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P6/M3 Unit 1 BTEC Level 3 Business
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This is BTEC Level 3 Unit 1 P6 & M3 document
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Jahed AhmedBMC000010360
For this task I am going to describe and analyse how political, legal and social
factors are impacting upon the business activities of Tesco and McDonald’s and
their stakeholders.
Political Factors
Political factors are how the government intervenes in the economy. Political
factors include areas such as tax policy trade restrictions, tariffs and stability.
The political factors which impact upon the business activities of Tesco and
McDonald’s are that the government will require Tesco and McDonald’s to pay
taxes, or the government may provide grants or subsidies to develop Tesco’s and
McDonalds’ certain areas of their businesses. The government will raise the VAT
to 20% in January of 2011 which means that Tesco and McDonald’s will raise the
prices of their products which means customers will have to pay more, this could
result in a loss of customers for both companies which means they would make
less profit. The government are cutting benefits such as EMA, child benefits, etc,
so the alternative for receiving income would be to have a job which is why the
government is encouraging work, which means that Tesco and McDonald’s would
probably have more employees. The government in also increasing fees for
students which means the students will have less spending money which means
that Tesco and McDonald’s will have less customers which means less profit.
Legal Factors
The legal factors which impact upon the business activities of Tesco and
McDonald’s are National and International laws and other legislations such as
employment laws which protect employees of Tesco and McDonald’s from unfair
treatment at work such as when employers are dismissing staff, when they are
recruiting and selecting new staff or when they are making redundancies and
when Tesco and McDonald’s have to fit in new procedures and policies for
employees. Health and Safety laws which make the workplace safer for
employees and customers. Environmental laws which require Tesco and
McDonald’s to protect the environment from harmful emissions and waste
disposal. Consumer rights and protection which is managing the quality, quantity
and the safety of the sales of goods so that the customers get what they pay for.
Contract laws which ensure the protection of buyers and sellers in a contract
situation. Competition laws that promote fair competition between Tesco’s rival
companies and McDonalds’ rival companies. Foreign affairs where the
government can develop trade routes within other countries so Tesco and
McDonald’s can operate overseas. International wars can affect businesses as
they can put blocks on international trade.
Social Factors
Social factors relate to changes in the behaviour, tastes and lifestyles of
communities on a local, national and international scale. Social factors are about
the way in which we live: our attitudes, beliefs and lifestyles. Social factors which
impact upon the business activities of Tesco and McDonald’s are an ageing
population such as an increase or decrease in family size or an older population.
The ageing population had created problems for the pensions industry which
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