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
Transcripts - Political, legal and social factors future changes
Unit 1 D2
Lewis Appleton 1 Miss Johnston
I am goingto describe mypredictionsonwhatthe future changesare forthe political,legal and
social factorsthat affectbusinesses.
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
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
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.
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
Anotherlegal factorthatcan have a large effectonTescois a new law beingintroducedincreasing
the precautionstakenforhealthandsafety.Thiswouldmeanthattheywould needtobe extra
careful andmaybe use differentmethodsof carryingout theiroperations. Thiswouldaffectthe
Unit 1 D2
Lewis Appleton 2 Miss Johnston
employerswithinTesco because theywillhave toensure thattheiremployeesare stayingsafe
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.
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