BTEC Business Unit 1 P6
P6
For this assignment, I will be describing how political, legal and social factors are impacting upon the business activities of Wal-Mart and Tfl. For businesses, this is important because they need to know how these change such as political decisions made by the government or changes to the law or changes that take place in society over time is going to affect their business.
Political Factors
Political factors is an external environment in which a business functions. This is a type of external constraint for a business and are related to actions of governments. This factors can affect how the business operates. Political factors include politicians, who make important decisions. These can be done at national level at the UK parliament. This is because the UK is a representative democracy, who has a member of parliament that are elected. There are political parties who with the most Members of Parliament run the country. This party is led by the Prime Minister who appoints the Cabinet of Ministers in charge of key areas of the government.
Political stability is the durability and integrity of a current government regime. This is determined based on the amount of violence and terrorism expressed in the nation and by citizens associated with the state. A stable society is one that is satisfied with the ruling party and system of operations and is not interested in revolutionary or despotic ideas. For businesses, they hate instability. Businesses operates according to forecasts and scenarios about the future so instability is not what they want. Political stability is important for Wal-Mart because the society is satisfied so that this provides a platform for Wal-Mart to sell their goods. However if the is political instability in the UK, it affects the decision making process and their profits. This is because the confidence in the economy will go down and customers will be less likely to spend. For Tfl, political stability is important because as the
For this assignment, I will be describing how political, legal and social factors are impacting upon the business activities of Wal-Mart and Tfl. For businesses, this is important because they need to know how these change such as political decisions made by the government or changes to the law or changes that take place in society over time is going to affect their business.
Political Factors
Political factors is an external environment in which a business functions. This is a type of external constraint for a business and are related to actions of governments. This factors can affect how the business operates. Political factors include politicians, who make important decisions. These can be done at national level at the UK parliament. This is because the UK is a representative democracy, who has a member of parliament that are elected. There are political parties who with the most Members of Parliament run the country. This party is led by the Prime Minister who appoints the Cabinet of Ministers in charge of key areas of the government.
Political stability is the durability and integrity of a current government regime. This is determined based on the amount of violence and terrorism expressed in the nation and by citizens associated with the state. A stable society is one that is satisfied with the ruling party and system of operations and is not interested in revolutionary or despotic ideas. For businesses, they hate instability. Businesses operates according to forecasts and scenarios about the future so instability is not what they want. Political stability is important for Wal-Mart because the society is satisfied so that this provides a platform for Wal-Mart to sell their goods. However if the is political instability in the UK, it affects the decision making process and their profits. This is because the confidence in the economy will go down and customers will be less likely to spend. For Tfl, political stability is important because as the