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Political, legal, social factors affacting Tesco.

Extracts from this essay...

Introduction

The factors I have chosen to explore for the stakeholders of Tesco and the business activity are: > Political Factors > Economic Factors > Social Factors Political Factors There are various laws nationally and locally which affect Businesses especially large ones such as Tesco and the NHS. International bodies such as the European Union and the World Health Organization (WHO) effect both Tesco and NHS, however not in the same way. As Tesco is arguably the largest Supermarket chain in the UK it is always in the spotlight when decisions have to be made. Should Tesco ever decide to open another store or expand an existing one they will have to apply for planning permission and that impacts them as they have to wait and can't do nothing until they get the go ahead. Also a large issue at the moment is the environmental situation which attracts huge attention and the EU has set a number of laws which Tesco must abide by including: > How much waste can be thrown away by the business from packaging which was placed as law in 1999 and amended in 2004.This law also helps Tesco to attract customers as if they for instance use less packaging on their Tesco brand Cereal it will them to sell box and help keep them on top of competitors. > The Hazardous Waste Directive (1998) is another act which impacts Tesco into how they deal with the dangerous waste. If they were for example to throw it into the sea it would put sea creatures under danger and they would have a bad reputation from the unions which look after animals. This law has stopped the freedom that large businesses such as Tesco have had with dangerous chemicals as before because of their size they were able to do what they wanted but now with the EU looking over the UK they can't.

Middle

This has also left a very large impact on the Tesco as a business. The reason for this is because Tesco will have to buy their goods from suppliers. So therefore they have to pay for the goods, but then the problem comes when they comes when they are selling the goods due to the credit crunch people would like to pay a much lower price then listed. This is because people cannot afford to pay much for their products and would like to get everything at a cheap price. This then mean that Tesco will lose in sales and also lose in profit. Also interest rate this will make a large effect on the business this is because when interest rates go low and Tesco takes a loan out on the period of time they will then pay less interest on their loan. Due to the credit crunch taking place Banks are not lending much money to people. This will now mean that Tesco will not have that extra money to trade with. If Tesco go into a time where they are in need of money and would like to lend it from the banks they will have difficulty taking out the loan. This may mean that price may have to be raised which will mean customer may not purchase which will end up for loses for the organisation. Another thing that can affect richer sound is consumer confident. Since the public is having a difficult time finding jobs and holding onto their jobs people. Due to this people do not want to spend money on items. The outcome of people not spending money on products effects richer sounds. Tesco will not get many customers as usual which will the result in the businesses loosing profit. Impact on Tesco The impact that Tesco have from external influences are that if one of their competitors reduces their prices Tesco would have to do the same in order to keep their customers , which could reduce profits.

Conclusion

The economic factor affects the government as if the government that will have to pay for everything that the NHS buys. The technological factor affects the government as if the government that will buy and pay for new machinery. Media and the press The political factor affects the media and the press because if an employee hurt him/herself then the NHS has not got the proper safety equipment and working environment for their employees therefore the media and the press will let the rest of the local community know by broadcasting on the news and by printing it on news papers. The economic factor affects the media and the press as they may not make enough money to broadcast or print newspapers about the NHS. The technological factor affects the media and the press as with the new technology the media and the press will be able to spread new faster. Trade Unions The political factor affects trade unions as they will look for employees that are not being treated with rights such as health and safety rights. The economic factor affects the trade unions as employees may come to the trade union about wanting more pay. The technological factor affects the trade union as if the NHS buys new equipment or machinery and an employee seriously hurts themselves then the trade union would try and sort things out. Therefore because of all these external factors the trade union has a lot more work to do. Carers The political factor affects carers as they will want the patient that they are caring for to be treated with rights such as health and safety rights. The economic factor affects the carers as if the organisation does not make enough money then some of the organisations branches might close down therefore the carers have to find other health services to put the patients. The technological factor affects the carers as if the organisation buys new machinery the carers would want the employees to know how to use the machinery before they use it on a patient.

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