Essay
The Business Environment - P6
- Institution
- Undefined
P6 - describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders.
[Show more]
Content preview
Factors which affect STARBUCKS and their stakeholders:Political factors:
Political factors can affect Starbucks through the laws and regulations in the
UK and China.
Political factors can be:
- Changes in taxation
If the VAT tax is increasing in UK or in China, this will affect Starbucks
Company because the prices of their products will rise too, so the
customers will not be happy to buy expensive coffees.
In UK the standard VAT rate is 20% (just raised from 17 %) which is
quite high comparing to China, where the standard VAT rate is 17%. For
UK, this means an increase on prices of goods, so most of the
customers cannot afford to buy Starbucks products. This means also an
increase in import and export products; UK expenditure will go up.
China’s VAT rate is 17 %, which is lower than in UK. This means that
Starbucks has chances to sell more products in China than in UK,
because of their prices, so China’s population can afford to buy more
products.
- Corporation tax
Corporation tax represents a tax placed on the profit of a company,
with different rates used for different levels of profits.
In UK the corporation tax is 20% comparing with China, where the
corporation tax is 25%.
This means that in UK Starbucks will have more left profit than in
China, so Starbucks UK, can re-invest in the company, or use the profit
to open more shops.
In China, the corporation tax is higher, meaning that they can’t make
so much profit. If the company would like to have more profit, than
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Medeea. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53022 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now