For example, the ageing population may imply a smaller and less-willing workforce thus increasing the cost of labour. This again will be involved within the employment contract which states the working environment that the employees will be working in within their working days. So, you must always stay up-to-date with such political factors. The political environments which include political stability , government support for different types of organisation, fiscal, direct support, providing infrastructure, enhancing skills of the working population, organisations to support businesses and membership of international trading communities. P6M3 How does political, legal and social factors impact business activities of selected organisations and their stakeholders Nike Political factors: Politics can Nike. They can relate to a number of areas of activity.
The following are the 3 main factors affecting businesses; 1. Some of the support they give is designed for private providers. Legal factors for Tesco Consumer protection laws Consumer protection laws are laws which businesses like Tesco must follow, consumer benefit from these laws. In March of every year, the government release information about the changes of taxation. It maintains transport links such as railways and motorways, this is of course beneficial for trade domestically. Many of these potential 'additional' factors ethical, legislative, environmental for example will commonly be contributory causes which act on one or some of the main four headings, rather than be big strategic factors in their own right.
It seems as though changes in this environment can directly affect company performance. High price vehicles reflect hopefully well paid employees, suppliers and fair trade. A disadvantage for a customer is that if their data is not disposed of properly someone could access their personal details which are highly dangerous as they could do anything they wish with your information. Politics is a process by which groups of people make collective decisions. Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders.
It is therefore Tesco's task to make sure they do not discriminate different races and religion. Legal Factors: Businesses can be affected by many aspects of government policy. There must be written evidence within the contract that the employee signs to say that the employer will make sure that any details given to them will be secured and shared with no one else. The same checklist can also be applied inside an organisation. Submit a copy of the proposed regulation along with your responses to these five questions. Consider what impact this will have on your chosen organisation. You must identify which scale they operate at and what sector they operate in.
This means that Tesco will have less money which they can reinvest into the business. An example of this is that some Christians will not workon Sundays. Some common factors are political, economic, social and. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones. This assignment is asking me to describe the influence of two contrasting economic environments on business activities within a selected organisation. This may require taking action before the legislation comes into effect.
Although this then will change the profitability and finance department of the company as they will then need to change the profit sheets that report back to the business. So when you borrow money from someone, you want to make sure you get the accurate payment. Even in libraries on buses, this wireless connection that is essentially needed for many businesses, education and general public is provided by the government. Taxation has a very important purpose to the government because it helps it to raise revenue and also enables it to discourage many activities that the business do and encourage others by lowing the rates of taxes so that they can be able to start up. The problem with this is that younger workers will generally be able to do more things and help more.
This influences factors like taxes and government spending, which ultimately affect the economy. Examining the twomain types of contract,which are contracts with consumers and contracts withemployees, the business can apply their contracts. The most prominent of the social factors is the alteration in consumer buying habits due to the recession, as many people have a lower amount of expendable income due to the rise in cost of living prices such as food and energy bills combined with lower wages and high level of unemployment. This could be positive or negative depending on the choices made by the political party in power for example they could increase the education budget and allow for further expansion and the creation of new funds to help those enrolled or it could be the opposite and the college may have to deal with further cuts in education. Over various time periods many changes could take place in the society which is relevant for businesses. .
The increasing migrants raised the taxes that covered. Keeping to four fundamental perspectives also imposes a discipline of considering strategic context and effect. This obviously caused the man humiliation and Tesco's received some criticism. This could mean that Tesco might need to take a loan and pay it later with interest, so for example if Tesco has taken a loan from the government which was £1000 and the interest rate was 5%, Tesco would have to pay the government back with £1150 as the £150 comes from the interest. Specifically, political factors have areas including , , , , , and political stability. Demographics usually are an aspect of the larger Social issue. This means you will submit two attachments to the Week 2 Dropbox: 1 a Word doc with the questions and your answers and 2 a copy of the proposed regulation you used for this assignment.
Finally Tescowill need to restrict their manufacturers from setting the price that retailers sell the products for. Businesses also form contracts with individuals and groups outside of the business. They enrol at a higher education institution with the objective of obtaining registered qualifications and successfully complete this qualification. These factors greatly affect how businesses operate and make decisions. Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Tesco may have to look into employing older members of staff to ensure they comply with the age discrimination legislation. First of all there are more people; this means more households and therefore more shopping to run on.
The economic environment affects the business performance. Businesses have many factors which can impact upon success in the marketplace. Proposals, organisational missions and policy development should not widen inequalities, but actively seek to reduce them. For example, interest rates affect a firm's and therefore to what extent a business grows and expands. The company has also benefited from government initiatives in terms of transparency in the global value chain.