P6M3 How does political, legal and social factors impact business activities of selected organisations and their stakeholders
Nike
Political factors: Politics can Nike.in both negatively and positively through changes made to tax, labor and national security laws. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing the company in the long run as people spend less money on goods and services. Alternatively, Nike profit when citizens receive tax incentives.
Nike would respond accordingly to the games of politics. From increasing interest rates to adjusting their demographic models.
Legal Factors: Businesses can be affected by many aspects of government policy. In particular, all businesses must comply with the law. They must also consider the impact of any forthcoming legislation on their operations. This may require taking action before the legislation comes into effect. One issue that affects manufacturers and retailers of electronic goods is the disposal of these products at the end of their life. Recycling is high on the public agenda. There are government initiatives to promote more recycling. These initiatives are sometimes backed by legislation. For example, the Waste Electrical and Electronic Equipment (WEEE) regulations are designed to reduce the amount of electronic waste going to landfill sites. Businesses must obey these environmental laws. However, a company that goes further by taking other measures to minimize its environmental impact will be seen more favorably by consumers. Another is how they’re manufactured; trade unions and government auditors may inspect the work environment which will have an impact on production. They will see that the workers are being treated well by law and see that they get their fair share Likewise for Nike.inc; their manufacturing outputs will be closely monitored.
Social Factors: Society is continually changing. For example, tastes and fashions constantly change. As an example, consider the growing popularity of social media such as Facebook, especially among younger people. Unlike their parents, young consumers have been brought up in an age where mobile phones and computers are used every day. Young customers are more likely to use digital technology, to shop online and to prefer online methods to print images. Older generations are more likely to stick to traditional methods. For example, they are more likely to want to have their photos developed and printed in-store. Businesses will adapt to this norm and start to cater to the needs of the new generations and start to create online services to maximize profits. Nike.inc now have raced ahead of the game by providing tons of new features online that will attract the younger generation or those who would prefer to order via online and customize their desired product. This feature alone was a boundless success for Nike.inc. This is a direct impact on distribution and manufacturing. Nike has to specifically manufacture customized clothing and wear and have to directly deliver it to the customers.

NHS
Political: Political actions may have repercussions or benefits, similar to Nike. If politicians raise the standards of health & quality within NHS, they will be directly funded by the government. NHS is affected by the government type and stability within parliament.
Legal: Government laws will be in instant affect with NHS and other businesses, regulation and de regulations trends will also affect the NHS. All organisations must be careful to keep within the law and to anticipate ways in which changes in laws will affect the way they must behave.

Social: Population growth rate and age profile is data the NHS will have to update constantly. Social impacts relate to change is society and social structures. Changes in the structure of the population, and in consumer lifestyles and behaviour affect buying, treating and disease patterns, something the NHS will have to continuously adapt to. M3 contrasting businesses
There are many legal, government and social factors that affect both NHS and Nike.inc, analyzing them is also important.
One of the factors that affects business, and even charities and public services like NHS is simply GDP. As we know, analysts use GDP to measure whether or not a country is submerging below negative, which means a recession. It is an accurate indication of a countries output, while GDP per capita has a close correlation with the trend in living standards over time.
Another factor is taxation. Corporate tax is currently around 21%. Tax is a sum of cash that businesses have to give to the government annually, monthly or maybe every 6 months. The sum is calculated by the businesses overall income by the end of the set tax day, then takes the set % from that sum.
Legal: Minimum wage actdirectly affects every single organisation. The minimum wage act means that all workers receive, at the least, the minimum wage. Currently it is around £6.31 an hour. If businesses fail to provide this, employees can take legal action. Health and safety at work act also directly dictates a company’s work environment, thus, business overall. It is an Act to make further provision for securing the health, safety and welfare of persons at work, for protecting others against risks to health or safety in connection with the activities of persons at work, for controlling the keeping and use and preventing the unlawful acquisition, possession and use of dangerous substances, and for controlling certain emissions into the atmosphere; to make further provision with respect to the employment medical advisory service; to amend the law relating to building regulations, and the Building (Scotland) Act 1959; and for connected purposes.
Social: Environmental awareness, recycling, sustainable resources, healthy eating and hygienic standards greatly affect that way a business goes about its work. For example, a business that disposes used plastic bottles by simply dissolving them in furnaces will be widely frowned upon as they’re not being properly disposed of & they’re not being recycled. Environmentalists may protest which is a bad for word of mouth and overall reputation and sales of a business. Whether or not the resources a business uses to produce their goods will be took into account, is it sustainable? Are they environment friendly? Ethical and correct?