There is government support available to the private sector such as Tesco where they are schemes such as “The Challenges of transition: from public to private” allowing the stores to operate if they allow new workers to be hired where about over 300,000 workers are supposed to lose their jobs from the public sector such as those working in the fire department less stations will be required in the future so they will be shut down and forcing the workers to be unemployed also local libraries will be shutting down so those working in that business will also unemployed so they will be requiring a new job so the scheme allows the private sector business to open new store if they are allowing to hire a certain amount of workers. The schemes are similar to those in the public sector where they teach those in the public sector useful skill where they encourage better understanding by allowing the private sector to identify the skills thought so they hire these people as new employees so Tesco can hire workers from the job centre with past experience so it benefits Tesco by having trained employees so they don’t need to spend money on training them so that falls under training and education that is also negative support from the government such as taxation where they pay a percentage of their earning (around 20%) where they have different levels and types on tax on what they sell and what they buy so the government is allowing them to operate as long as they pay they’re percentage of tax but supporting the business positively the government reduces tax when they are in a recession so the business can still successfully operate the support is available to Tesco since it is one of the largest operating business it contributes to majority of the income of the country so the government has to take this in concern so they have a sort of good relationship where they don’t move to another country so this is beneficial to both parties where Tesco is able to operate and have allot of employees to work for them and benefits the government by allowing them to collect tax to support the country.
The E.U is an economical as well as political union where they currently have 28 parties, they operate by the system of supranational independent institution an intergovernmental negotiated decisions made by the members. Formed back in 1951 originally with only 6 countries, so what affect does it have on businesses, they have abolished passport control where you can freely move in and out of multiple countries so transporting goods have become easier especially for Tesco because there stores are located within the E.U so they can send resources to that location to support the store or to set one up. When the E.U was set up after the ww2 it was set up to easily transport resources such as coal between 2 or more countries where resources had been used up or have been destroyed in the original country so the countries who agreed to the treaty worked together to support each other. So far the E.U has allowed 3.5 million jobs that are linked between two or more countries for instance factories are set up in France to help run stores within the U.K, so the U.K being within E.U is relevant to Tesco because it allows easy access between countries to transport goods and set up resources and establishing a relationship with cheaper suppliers from other countries, so it is relevant to Tesco by allowing them to transport goods without being stopped or delayed between boarders.
Legal factors-
Company law is where they have a legislation which the formation governance of a firm is administered and controlled. Within the U.K the term company is used for business that fall under company’s act of 2006. It is the field of law which concerns companies such businesses, organization, partnerships and other business type’s that have an economic activity like charities. So companies laws are rules a outline which Tesco has to follow such as who can run the business where they can operate what they are allowed to sell to the targeted customer and importantly keep records of share holders who have made payments and what percentage of the business they own. So company law is relevant to Tesco because they have to follow the rules that have been placed, they have achieved this by having an annual report which has been approved by the board of directors, so it has affected by Tesco by them having to keep record and follow other regulations so it helps the business by allowing them to operate legally.
Consumer law is where the law deals with issues that are from retail transactions where there is at least one person acting as an individual or a family so the national consumer law centre is where they report informs Tesco on where they can improve in identified areas. The law itself actually regulates the relationship between the customer and business (Tesco) which provide goods and services the law covers , , , fraud, misrepresentation to protect the consumer so it stops Tesco from selling damaged products or false advertise as well not selling personal information they receive from loyal customers.
Employment law is where they have a contract for the employees on how long they have hired them for or how long they can work for so Tesco has to follow the legislation such as who they can hire to operate in that field as well as laws on the minimum age of workers plus the wage the average can earn as well as laws on working hours such as the workers have to take a break every so many hours. So it is relevant to Tesco because they have employees if affects the business by stating how they can treat their employees and have a minimum staff requirement so Tesco would have to hire more employees if they don’t already have that much amount of staff so it affect the business economically where they have to give more payments out to their staff and to fulfil health and safety regulations that suite the employees. There are also trade unions and employee unions which are enforced by government agencies to fight for employees laws. In labour law there are two different set of laws collective and individual where collective involves the relationship between the union such as the employer and individual law is concern for the employee rights at the work place such as safe working environment.
Competition law is there to stop monopolies that regulate business practices. In the U.K it is known as the trade practices law. The principle states that it prohibits agreements or practises that restrict free trade and competition between businesses. They also have banned abusive behaviour by a firm dominating a market. So it stops Tesco from negotiating with other similar businesses such as stopping them from selling a similar product.
Social factors-
The society within the U.K is changing into a multicultural society where it affects your life style in way or another such as what local businesses have opened what they are selling and other buildings are being built to adapt to those moving in to the country so this affects social factors.
Demographic is a small proportion of a population which are considered as consumers what they keep statistic records such as of the population where the info is broken down into age, gender, income etc. Demographic issues falls under social factors, the issues collected from research such a questionnaires are done every couple of years by the government and leading supermarkets, the issues that fall under this are population growth and decline where they not only look at the aging population of the U.K so they know who to target but also the movement of people as the migration of people who are moving from Asia and eastern Europe. Other information they gather is the level of education the average house holder has in a certain area by this they can estimate the wealth of the people so Tesco and other businesses know what products to target to these people, other issues they look at is the religion of the majority of people so they know what sort of environment they live all the information is collected in a census which is like a graph where it has a layout of all the information where they are placed on percentages such as 50 percentage of people in Bradford are from non-British backgrounds. Demographic indicators have changed in the U.K over the years, the most common change is the change in religion where those with no religion have increased, percentage of those Christian decreased, those Muslims have increased also those which other religion have also increased so to conclude there is more of multicultural society where the native religion is decreased. These changes do affect Tesco as an organisation where if they want to keep a large customer base or increase their customer base they need to show products that are relevant to those migrating in the country such as if there is a large population is eastern Europe they could advertise their traditional foods within the store to attract them so it they can successfully pull of a campaign they can attract new customers to the store. So at first it would be a challenge where they need to do market research and everything to see what nationality of people are moving in what products they are interested in such as the foods they prefer like fruit and vegetables, canned food and also what new foods they can offer. But then it does allow them to gain an opportunity if they do successfully attract a new customer base so profit would increase also would the reputation of the store would increase as well.
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