Business level 3 unit 38 p5 m3, two assignments together on one document
Describe the impact of international factors on a
selected business.
Assess the impact of changes in the global and European business environment on a selected business.
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In terms of the impact on ASDA of developments in the global and European union as the EU has policies
that will impact businesses. The policy about business growth and employment; this policy aims to
enhance employment and invest in countries or regions in countries to help the country or region
develop and grow. This will impact ASDA because if they decide to open a shop in a poor area the EU will
provide money for the businesses because ASDA opening in poor areas is developing the area and
allowing it to grow. The EU may also ofer ASDA minimal tax to pay because if ASDA open in poorer
areas their products will have to be cheap so it is afordable and also ASDA moving to the poorer area is
creating employment which means people will possibly have more money to spend which allows the
area to grow. Also other businesses such as suppliers may open warehouses in the poorer areas and
their goods may be cheap as it is a poorer area which means businesses such as ASDA can buy goods for
a discounted price. In terms of this policy it also brings competition for ASDA as prices are already low
due to being in a poor area if a business such as Tesco opens a store in the poor area, it forces ASDA to
compete for prices which makes them lose out on more proft.
The EU also has policies on education in which they provide money for certain courses such as in college
the EU will fnance it. With this policy the EU aim to improve the quality of education. The EU has certain
demands in terms of education for the EU members such as early leavers from education should be less
than 10%.This policy impacts ASDA because it allows ASDA to have a more educated workforce because
as the EU fnances certain courses, they also fund grants and maintenance loan for students who are
going to university. More students in education will mean they will be able to communicate well which is
a skill they can use if they decide to work in ASDA and the staf will know have a basic knowledge of
math’s which is essential in ASDA in order to do transactions.
In terms of the environment policy, the EU has this in place in order to protect the environment for
example the policies are in relation to air, noise, waste and pollution etc.EU has made the UK clean the
beaches in order for it to be safe for people to go there and also clean out the waste there. Also the UK
is also being told to deal with the air pollution caused by diesel cars. The UK government has a target to
reduce co2 used, which means ASDA has to be aware of how much co2 they use. In terms of diesel cars
the new mayor of London is trying to do something to stop the use of diesel cars and this afects ASDA
because if their customers use diesel cars they may not have a car for a period of time which stops them
going to ASDA especially if that was their main way of transport. Due to the UK government being sued
for air pollution because of the use of co2 they may increase carbon tax which will afect ASDA if they
use diesel cars as these cars release co2.
If the UK leave the EU, it would be difcult for businesses to trade with EU as the EU made it easier to
trade .As ASDA if a supermarket, they get some of their products from countries in the EU, such as
getting their olive oil from Spain and they get their cheese from the EU. Also if UK leaves the EU the
economy could slow down and a recession could happen, which means people will have less money to
spend in ASDA. If the UK leaves the EU, it makes it difcult for immigrants coming from Europe coming
to the UK which means fewer customers for ASDA.
The world trade Organisation is an Organisation with 153 member governments since 2009.This
Organisation wants to support negotiations between countries and make it easier for countries to trade
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