In this assignment I am going to describe the impressions that the political, legal and social factors have on my selected organisations and the stakeholders within.

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Lewis Appleton 1 Miss Johnston
INTRODUCTION
In this assignment I am going to describe the impressions that the political, legal and social
factorshave on my selected organisations and the stakeholders within.
POLITICAL FACTORS
The political factorthat affectsTescothe most is the taxation. This is because it has the most
major impact on the profits that are made within the business. The corporationtax takes a large
amount of their profitand cannot be unpaid therefore this is the reason why this has the most
impact on Tesco.
The political factorthat affectsthe British Red Cross the most is the organisations that support
the organisation. The reason forthis is that because they are a charity they therefore will be
needing money to carry out their operations. This may mean that they have to rely on other
organisations to offerassistance and help with events so that they can affordtheir operations.
The main types of political factorsthat affectthe business are;
POLITICAL STABILITY
This is one of the things that can be in favourof the business. Up to every fiveyears a new party
is elected. The party that is elected then publicly announces their plans whichcan be of use to
the business. The business can analyze the possibilities that can be made or the risks. An
example of this helping a business is if an elected party states that they are trying to increase
fuel efficiency then it would be beneficial to a business in the car industry.
TESCO
This is useful to Tesco because it means that they are able to predict the changes of demand
accordingly to new party announcements. This way they are able to change the stock of their
products to items that willnot only gain them a profit but will also have a chanceof contributing
towards the government’s goal.
BRITISH RED CROSS
This is useful to the British Red Cross because it means that they can help the government
achieve its goals by changing the supplies that they use and the operations that they carry out.
TAXATION
Taxes are set by the national and localgovernment. Taxation is often used by the government as
a way to raise their revenue but it can also be used to encourage certain types of spending and

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discourage others, they can do this by changing the tax rate on certain products such as fuel.
Businesses often see taxes as an obstacle preventing them frommaking more profit.It also takes
a required amount of effortto fillout the taxation forms.
TESCO
This can be a bad effecton Tesco because it means that they may have to start using different
means of transporting items. The taxation will drive downthe profits from the sales; the income
that the business receives is also taxed. National Insurance and VAT can affectTesco because it
means they will have to pay out more money.
BRITISH RED CROSS
This doesn’t affectBritish Red Cross much because they do not gain any profits fromtheir
operations as they are set up to provide a service,all of the money received is put backinto the
organisation to improve its services.
PROVIDING INFRASTRUCTURE
The infrastructure is what supports the economy,it often includes communication links. For
example transport, internet and telephone connections. This is provided by the government.
The government provides support on facilities. Some of the support they give is designed for
private providers. The government also provides public locations with facilities such as the
internet.
TESCO
This can have an effecton Tesco because of the necessity to transport goods; the policies that
the government provide can be of help to Tescosuch as wireless hotspots.
BRITISH RED CROSS
This has a large effecton British Red Cross because they have to use the roads for most of their
operations, the government may provide services that are of help specifically to organisations
like the British Red Cross.
ENHANCING THE SKILLS OF THE POPULATION
The education and the skills of the population help in the workingenvironment. The
government creates all of the educational qualifications such as NVQs. The government also
provides training courses. Research is carried out to find what industries have a good chance of
growing and therefore the government can target new qualifications at these groups of people.
TESCO

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Lewis Appleton 3 Miss Johnston
This can be useful to Tesco because it may mean that certain staff can aim to get specific
qualifications and it will improve their curriculum vitae when applying, this provides Tesco
with a larger selection of staff to recruit.
BRITISH RED CROSS
This doesn’t affectthe British Red Cross much because they are not looking forcertain
qualifications but it can be of use to them because it can increase the efficiency of their
operations.
ORGANISATIONS TO SUPPORT BUSINESSES
The government has set up many organisations that are there to help businesses. One of the
services that the government provides is the Business Link whichoffers a range of services,
grants and loans that the government is able to provide. Some of the information that can be
used may include suggestions for a business name, how to create a business plan, and how to fill
in tax returns. The Business Link is set up to be of use to every business within the UK.
TESCO
Other organisations that are set up by the government can be of use to Tesco such as the
example I showed. It can be used by new recruits to introduce them slowly into the businesses
operations.
BRITISH RED CROSS
This doesn’t have a large effecton British Red Cross because they do not aim to make a profit
but the government is likely to provide advice.
MEMBERS OF TRADING COMMUNITIES
This is also an important political factorto businesses. Some businesses may set up a union with
other countries to ease trading. An example of this is that the UK is part of the European Union.
The unions are willing to buy more complex products than regular trading. There is also the free
movement of goods, money and labour. Businesses do not have to fill out much paperwork for
this.
TESCO
This affects Tescobecause they may regularly import and export goods and therefore they will
want to be part of a union to try and trade more complex products, this way they have a chance
to create more profitand gain supplies at a cheaper rate.
BRITISH RED CROSS
This affects British Red Cross because they are trying to improve the lives of people around the
world and they may need to trade supplies with other organisations in order to do this.

