Level 3 Unit 1-P6
Describe how political, legal and social factors are impacting upon the business activities of the selected organisation and their stakeholders
Political impacts
Political stability is usually defined as the state of peace that is normal experienced in a country from the activities from the government and also the government in this situation will make decisions and keeping the best interests in mind for people.
The conservative party that is normally referred as the Tory party and is a centre – right political party in the UK and as of 2013 it has become the largest political party in the UK and also the largest single party in the house of commons with 303 MP’s. Got initiatives: is when the Government can support business through grants and tax reductions and an example of this is the solar panels grant.
Also when the government chooses to Investment finance this then involves selling part of your business (‘shares’) to an investor. The investor will then take a share of any profits or losses that the company makes.
The International Monetary Fund describes itself as “an organization of 188 countries that works to foster global monetary cooperation, to then secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduces poverty around the world.
The Government may change the tax rates up or down this will be to try help boost the economy, an example of this is VAT this means all non food and adult clothing range will need different prices on the shelf edge labels this then means staff will then have to go change the SEL’s ( shelf edge labels). Although this then will change the profitability and finance department of the company as they will then need to change the profit sheets that report back to the business.
The government have their own initiatives for companies and these are the healthy eating and fit for life, these are the type of campaigns that the supermarkets will try to support to then try get more funding or advertising for the company from the government, this is by the prime minister if he mentions how good ASDA has been supporting the certain campaigns.
Also the government are also offering support and funding to business that will or are offering apprenticeships, to then try getting more people in to a job and working life.
Legal impacts
The legal impacts are that ASDA must follow the law, and an example of this is the trade description act, this is where the product most be described accurately otherwise it can cause an issue and an example of this the big issue with meat earlier this year, so it is extremely important that you describe the product well and accurately if not then the trading standards will have no other choice but to get involved.
Consumer protection is when a group of laws and organisations have designed to ensure that the rights of consumers, these are put in place to hopefully prevent businesses that engage or are planning on engaging in fraud or specified unfair practices to try and gain or taking an advantage over competitors.
FSA is the foods standards authority, this is where they regulate the amount of salt that is allowed in products and also the amount of palm oil that is allowed in the products and this is from the sustainable rain forests.
Health and safety standards are the most important, and for all the new workers will have a full day having an induction before that are allowed to start their job, they are also shown around their work place and they are also shown the areas that they won’t be allowed to go due the dangerous machinery.
The legal frameworks is where the business chooses the way it operates, this will then determine who has what role and share to the business, this will also determine the relationships between investors, employee’s customers etc.
Social impacts -
The social impacts that ASDA may face are the difficulty to recruit the right people for the job in the stores or the offices depending on where they will be based, also most of the workers that are in the stores are an unskilled workers on the minimum wage given .
ASDA is a company that will support charities and the main one they support every year is tickled pink, they are always thing outside the past ways they have raised money to, give customers a new product to buy to support the charity.
ASDA has a company cannot discriminate anyone from having a disability, different religion or if they are pregnant and other things on this terms and when they are employed by the company or if they are in the HR Department they are then recruiting they are also not allowed to ask questions in these areas.
ASDA like to support their local community and an example ASDA helped out in a local park in Bradford, by tidying it up and planting new plants to make it look more presentable and cleaner, they also do talks in schools in local areas and give out free stock for sports days.