Unit 1 P6

756 Words4 Pages
P6: Describe how political, legal and social factors are impacting upon the business activities. Oger Political factors In the Netherlands there are various taxes that have to be paid by businesses. The taxes Oger has to pay are: Dividend tax, income tax, wage tax and VAT. This are a lot of different taxes, but due to the Intra-Community acquisition Oger does not have to pay double taxes when the fabrics are imported from Italy. All these taxes mean a lot of paperwork and it costs a lot of time. Oger does have his own accountants to take care of this, but he also hires a tax advisor to help out with all of the complications concerning the taxes. The infrastructure in the Netherlands makes all of the stores easily accessible by public transport. But because all of the stores are in the city’s center, it is rather difficult and expensive to park a car close by. Unfortunately Oger’s average customer is not too keen on public transport, so he might encounter some difficulties getting rid of the car. Legal factors Because Oger is a private limited company, Oger is bound to the Company act. This act protects the shareholders as well as the owner himself. Obviously Oger is also bound to various contracts with the employees, suppliers, customers, trade associations and any other body Oger choses to do business with. All of these contracts have different policies, and Oger has to stick to every one of them. For the contracts with the customers, this mainly has to do with the quality, price and service. For the employees on the other hand, it has to do with their payrolls and working schedules. of course Oger also has to obey to the competition law which amongst other prohibits gratuitous trading caused by cartels, so ensure fair and honest trading. Social factors The Dutch population keeps on growing, especially in the bigger cities. This means a larger demand,
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