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LEGAL FACTORS
The legal factorthat affectsTescothe most is competition law, this is because they are one of
the leading markets and therefore have to take care withtheir competing as there are certain
laws in place. They will need to make sure that they do not go to lengths of effortthat will be
breaking the laws and therefore this has one of the biggest impacts on their operations.
The legal factorthat affectsthe British Red Cross the most is the contractlaw, this is the only
law that really applies to them but it is also important. They need to make sure that they apply
the laws to contracts with their suppliers and volunteers.
The main types of legal factorsthat affectthe business are;
COMPANY LAW
There are requirements fornew businesses such as the steps and the paperwork that is
involvedwith the set up, also the reports and representation of accounts that the business does.
There are laws that state you cannot use the same business name as another business, the
company also needs to be registered. Businesses need to keep registries on the shareholders
and directors that they have.
TESCO
This affects Tescobecause it means that they are not allowed to copy the elements of other
business and they are also not allowedto carry out certain operations without notifyingthe
directors within the business.
BRITISH RED CROSS
The British Red Cross are affectedby the business because they have to keep records on the
people that are a part of the business and they have to send these the annual report of the
company.
CONTRACT LAW
Businesses need to form contractswith individuals, groups and bodies externally fromthe
business. Examining the twomain types of contract,which are contracts with consumers and
contracts withemployees, the business can apply their contracts.First of all the business needs
to make sure that they ensure consumer protection as a priority, to do this they need to follow
the sales of goods act.To follow this act goods sold must be satisfactory quality, fitfor purpose,
and as described. This law also applies to services in terms of providing reasonable care, a
reasonable timescale, and a reasonable price. Another major actto be followedis the consumer
credit act; this covers credit agreements between a debtor and the creditor. The other laws that
affectthe business are the trade’s description act, the weights and measures act, and the general
product safety regulations. The employees also need to be protected and there are regulations
put in place to help the employees.
TESCO

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Lewis Appleton 5 Miss Johnston
Tesco willhave many suppliers that provide them with the equipment that they need, forthis
they willneed to have contract agreements withtheir suppliers. The contractwill include
certain details such as the set dates for new deliveries forTesco to receive,the amount of items
that they are going to receiveand what the items are. In the contractit may be stated that the
delivered products are required to be of a certain quality, therefore they may not be acceptedif
the supplies are not to Tesco’s satisfactory.
BRITISH RED CROSS
The British Red Cross willhave contracts with their volunteer workers as they will have to carry
out certain operations in a way that is safe. As well as this there is also the factorthat the
employee will need to give details in their contract.This includes things such as the names, job
title, employment date, address, hours, and notice period. Because the people are volunteers
certain regulations do not apply, one of these regulations is the minimum wages regulations as
the volunteers are not actually paid.
COMPETITION LAW
There are laws that are put in place with businesses that have competition, these include the
restriction of practices that are trying to reduce the amount of competition, businesses are also
not allowed to dominate a particular market, and there is also a law against what is called resale
price malignance, this is where a manufacturer will controlthe price at which retailers can sell
the goods.
TESCO
These laws apply to Tescogreatly because Tesco are one of the leading branded supermarkets;
therefore they have to ensure that they are not specifically dominating any market categories.
Tesco willalso have to be careful to prevent the reduction of competition through their own
business practices as this is not allowed. Finally Tescowill need to restrict their manufacturers
from setting the price that retailers sell the products for.
BRITISH RED CROSS
This law doesn’t affectthe British Red Cross because they are not trying to be better than any
other organisation, they are a charitable organisation meaning they do not run for profits, and
rather they are there to provide a service.
SOCIAL FACTORS
The social factorthat affectsTesco the most is the demographic issues as it can provide a very
good profit forthem. The rising populations will mean that there are more customers
purchasing items from them and therefore they will be making a higher rate of profit. There will
also be more people willing to apply for a job at Tesco and therefore they can have cheaper
wages, higher qualifications, and higher product prices to further increase profits.

