P4 Unit 1 Business Environment
Introduction
For this task I was asked to describe how these three factors; political, legal, social factors impact on my two chosen organisation which are Tesco and Wal-Mart impact on their activities, also its stakeholders.
Political factor
Tax
Tax is an important political factor which is compulsory for everyone to pay including my two chosen organisation. The government takes tax out of my chosen organisation profit they make at the end of the month, this impacts them in a negative way as that money could be used to achieve the. Tax prevents Tesco and Wal-Mart from achieving their aim which is to maximize profits. There are different forms of tax, but I will be talking to you about corporation tax:
Corporate tax
This changes depending …show more content…
Political
Tesco has to pay corporation tax which comes out of the revenue as a cost which lowers the overall profits which the business receives this will affect them expanding/growing the business even more by maximise profits and having lots of retained profits to help keep the business expanding/growing. Tesco can be affected heavily by taxation from corporate tax, environmental tax, and even value added tax even though value added tax is put on top of the original price low prices may be compromised by VAT. Depending on how high or low the tax rates have been put the changes can be positive or negative.
Corporation tax can be lowered as well as increased; lowering the corporation tax can increase profits and can give the company more retained profits so they can expand and grow the business as a whole this is good and healthy for the company and the economy because the larger the company grows the more employees they need within the work force this will increase the employment rates/ decrease unemployment rates. This can be a major reason to the government (chancellor of exchequer) changing the corporation …show more content…
This can be a positive for Tesco as a business because this means they can increase their customer base and in time have more demand for products which will result in more sales which will help them achieve their aim to maximise profits as a company.
Why has it changed? Because in this age the government is more actively promoting healthy eating with campaigns and the National Health Service trying to stop obesity, this makes the population more aware of the problems caused by obesity this can influence people to change the way they eat and what products they buy. This can in time lower the demand for most unhealthy junk food and raise the demand for more healthy alternatives.
How does this affect the organisation? This affects the way the organisation runs as a business and the products they sell in order to satisfy their customer base and customer satisfaction is key to the survival and maximisation of revenue and in time making large profits. Tesco can change the products which they sell not necessarily getting rid of junk food because of health conscientiousness but instead making healthier food
For this task I was asked to describe how these three factors; political, legal, social factors impact on my two chosen organisation which are Tesco and Wal-Mart impact on their activities, also its stakeholders.
Political factor
Tax
Tax is an important political factor which is compulsory for everyone to pay including my two chosen organisation. The government takes tax out of my chosen organisation profit they make at the end of the month, this impacts them in a negative way as that money could be used to achieve the. Tax prevents Tesco and Wal-Mart from achieving their aim which is to maximize profits. There are different forms of tax, but I will be talking to you about corporation tax:
Corporate tax
This changes depending …show more content…
Political
Tesco has to pay corporation tax which comes out of the revenue as a cost which lowers the overall profits which the business receives this will affect them expanding/growing the business even more by maximise profits and having lots of retained profits to help keep the business expanding/growing. Tesco can be affected heavily by taxation from corporate tax, environmental tax, and even value added tax even though value added tax is put on top of the original price low prices may be compromised by VAT. Depending on how high or low the tax rates have been put the changes can be positive or negative.
Corporation tax can be lowered as well as increased; lowering the corporation tax can increase profits and can give the company more retained profits so they can expand and grow the business as a whole this is good and healthy for the company and the economy because the larger the company grows the more employees they need within the work force this will increase the employment rates/ decrease unemployment rates. This can be a major reason to the government (chancellor of exchequer) changing the corporation …show more content…
This can be a positive for Tesco as a business because this means they can increase their customer base and in time have more demand for products which will result in more sales which will help them achieve their aim to maximise profits as a company.
Why has it changed? Because in this age the government is more actively promoting healthy eating with campaigns and the National Health Service trying to stop obesity, this makes the population more aware of the problems caused by obesity this can influence people to change the way they eat and what products they buy. This can in time lower the demand for most unhealthy junk food and raise the demand for more healthy alternatives.
How does this affect the organisation? This affects the way the organisation runs as a business and the products they sell in order to satisfy their customer base and customer satisfaction is key to the survival and maximisation of revenue and in time making large profits. Tesco can change the products which they sell not necessarily getting rid of junk food because of health conscientiousness but instead making healthier food