Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders.

Topics: Tax, Business, Income tax Pages: 8 (3025 words) Published: September 22, 2013
Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders. Tesco
In all the business in the country like Britain, they have to have this in mind that there are changes that are taking place in the business environment and to the people who maybe the shareholders. These changes can be the political, legal, and the social factors with the business environment and the country. Political factors of Tesco as a retail and a large business in Britain. Political factors are the decisions that are made by the politicians who have got all the powers to run the country and control over people and their business. The political factors have got three different levels that help to run the people, country and businesses. The national level:

These levels consider is all about the political parties that protect the members of the parliament in the general elections. There is a party that is being led by the prime minister who appoints the ministers in charge of the key areas of the government e.g. Health of the people in the country, education, and also the industry which could be the businesses in the country to make sure they are running smoothly. The international level:

Britain is a member of the European Union (EU). This level has got responsibility to make political decisions that increase the effect whatever decisions that done within the members of the states. The local level:

This level consists of councils that are representatives of the population of the other people and make decisions about the local issues on behalf of the other local members. The local level has got all the people who help to set power for the people who are living in the particular area by providing protections to the people who are living area the council. These political decisions involve making choices that affect large numbers of people and their businesses. The decisions that are made by the politicians are making laws that will tend to favour or give chance to some groups at the expense of others. Some of the decisions that can be made maybe a favour the business like Tesco when the law is made / decided that every business will not be paying any taxes with whatever they are doing. That can be favour for the shareholders will be earning a lot from their business. But some decisions that are made sometimes may restrain business, e.g. when taxes of the business is raised this will be some of the down fall of the small businesses because the shareholders won’t be getting profits from what they have started in the business. The business will not be providing good services to the people who are the customers so their needs won’t be satisfied. These political factors have got some impacts factors to the business: Political stability: some times, the political stability favours the business. Within this political stability the political factor level that is used is the national level. This political level will find the way to put its plans into action that the people will have to fellow. The plans at the national level are made public to everyone to know it and they can be of good help to business planning. Tesco as a business can be able to use the government plans to identify the likely changes and how their plans that are made at nation level affect them in their business. This provides business with a degree of faith in whatever they are doing for the next few years for the business that has just been setup. Sometimes is political stability different leadership can be an effect to the business and the people in the country. This is when the elections are being taken in place and the president you hard before changed to another person’s which means all the rules and regulations that run the country or the business will have to change and that can be a bad thing to the people you are heading or the business you will be managing. This is all...
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