P6 - Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders All businesses and corporations will face external factors that impact the business activities and stakeholders of a business. These factors of changes can be political, legal, and social within the business environment. Politics is a process by which groups of people make collective decisions. These decisions can affect businesses as well as the working economy. For example, a new legislation or a regulatory change of policies from the government will affect business activities.
|Learning objective |Place in Assessment | |1.1 Explain reasons for change in a business environment |Question 1 Page 1 | 1. Explain why change happens in a business environment. You should include at least three reasons for your answer. [1.1] Within a business organisation, there are various factors that can influence changes in a business environment, for example, there are external pressure and internal demands. Those influences can be measured by using the PEST analysis acronym that is the Political, Economic, social and technology.
Identify the social, political, regulatory, legal, technological, and international, external and internal environments in which a business operates. 3. Distinguish the numerous stakeholders and recognize the issues represented in each type of business environment relative to impact by operations of the business and impact upon the operations of the business. 4. Compare and analyze the various and sometimes competing considerations attending diverse stakeholder interests and inherent in cross-cultural multinational environments.
Learning objective | Place in Assessment | 1.1 Explain reasons for change in a business environment | Question 1 Page 1 | 1. Explain why change happens in a business environment. You should include at least three reasons in your answer. [1.1] Change happens in a number of different ways either reactively or proactively or internally or externally. Reactive change occurs due to outside pressures on the business these may include a perceived threat to the company or a new opportunity arises out of the blue.
|Learning objective |Place in Assessment | |1.1 Explain reasons for change in a business environment |Question 1 Page 1 | 1. Explain why change happens in a business environment. You should include at least three reasons in your answer. [1.1] Changes happen in a business due to political, economical, social or technical reasons and these reasons are all reactive. Political changes are changes that occur outside of the business and therefore out of the businesses control, say for instance a change in the law which could affect the business and it has to change the way it runs things to fulfil the requirements of the law.
It is the relationship between organizational culture and ethics that can get businesses into significant trouble in the long term. An organizational culture that supports uncertain decisions and unethical behavior will need to change its culture. When changing business, organization culture is problematic, but
When unethical decisions are made, everyone involved in the corporation and its well being are affected in a negative way and will jeopardize the well being of the business. “Ethical responsibilities of an organization’s management are to follow the generally held beliefs about behavior in society” (Wheelen and Hunger, pg 58). An ethical role within the corporation is not mandatory, however it is practiced in most businesses would be giving employees notices of
The Influence Different Stakeholders Exert on an Organisation In the business environment there are many factors which influence the business to adapt to different conditions which the stakeholders put onto them. British Telecommunications is an organisation which is privately ran however, it is a public limited company which means it is owned through shares and stocks which can give mixed emotion around how the business should be ran with conflicting views on this. This issue constantly needs to be resolved with every change the managing team will make on the business. Within an organisation of such size as BT PLC it is common that there is mixed emotions on how the company should be ran as well as future changes which the business may undertake. British Telecommunications try to achieve this goal - “The overall outcome is that BT’s stakeholders are reassured, BT’s reputation is enhanced, customers respond favorably, and business continues to grow.” To achieve this BT have a use of debates between stakeholders to find the option which best favors everyone in connection with the change 1.
Of the several regulatory bodies, which has the most affect on companies? Why? Do both public and nonpublic or not-for-profit organizations comply with the regulations of all regulatory bodies? Why or why not? Are there gray areas?
The issues were dealing with by the employees in this exercise can affect the company and the individuals. Another issue that had to be taken into effect was the company policies and if any had been broken. If any policies had been broken that the decision-making process would have been based on maintaining order and