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The social factorthat affectsthe British Red Cross the most is the education, this is because it
will mean that volunteers will be able to run more efficiently and therefore help more people.
This can be a very beneficial thing because they are able to save more lives and lose less.
The main types of social factorsthat affectthe business are;
DEMOGRAPHIC ISSUES
There is an increase in demand for the goods and services that are offeredwhen the population
of a country starts to grow, there is also an increase in people that are available to work. This
can be seen in the UK where at one point they weregrowing at a fast rate, this was the result of
changes in the economy whichhad persuaded the government to make immigration of labour
easier.
TESCO
This affects Tescobecause it means two main things can happen. First of all there are more
people; this means more households and therefore more shopping to run on. Tesco can use
these statistics to sell more products in specific areas, this way Tesco is able to make a faster
rate of profit because of the changes. The other main thing is that there are more people
available to work,this means that Tesco willhave less trouble finding potential employees that
can workfor them as there are more unemployed people, because of this it also means that
because of the availability Tesco will be able to lowerthe wages or raise the requirements and
still a large amount of people willmake applications.
BRITISH RED CROSS
This is very useful to the British Red Cross as they are alwayslooking for new people to
volunteer, with the rise in the population it means that more volunteers will become available
and more people can be helped because of this. There is also a disadvantage of this, if more
people are coming to the UK to work,at the same time it means there are going to be more
people that need help. This can be either a very good thing or a bad thing forthe British Red
Cross.
CHANGES IN STRUCTURE
There is continuously an increase in the number of older people in the UK, it is estimated that in
the next century there will be a large increase in the amount of people over 100. People are
more likely to workwhen they are younger and livefrom pensions when they eventually retire.
There is generally a different demand for products from older people as they tend to be more
risk-averse and therefore spend less.
TESCO
This can be a bad effecton Tesco formany reasons, first of all the increase in older people can
mean that the products that are usually sold are not to their standards, an example of this is that
older people are not very likely to purchase chocolateor sugary products, another bad thing is
that older people are not willing to take any risks and therefore they actually spend less money.

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Older people start tolive off their savings and therefore willnot have as much money as
younger people, this is the reason why they spend less and these reasons are why Tesco can
make a lowerrate of profit.
BRITISH RED CROSS
This can also be a bad thing for the British Red Cross because old people may be less efficient as
volunteers, but, they also feel that when they are retired they may want to help out by being a
volunteer. The problem with this is that younger workers will generally be able to do more
things and help more. Another problem with an older population is that as people get older they
start to become ill and it would mean there is an increase in the amount of people going to the
British Red Cross for help.
EDUCATION
Education is important for applications for job positions. During these days it is almost a
necessity to have good educational qualifications; nearly all employees are usually expected to
have good skills with computers, English and maths. Some qualifications that are more
vocationalsuch as BTEC’s are seen to be important by employers as it gives them a good basis of
what to expect from a job position. In general business is an important role in many jobs
because of the skills that they provide.
TESCO
Tesco have many different job positions and because of the population increasing they willmost
likely have high qualification required for the better paid jobs. Tescotherefore see the education
as an important role as many qualifications can give a good basis for the lines of operations that
the different roles carry out. There are also qualifications that are related to business, financeor
marketing that is very well accepted to be useful qualifications by employers.
BRITISH RED CROSS
There are most likely no qualifications to be a volunteer for the British Red Cross but it will
actually help for the volunteers to be able to carry out more complex lines of workand therefore
they willbe given more complex jobs. This is therefore helpful to the British Red Cross because
they are able to help the organisation in a better way,being more efficient.
ATTITUDES TO WORK
The attitudes to workare what influence the relationship importance between both the
business and the employees that are working for them. In the most recent years the UK has
started to develop a “long hour’s culture” compared to other countries within the EU,but there
are also other countries that have a longer amount of average hours workedper week.The
other things taken into consideration within the relationship are the care that the employees
give to their assignments, the way they acttowards customers and their relationship that they
have with their employer.
TESCO

