Business environment P6 unit 1

1. UNIT 1 THE BUSINESS
ENVIRONMENT
Throughout this PowerPoint I will be describing, analysing and
evaluating the factors which are political, legal and social that might
impact on business activities and my chosen organisations
BY: Tarandeep Singh

2. HOW POLITICAL, LEGAL AND SOCIAL FACTORS ARE IMPACTING UPON THE BUSINESS
ACTIVITIES
Political, social and
legal factors that can
impact my chosen
organisation
Political Stability
Taxation
Infrastructure
Company law
Employee protection
Competitive Pressures
Ethics/Environment
trends
Religion Demographic Issues

3. DESCRIPTION OF THE FACTORS ON BUSINESS
ACTIVITIES AND STAKEHOLDERS
Political factors
Political Factors Impact on Tesco Impact on Oxfam
Political Stability
The change in government can effect tesco as their
may be new laws put in place by new government,
such as minimum wages being increased or decreased
and if they don't follow the laws they might have to
face the consequences of being fined or bank corrupt.
The change in government can be useful because
Oxfam can help the government to fulfil or achieve
its objectives also known as goals through changing
their supplies that they may use as well as the
operations that they may be carrying out.
Taxation
The government can have major influence on taxation
to affect the aspects of businesses which include tax
increase and less revenue for businesses. the higher
taxes can affect tesco profits and investment.
This may not have any impact on Oxfam because
they don't gain or make any profit from their events
and operations they do as they are there to provide
service, all of the money and donations received are
being invested back to the organisation to improve
their services.
Infrastructure
Tesco operate and selling their product online on the
internet for the people who want to shop from home. It
allows the people to open up new market which means
they can make more money as well as it allow tesco to
operate around their feedback.
This might have an major impact on Oxfam because
they need to use roads for most of their operations,
the government might provide more services that
can be helpful specially to organisation like: Oxfam.

4. ANALYSE THE PRESENT IMPACT OF THE FACTORS
Political factors
Political Factors Impact on Tesco Impact on Oxfam
Political Stability
The change in government can effect tesco as their
may be new laws put in place by new government,
such as minimum wages being increased or decreased
and if they don't follow the laws they might have to
face the consequences of being fined or bank corrupt.
The change in government can be useful because
Oxfam can help the government to fulfil or achieve
its objectives also known as goals through changing
their supplies that they may use as well as the
operations that they may be carrying out.
Taxation
The government can have major influence on taxation
to affect the aspects of businesses which include tax
increase and less revenue for businesses. the higher
taxes can affect tesco profits and investment.
This may not have any impact on Oxfam because
they don't gain or make any profit from their events
and operations they do as they are there to provide
service, all of the money and donations received are
being invested back to the organisation to improve
their services.
Infrastructure
Tesco operate and selling their product online on the
internet for the people who want to shop from home. It
allows the people to open up new market which means
they can make more money as well as it allow tesco to
operate around their feedback.
This might have an major impact on Oxfam because
they need to use roads for most of their operations,
the government might provide more services that
can be helpful specially to organisation like: Oxfam.

5. ANALYSE THE PRESENT IMPACT OF THE FACTORS
Legal factors
Legal Factors Impact on Tesco Impact on Oxfam
Employee Protection
The laws are put in place which will mostly effect
tesco and the changes in employee work patterns
would mean that the employee are offered part time
work which means minimum wage. As this is impact
tesco because they would have to increase their wages
for their employees as they are working for more
hours.
This will also have an small affect the volunteering
organisation because they will want to be working in a well
organised and safe environment. It says on Oxfam employee
policy that they have to pay employee while they are on
holiday which may affect the business as they are paying
money to those who are not working. It will affect the profit
as it will decrease because employees are not working but
they are still being paid.
Company law
This will affect tesco because they are not allowed to
copy other business elements as well as they are not
allowed to carry out certain decision without notifying
the directors within the business or the chairperson.
This is influence Oxfam because Oxfam employees do not
expect a salary as they are all volunteers and want to help
the charity however the still expect to be working in safe
and good conditions along with being treated with respectful
manner.
Competitive
Pressures
This competition commission law will mostly effect
Tesco because they are one of the leading market in
UK therefore they have to be careful to prevent the
reduction of competition through continuously
providing training to their employees and
This competition commission law might affect Oxfam
because they follow same law any there are trying to become
better than any other volunteering organisation, they are a
charitable organisation which means that they do not run
their organisation for profits, and they have their to provide
services only.

6. ANALYSE THE PRESENT IMPACT OF THE FACTORS
Social factors
Social Factors Impact on Tesco Impact on Oxfam
Ethic/Environment
trends
This will impact tesco because they will have to
consider ethics and cultures when doing things so
that they are not offending anyone which means
through offending people it will impact tesco
reputation in a negative way.
This will impact Oxfam because they operate in more than 5
countries so they have to make sure ethics factors are being taken to
consideration when doing their work as well as to make sure they do
not offend any cultures. For example: if they are in a Muslim
country they might need to make sure any food given would have to
be halal also if things like these not kept in mind it might give a bad
image to charity.
Demographic issues
This will affect tesco because they can use
demographic changes so it allow them to
understand their target markets and the
customers that purchase their products which
allows them to know their consumers more and
how they act when buying products at their
store.
This is influence Oxfam because Oxfam can understand their target
market as well as the consumers that are purchasing products at
their charity stores. Demographics can help the organisation to
maximise profits because I will help them know where to sell specific
products. Oxfam are open to all ages as they would be able to get
more volunteers and fulfil their needs and aims.
Religion
This will affect tesco because it means they may
have to customize hours of work for some
employees because of the religion they belief in .
This can also mean that they will need other staff
available to take over it would also mean that the
progression is paused which means they is less
profit will be made.
This will affect Oxfam because their volunteers may not be able to
come to work when they are needed. In that case they may going to
need volunteers available in case of an emergency because otherwise
it could have a major impact on the Oxfam operations. The
availability of an employee or volunteer could be the difference
between someone’s life and death.

7. EVALUATE THE FUTURE IMPACT OF THE FACTORS
Social factors
Political
Factor
Future Impact on Tesco Future Impact on Oxfam
Political Stability
If they intend to open new stores in UK, they could
face major problems due to the instability problem
in UK, Within the last year there has been multiple
terrorist activities around the UK which will have
a major threat on retail commission.
This will impact Oxfam because it means that they need help the UK
government due to the political instability in the government to help
achieve their goals by changing in the government may cause Oxfam
to face future consequences which include: losing their 10- 15%
income coming from the Uk.
Taxation
The changes in tax system will have major impact
on Tesco
This is influence Oxfam because Oxfam can understand their target
market as well as the consumers that are purchasing products at
their charity stores. Demographics can help the organisation to
maximise profits because I will help them know where to sell specific
products. Oxfam are open to all ages as they would be able to get
more volunteers and fulfil their needs and aims.
Religion
This will affect tesco because it means they may
have to customize hours of work for some
employees because of the religion they belief in .
This can also mean that they will need other staff
available to take over it would also mean that the
progression is paused which means they is less
profit will be made.
This will affect Oxfam because their volunteers may not be able to
come to work when they are needed. In that case they may going to
need volunteers available in case of an emergency because otherwise
it could have a major impact on the Oxfam operations. The
availability of an employee or volunteer could be the difference
between someone’s life and death.