Volkswagen.

Role of Fiscal policy in United Kingdom
Fiscal policy is the means by which a government:
-adjust their expenditures and tax rates to monitor and influence a
country's economy.
-effect the economy using the money supply and interest rates.
The main objective of fiscal policy is to create a healthy and
wealthy economy of nation so that it can benefit companies like
Volkswagen. There are two types of fiscal policy which are used
by the government which are as follows:

Impact of Fiscal policy
-Fiscal policy impacts consumer demand of an organization
such as Volkswagen. High tax rates on automobile decreases
the demand for products of this company.
-Fiscal policy is a tax related policy which affects demand of
consumer by effecting income of consumer. Exchange rate
decreases the import of these cars as exchange rate increases.

Continue..
Expansionary - This is most common and most widely
used policy by the government. In this policy, Govt. either
spends more or cut taxes rate or both which affects
Volkswagen.

Continue..
Contraction - This policy is
opposite of expansionary
policy, as it is rarely used
policy. The main reason
of using this policy is to
stamp out the inflation,
because long term
inflation can have the
same impact on standard
of living as recession has
due to companies like
Volkswagen has to suffer.

Continue…
There are several roles which fiscal policy perform to
develop the economy, which are as follows:
• Resource Mobilisation
• Development of Private Sector
• Optimisation of resources allocation
• Balanced Regional Development

• Economic Stability
• Accelerate the rate of growth
• Incentive to Production
• Reduction of Inequality
Continue…

Role of Monetary policy in United Kingdom
Monetary policy:
This is a macro economic policy which is laid by central
bank of an economy. This policy includes management of
money supply and interest rate along with its demand. This
policy is used by the government for achieving their macro
economic goals of inflation, consumption, growth and
liquidity. Flexible monetary policy is beneficial for
Volkswagen as they can trade easily.

Continue..
There are two types of
monetary policies which
helps in stabilising the
economic cycle and these
types are mentioned
below:
Expansionary monetary
policy – Under this
monetary policy central
bank uses monetary
policy tools to stimulate
the economy.

Continue..
Contractionary monetary
policy – According to this
monetary policy,
government of United
Kingdom decreases the
money supply in order to
increase cost of
borrowing.