P6 M2
P6: Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders
M3: Analyse how political, legal and social factors have impacted on the two contrasting organisations
Political Factors
Political Stability
Political stability is crucial for Waitrose for many reasons. One of the reasons for this is because if the Government is stable it means there is a greater certainty and assurance within the business therefore allowing the business to make decisions without worrying that the business could go terribly wrong because of the government. Another reason why Waitrose like political stability is because it gives Waitrose a stable platform at which they can perform business upon, and be successful where they might not be if it were unstable. And finally political stability allows Waitrose to make longer term investment decisions for example getting long term contracts with new farmers for vegetables.
To get around the problem of a poor Government meaning it is unstable Waitrose may go for a strategy of more long term investments into products then short term because it is safer going for long term investments and because its long term there is a higher chance you can get a better and cheaper deal for the investment.
If deals on long term investments happen then better deals in the future may be the result of this because they shall be more willing to offer them better deals as they know they will be back for their business in the future. This means that both business are in a win win situation, both are making money on the products and keep each other in business but also are gaining a relationship with one another which can benefit their businesses in the long run.
The NHS like political stability because their whole business is funded by the government and they want political stability because they want as much as funding as possible to make it better for the British public
M3: Analyse how political, legal and social factors have impacted on the two contrasting organisations
Political Factors
Political Stability
Political stability is crucial for Waitrose for many reasons. One of the reasons for this is because if the Government is stable it means there is a greater certainty and assurance within the business therefore allowing the business to make decisions without worrying that the business could go terribly wrong because of the government. Another reason why Waitrose like political stability is because it gives Waitrose a stable platform at which they can perform business upon, and be successful where they might not be if it were unstable. And finally political stability allows Waitrose to make longer term investment decisions for example getting long term contracts with new farmers for vegetables.
To get around the problem of a poor Government meaning it is unstable Waitrose may go for a strategy of more long term investments into products then short term because it is safer going for long term investments and because its long term there is a higher chance you can get a better and cheaper deal for the investment.
If deals on long term investments happen then better deals in the future may be the result of this because they shall be more willing to offer them better deals as they know they will be back for their business in the future. This means that both business are in a win win situation, both are making money on the products and keep each other in business but also are gaining a relationship with one another which can benefit their businesses in the long run.
The NHS like political stability because their whole business is funded by the government and they want political stability because they want as much as funding as possible to make it better for the British public