Describe how political, legal and social factors are impacting
upon the business activities of the selected organisations and
their stakeholders.
Tesco and NHS.
Political:
Political factors impact the business activities. They are also factors that are
connected with the government and its activities. Politics affect organisations
due to the government’s rules and regulations that they and their customers
have to obey.
They also affect the stability and success of countries and market place. Political
factors can create opportunities for the organisations and also place obligations
on organisations.
The government is responsible for businesses that are in the public sector. This
means the government pay for the losses and debt. This means Tesco is able to
grow successfully and not have to worry about having to pay any debts. If Tesco
did not run by the laws that have been placed in the political factors by the
government then Tesco would not run efficiently and be as successful as it is
now. By following the rules it ensures the business is stable and know what they
are doing and providing their customers with.
Examples of political factors are wages, opening hours and payments. One
common political factor is shops closing early on Sundays.
Furthermore, with the NHS it is different as the National Health Service is run by
the government the taxes the community pays is to fund the NHS for them. If the
government did not collect tax the NHS would not be free and it would be hard to
get treatments and surgeries done, as they would cost an extreme amount of
money as well as the expensive machines.
Another important political factor is employment policies such as minimum
wage, anti discrimination laws and tax. If these laws had not be pursued then this
would not be fair for the staff as the NHS works very hard to take care of
patients, however they do not get paid enough as the NHS has got too expensive
to fund so the tax has gone up and this means the products in Tesco have
increased and meaning customers are having to spend more and pay higher tax
rates as well as Value Added Tax (VAT)
Legal:
Legal factors influences are welfare legilisation, employment law, and health and
safety and consumer protection.
A health and safety policy is a statement by an organisation explaining the
company’s assurance for the protection of the health and safety of their staff and
the surrounding environment. It is essential the management regard their health
and safety in all aspects. If Tesco does not provide their staff with health and
safety procedures and support they could afford a loss and if something happens
they would have to pay compensation. This is also applied to the NHS and its
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