Unit 1 D2
Lewis Appleton 1 Miss Johnston
Introduction
I am goingto describe mypredictionsonwhatthe future changesare forth...
Unit 1 D2
Lewis Appleton 2 Miss Johnston
employerswithinTesco because theywillhave toensure thattheiremployeesare stayings...
of 2

Political, legal and social factors future changes

I am going to describe my predictions on what the future changes are for the political, legal and social factors that affect businesses.
Published on: Mar 4, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - Political, legal and social factors future changes

  • 1. Unit 1 D2 Lewis Appleton 1 Miss Johnston Introduction I am goingto describe mypredictionsonwhatthe future changesare forthe political,legal and social factorsthat affectbusinesses. Political One of the political changesthatcouldaffectthe operationsof Tescoiscountriesthatare close to each othersuchas Englandand Scotland,if theywere tohave a disagreementitmaybe harderfor resourcestobe transportedbetweenthe twocountries.Forexampleif Tescohadmanysuppliersin Scotlandthentheywill have more trouble acquiringtheirsupplies. The employeeswithin Tescoare affectedbythisbecause theywill have alimitedamountof resourcesavailable if mostof their suppliescome fromScotland. Anotherpolitical factorthatcan greatlyaffect Tescoisa change of electedparty,the reasonthisisa bad effectisbecause itchangesalot of thingand while there isthe same partytheyare able to make predictionsontheirfuture linesof operation.A change of party wouldmeanthatTesco’s future planswill have tobe puton holdor adjusted because the actionsof the new partywouldbe unpredictable.Thiscanaffectthe directorsof a businessbecause itmeansthattheirmainplanscan go drasticallyoutof proportion. The problemwithTescooperatingin bothChinaandthe UK isthat bothhave differentlawsandif theyare tryingto carry out the same or similaroperationsinboth countriesandif changeswere tohappento bothpolitical parties,itcouldbe adifficultthingfor Tescoto combat. Anotherpolitical factorthathasa large effecton Tescoisa rise intaxationforVATand corporation tax.This wouldmeanthattheywouldmake fewerprofitsbecause theirmoneywill be reducedthat theyreceive.A decrease inthistax canalsomake iteasierforbusinessesbutitisunpredictable whenor howit isgoingto change. Thiscan affecteveryonewithinthe business,firstof all the higherpositionsneedtochange their operations sotheyare able tomake more profitto covertheir losses.Alsothe employeeswill have tobe paidlessasanotherconsequenceof fewerprofits.Aswell as thisthe customersmay have to paymore for the products. Legal One of the legal factorsthat couldaffectthe operationsof Tescoisa new bill.There wasarecentbill that wastryingto be passedcalledSOPA andPIPA,these billswere suggestedtopreventcertain operationsthatinvolve copyrightandwouldallow the takedownof anywebsite.Althoughthisbill was rejecteddue tolackof agreementif itwere tobe introducedthenTesco wouldhave totake extraprecautionswithanythingtheydooverthe internet. The peoplewithinTescothat are involved withinternetactivitieswill be greatlyaffectedbythisbecause there will be restrictionsonwhatthey are allowedtodo. Anotherlegal factorthatcan have a large effectonTescois a new law beingintroducedincreasing the precautionstakenforhealthandsafety.Thiswouldmeanthattheywould needtobe extra careful andmaybe use differentmethodsof carryingout theiroperations. Thiswouldaffectthe
  • 2. Unit 1 D2 Lewis Appleton 2 Miss Johnston employerswithinTesco because theywillhave toensure thattheiremployeesare stayingsafe otherwise theycansufferconsequences. Anotherlegal factorthatwill have a large effecton Tescoisthe rise in minimumwage;thiswould meanthat the employeesinTesco wouldhave tobe paidmore moneyinorderto meetthis. Therefore the businesswill make fewerprofitsbecause theyhave topaymore.Theymayalsoneed to increase the pricesof theirproductstocombat thiswhichwill decrease customersatisfaction. Thiswouldaffectthe employerswithinTesco because theywill have toensure thatthe employees are beingpaidthe correctamount. Social One of the social factorsthat couldaffectthe operationsof Tescoisthe increasingpopulationand agingof the population,thismeansthere are more people andolderpeople.Thiswouldmean for Tescothat theyhave lessflexibilityforthe operationsof theirstores astheywill have totake more care withthe olderpeople thatare the consumers.Theywill alsohave totake more care withinthe workplace. If Tescosellsitemsatacounterthenthey will have toadjustbecause olderpeoplemay needtobe talkedtoina differentway. Anothersocial factorthat can affect Tescois a decrease onmoneythatthe governmentspendsto increase education.If lesspeopleare able togo to universitythenlesspeoplehave better qualifications.ThismeansthatTescowill have tolowertheirexpectationsandrecruitlesspeopleas it will be harderforthemto findfullyqualifiedemployees.Thiscanaffectthe people thatare applyingfora jobpositionina Tesco because itreducesthe chance of themgettingthe job. Anothersocial factorthat will have alarge affecton Tescoisthe viewpointsof the population;if they were togo all ecofriendlythentheymayfeelbadabout Tescohavinga highcarbon footprint. Therefore Tescomayhave to use transportvehicleslessandsell differentproducts.Thiswaythe businesscaneithermake amuch lowerprofitortheycan try to combat it.The directorsare affected by thisbecause itmaymeanthat if theycarry outcertainoperationsthentheymaybe lookeddown upon.

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