P6 Business Essay

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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. Social factors relate to changes in the behaviour, tastes and lifestyles of communities on a local, national and international scale. In a business, it is important for the marketing department to take account of the various social characteristics of the consumer groups for their target market. Legal factors relate to the laws, regulations and legislations which affect the way a business functions. For example, common law for business balance prohibits paying a little and getting a lot. I will describe how political, social factors impact upon Tesco and Bank of China. Political factors of Tesco Tesco have political factors that affect their business activities. For example, political stability for the national economy in this case the government such as the government make decisions in the best interests of the people and should support businesses. The advantages of the government providing support to Tesco will economically benefit the growth of Tesco as well as the country. The government will also benefit from the amount net exports created from UK firms that invested overseas. Political factors of Tesco are: * Taxation * Employment * Education, training and research * Duty on goods * Membership of the EU Tesco

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