Analyse how political, legal and social factors have impacted on the two
contrasting organisations. (M3)
Sainsbury’s
Political impacts – Political stability is usually defined as the state of peace that is normal
experienced in a country from the activities from the government and also the government
in this situation will make decisions an keeping the best interest in mind for people. For
Sainsbury’s the political factors in the UK have a great influence on the performance of
Sainsbury’s. Currently in the UK, the government debts and the consumer debts are
relatively high. To overcome this, they pressure the public more and try get every single
penny to pay the government’s debt. This impacts the customer’s attitudes and therefore
business conditions experience great pressures. Sainsbury’s not only have to go through
these market conditions but they have to think of strategies to carry on going. Although that
political factors are not favourable, Sainsbury’s has been able to sustain a steady growth due
to its long heritage of offering great product quality at competitive prices.
Legal impacts – The legal impacts for Sainsbury’s are that they must follow the law and an
example of this is the trade description act, this is where the product most be described
accurately otherwise it can cause an issue and an example of this the big issue with meat
earlier this year, so it is extremely important that you describe the product well and
accurately if not then the trading standards will have no other choice but to get involved.
Consumer is when a group of laws and organisation have designed to ensure that the right
of consumers, these are put in place to hopefully prevent businesses that engage or are
planning or engaging in fraud or specified unfair practices to try and gain or taking an
advantage over competitors. Another legal impact and the most important is Health and
safety standards. For all new workers they will have a full day of induction before they are
allowed to start their job. They are also shown around their work place and they are also
shown the areas that they won’t be allowed to go due the dangerous machinery. Overall,
the legal frameworks are where the business chooses the way it operates, this will then
determine who has what role and share to the business, this will also determine the
relationships between investors, employees and customers.
Social impacts – The social impacts that Sainsbury’s may face are the difficulty to recruit the
right people for the job in the stores or the offices depending on where they will be based,
also most of the workers that are in the stores are unskilled workers on the minimum wage
given. Sainsbury’s is also a company that is a great company to bring business and the
charity sector closer together. They love giving back to their neighbours and supporting
charities such as Comic Relief and The Royal British Legion. Sainsbury’s are aiming to
generate over £400 million to charitable causes by 2020. In the end, Sainsbury’s like to
support their local community and that they have done for several amount of years and one
example was when they raised £2.3m in store for their Local Charity Partners in 2016/17.
This shows that Sainsbury’s really cares about their community and is raising quite a high
amount to keep the community happy and the customers coming in.
Cranbourne Stores LTD
Political impacts – For a small business-like Cranbourne Stores the political side impacts
them more than Sainsbury’s. For starters it is among the least predictable element in the
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