D2
Unit 1: The business environment
D2- Evaluate how future changes in political, legal and social factors, may impact on the strategy of a specified organisation
Tesco
Political Factors
The political stability affects Tesco because there are elections which take place every five years which lead to the government introducing new laws, regulations and changes in tax. This affects Tesco because they need to sell their products in order to make a profit and keeping the business running along with having to afford the packaging, new stock and then paying the price of tax.
Political things such as grants and loans which are borrowed from the government by Tesco could cause a negative impact on the business because they will have large amounts of money to repay. Tesco should devise a strategy which minimises the amount of money which they borrow therefore, it the long run it will affect them postivley as they will have more money to spend on things such as expansion.
Legal Factors
One law which affects Tesco is the Data Protection Act (1998), Tesco have to keep all the employees and customers’ private information locked away in a secure data base away from anyone gaining access and using the information.
The government increased maternity and sick leave payments; this affects Tesco in a negative way because staff costs increase along with having to replace employees with temporary employees which also cost. One way which Tesco could manage this is to give the responsibilities of the employee currently on leave to someone who has the knowledge of what this person does, this way Tesco wouldn’t have to spend money on temporary members of staff or training courses for current staff. Overall, this would then not affect the businesses performance.
Social Factors
There have been many changes to the structure in families; with an ageing population, rise in single-person households and changes in education Tesco have to meet the needs of everyone. For example, one thing which
D2- Evaluate how future changes in political, legal and social factors, may impact on the strategy of a specified organisation
Tesco
Political Factors
The political stability affects Tesco because there are elections which take place every five years which lead to the government introducing new laws, regulations and changes in tax. This affects Tesco because they need to sell their products in order to make a profit and keeping the business running along with having to afford the packaging, new stock and then paying the price of tax.
Political things such as grants and loans which are borrowed from the government by Tesco could cause a negative impact on the business because they will have large amounts of money to repay. Tesco should devise a strategy which minimises the amount of money which they borrow therefore, it the long run it will affect them postivley as they will have more money to spend on things such as expansion.
Legal Factors
One law which affects Tesco is the Data Protection Act (1998), Tesco have to keep all the employees and customers’ private information locked away in a secure data base away from anyone gaining access and using the information.
The government increased maternity and sick leave payments; this affects Tesco in a negative way because staff costs increase along with having to replace employees with temporary employees which also cost. One way which Tesco could manage this is to give the responsibilities of the employee currently on leave to someone who has the knowledge of what this person does, this way Tesco wouldn’t have to spend money on temporary members of staff or training courses for current staff. Overall, this would then not affect the businesses performance.
Social Factors
There have been many changes to the structure in families; with an ageing population, rise in single-person households and changes in education Tesco have to meet the needs of everyone. For example, one thing which