• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Political, legal, social factors affacting Tesco.

Extracts from this document...

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. ...read more.

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. ...read more.

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. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Marked by a teacher

    Describe how political, legal and social factors are impacting upon the business activities of ...

    4 star(s)

    The minimum wage for employees aged 22+ is £6.08. These minimum wage requirements increase costs for Tesco and may impact upon the number of employees Tesco recruits, which could impact upon the quality of customer services. If Tesco does not comply with the minimum wage bracket their employees have the

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    An M&S spokesman said 'Sadly, like many other retailers, we have seen an increase in the theft of some high-value products.'11 Shoplifting has increased during the recession and this is because many people are financially struggling and this has made many people more likely to steal or buy stolen goods.

  1. Btec National Business Level 3 Year 1 - Exploring Business Activity

    Ethical and environmentally friendly behaviour attracts customers and reduces the risk of legal action. A good reputation for customer care and ethical standards Merit 2 * Explain the points of view from different stakeholders groups seeking to influence each organisations aims and objectives.

  2. This is a detailed business report on Sainbsurys.

    Sainsburys buys the products at low prices and add value to the products. Let us look at the diagram below to understand this process of production. Capital Material Labor Energy Information Adding value and Quality One of the main prime concerns of any business is to convert inputs into outputs to satisfy the needs of consumers.

  1. Critically discuss the concept of separate legal entity and its legal consequences and significance ...

    This limitation provides great security to shareholders who are able to profit from the activities of the company knowing that under the Insolvency Act their obligation is only limited to the face value of their shares (which is normally already paid up front and therefore there is no further liability).

  2. Aims,ownership and stakeholders of Tesco and UNICEF

    Because of its late night shoppers, Tesco decided to open another store which it named? Tesco Extra?. This store opens 24 hours all day all night. This idea has helped to improve Tesco?s profit and it also attracts more customers.

  1. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    Since January 2008, Tesco?s has more than 500+ carbon labelled products to help customers to be aware of what they are buying and if they should use a different product as opposed to the carbon product. Win locally by applying our skills globally ________________ Their fourth aim ?win locally by

  2. Comparison of stakeholders interest and influence. Apple vs. Mercedes Benz

    This means Apple can be more realistic and driven towards achieving their goals while also clarifying to employees so they better understand how much is expected from them for specific goals to be reached. Measurable: By setting measurable goals Apple allows for aims and even short-term objectives to be met, so that they don?t fall behind schedule.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work