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BTEC Business Level 3 Unit 1 P6, M3
BTEC Business Level 3 Unit 1 P6, M3
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BTEC Level 3 Unit 1 (P6, M3) Name: Daniil ChernatUnit ttle: The Business Environment Assignment ttle: What business is all about
P6) Describe how politccl, legcl cnd socicl fcctors cre impcctng upon the business ccties of
the selected orgcnizctons cnd their stckeholders.
M3) Anclyze how politccl, legcl cnd socicl fcctors hcie impccted on the two contrcstng
orgcnizcton.
Gazprom is a multnatonal energy company that operates in 4 countries and supplies over
30,000 ind ustrial and commercial customers. Gazprom has 3 ofces across Europe and more
then 350 employees. In ad d iton to that, Gazprom is the world ’s largest gas prod ucer. However,
its net proft fall by 70% to 189 billion rubles in 2014.
Politcal Factors in UK (http://www.bbc.co.uk/news/uk-politcs-32793642)
In the UK on 23rd Jun there will be a referend um when UK votes d ecid e if the UK remains in the
EU or of it leaves (Berexit). There could be some serious consequences if UK d ecid es to leave
EU. For example, there could be impact on businesses d epend ing on the outcome of the
referend um. If UK leaves then business analysts suggest that:
UK companies would be freed from the burd en of EU regulaton.
Trad e with EU countes would contnue because the UK imports more from the EU than
it exports to EU.
Britain would be free to arrange new business d eals with any other country in the world
as we as the EU.
If the UK remains in the EU, then business may contnue as it is now:
Britain would not experience an economic shock and possible slower growth
Britain will contnue to d epend ent on the rest of the EU than they are not us
The UK would stll have to apply EU rules to retain access to the single market
M3) A company such as Gazprom which operates in the UK might be afected by the outcome
of the referend um because if Britain leave the EU, Gazprom could face less regulaton.
However, it may fnd that there are higher tarifs imposed on the company when it is selling to
other EU countries.
Politcal Factors in Russia
The main politcal factor in Russia is electon in eptember 2016. Currently, United Russia is
Russia’s ruling party but d id not win a majority in 2011. Vlad imir Vlad imirovich Putn (VVP) is
the Russian Presid ent. He is really popular in Russia but less popular outsid e of Russia. VVP
, BTEC Level 3 Unit 1 (P6, M3) Name: Daniil Chernat
Unit ttle: The Business Environment Assignment ttle: What business is all about
supports expansionist natonalism which mean that if he is successful in the eptember electon
he will stll remain as a lead er of Russia.
Above, you can see the GDP of Russia and it illustrates that in 2014 the GDP was 1860.6 U D
Billion. Therefore, although Putn may not be the best Presid ent in some ways, his re-electon
would contnue politcal stability of the country which has improved GDP untl 2014 when it fell
d own because of the sanctons from Europe and U A which had a negatve impact on the
economy.
M3) Gazprom is heavily sponsored by the government, which means that the business will
never become bankrupt. Russia’s strategic economic policy is to expand into the Far East and
the main country that Russia is working with is China. Gazprom will be the lead ing company for
supplying gas to China and this process will take place in 2019. Gazprom wants to ensure that
no changes are d one in government, as this will break the stability of Russia and China might
make this d eal more d ifcult.
Legal Factors in the UK
All businesses that operate in the UK will be afected by legal factors. There are specifc laws
which organizatons must operate within these includ e:
Company law is the Companies Act 2006 and includ es the requirements and regulatons
which companies must follow in the UK. The Companies Act also includ es relevant
requirements by the EU.
Contract law involves companies which have contracts. In the UK the law sets out how
contracts are written and how to make business agreements legal using the correct
language.
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