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Tesco willbe looking fora good attitude to work,this is because they willbe selling products to
customers and therefore the attitude that the employee has towards the customers is important,
it can mean the differencebetween a good sale and a complaint. Tesco will also want employees
to be able to workfor a long amount of hours to keep a constant flow of operations being
carried out. This way Tesco are also able to have a high levelof efficiency and fromthis they can
make both better profits and a better relationship with their customers.
BRITISH RED CROSS
The British Red Cross willwant people that apply for them to be willing to carry out the
different operations of workwith a levelof dedication. They are not going to want volunteers
that do the job incorrectly or are not doing the job to the satisfaction of the managers. Although
it is useful for there to be a good attitude to workand it is accepted by the managers it is not a
necessity. If people were not dedicated enough to their workthen the British Red Cross might
not keep the volunteer.
RELIGIONS
There are some countries that have a majority of the population in the same or similar religion
groups; the religious groups all have their own beliefs and values. The beliefs and values affect
what goods people are persuaded or willing to purchase and the behaviours that are seen
within the workplace. Employersneed to be familiar with operations that certain religious
people have to attend to. There may also be a need to apply certain beliefs to their products to
keep the majority of the population satisfied. An example of this is that some Christians will not
workon Sundays.
TESCO
This is important to Tescobecause it means that they may have to provide certain hours off for
some employees because of the religion they are in. This can mean that they will need other
staff available to take over their shifts so that they can continue to carry out the operations.
Without staff available to take overit wouldmean that the progression is paused and less profit
will be made.
BRITISH RED CROSS
The British Red Cross willtake this into consideration because their volunteers may not be able
to workwhen they are needed. They are going to need volunteers available in case of an
emergency because otherwise it can have a major impact on the organisations operations. The
availability of volunteers can be the difference between someone’s life and death.
ATTITUDES TO MALE AND FEMALE ROLES
Differentjob roles are generally associated with either male or female. This can be seen because
half of the workingpopulation is female and overhalf of people trying to enter the working
operations of medicine or law and other professions are generally female. The majority of
British directors also tend to be male. There is also a demand forfitness clubs, gyms and
equipment that provides a level of entertainment.

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TESCO
This can affectTesco in different ways; certain job roles may be more associated with different
genders. Females may be seen as friendlier in terms of customer serviceand therefore may be
more popular, there are also requirements meaning that there has to be no favourof gender in
the workplace, this can actually make it more difficultforTesco to get the employees that they
would prefer.
BRITISH RED CROSS
This can have an effecton the British Red Cross because they might have to do complex
operations of work. The volunteers need to be able to do operations whichare more likely to be
easier for a male whereas the operations that can be carried out from a computer are more
likely to be females.
ETHICS
These are the values and the principles that the people running the business have. These can
help shape the actions that a business has and the actions and decisions that are made. The key
ethical issues are fair trade products which give the suppliers a fair price, environmentally
friendly resources such as those that can be recycled,not misleading the customers in any way,
and giving customers good advice on whichare the better products for their needs. Some
businesses may also have a corporate social responsibility (CSR).
TESCO
This can affectTesco because it will change how they think they should carry out their
operations; it also affectswhat operations that they decided they are going to carry out. As well
as meeting the wants of the directors it is also a good thing that the public know about these
ethical issues being met because it may persuade them to purchase the products that are being
sold.
BRITISH RED CROSS
This affects the British Red Cross greatly because they belief that all of the ethical issues should
be met, they are trying to carry out their operations forthe better and therefore want to make
sure that everything they do is of satisfactory to everyone.At the same time as meeting ethical
issues they may try to make corporate social responsibilities to try and show that they are
trying to meet their ethical issues while being as efficientas possible.
CONCLUSION
I have found how the different political, legal and social factors affectdifferenttypes of
businesses and the way they affectthem. I have seen that depending on the type of business
there are some factorsthat are mean more profit loss and there are some that can provide a

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Lewis Appleton 10 Miss Johnston
better rate of profit.I have found that the most important factors that can affectany business
are the taxation, competition law and demographic changes when used in a competing market.