Tesco External Influence

Assignment 1.4 - External Influences
Scenario: For this assignment, you have been examining two contrasting business organisations. The final part of the assessment asks you to examine how your chosen organisations are affected by changes in their political, legal and social environments.

Task 1: P6

Political:
Political Factors are basically the important decisions that are made by the government. The UK is governed by the political party at a national level. This means they secure the most members/seats in the general election for parliament. These politicians have to make important choices/decisions for the public to vote for them. These political factors consist of political stability, Government support for different types of organisations,

If the minimum wage has increased then Tesco's will need to make a decision. The decisions they will have to consider are whether they decide to pay more to their employees because of how well they work and because they have no choice or Tesco's will have to decide on how many employees they will have to cut.
Taxation has a huge impact on organisations, especially Tesco's, as some of their products have increased on tax. Some products have increased in tax because it is considerate for the government such as for the economy, healthy living and the environment. Due to an increase of tax on certain products not many people will agree with the price they are paying for these specific products and/or services. This is the reason why it has a huge impact on the companies because they aren't gaining much profit from them, they are losing profit from

These social factors consist of Demographic issues (political issues), Changes in structure, household and families education, attitudes to work, religions, crime levels, attitudes to male and female roles and lastly ethics.
Demographic Issues relates to population issues which has a huge impact on businesses. It effects businesses because if the population grows bigger within the country and customers are demanding for availability in specific products and services, the businesses may not be able to gain availability from their suppliers. This could be because it is costing them too much and there maybe a lot of pressure on them too.
Crime levels are another big impact on businesses because the companies would have to may out more money for security guards, pay for security equipment to check the building and lastly the business could lose out on employees as they may decide to leave work if the crime levels are becoming increased quicker. These affects are all due to crime levels increasing in certain areas where the business maybe