Evaluate how future changes in economic, political, legal and social factors may impact on the strategy of a chosen organisation Changes in a number of different factors can affect the way in which the business is run in the future and this could mean that the business has to look into different ways of tackling problems, which would mean they have to forecast what they believe the future is going to be like. Tesco as an organisation is constantly expanding because of the amount of people who need to use the supermarket and need to have easy access, in order to keep this going the business has to forecast changes that will happen in the future so this way they can look at what sort of implication the future could have on the business and they will be prepared for the implications of the future and whether it will need to be changed or not. Economic changes
There are a number of economic changes that could occur in the economy which would mean that the business has to look at the implications that they would have in the future. The business would have to consider looking into what could happen, for example there could be another economic crisis which would mean the economy would go into recession, if the economy goes into recession then inflation would increase and for the business it would mean that they would have to put their prices up and by increasing prices it would mean they would lose custom because the customers won’t be able to afford the prices of the products because of the increased prices due to the higher inflation rate. A recession could also mean the business won’t be making as much profit and if the business isn’t making as much profit then the business needs to look into possible strategies where they could increase the amount of money they are making, but also if they are losing money that means the business isn’t able to grow and will start to saturate and decline because more and more stores will close down, if this happens then the...
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