Social,
Legal and Political Issues/Factors
Social issues have gone on for a long time in the business world, and even today some of
us suffer not receiving a ‘promotion’ purely because we are slightly different
in how we look, think or work. There is an on-going increase in the population
too, which means that there is a greater increase and demand for goods and
services. However, this does address the issue on finding more employees,
considering that there are many people without jobs. There are more single
families and households then there was 20 years ago in the UK. This could help
businesses like Tesco since it means that they will want to buy quick and easy
to make food. Many jobs now require an adequate level of education and ICT
skills though, which can cancel out many people to employ since they might not
have had the opportunity to earn a degree, or some sort of higher education.
Not only this, women in the business industry receive far less than the average
male. 50% of people who are working today are female, which is a lot higher
than 10 years ago.
Political issues and factors include political stability, meaning that businesses will know where they are for the next 5 years, therefore
can divide out a plan. Government support
in the private sector includes
giving out support and different grants to certain businesses as guidance and
help. This support also makes sure that businesses act in a correct way. In the
Voluntary Sector, the government will provide grants of money to a business,
and also provide tax relief for businesses such as charities. The Government will cover any loses made, health,
education and welfare services to businesses in the Public Sector. Furthermore,
the UK is a member of the European Union, which means that UK businesses are
able to trade and transport goods easily with other members. The EU allows free
movement of goods, money and people to help businesses work together more
efficiently.
Legal issues include providing a
framework for a business, known as the ‘Company
Law’. The Company Act is a great way to find out information for a
business, and means that you can find any criminal records or how much the
business will be in debt by. Protecting
customers and employees is also very important; it covers agreements in
regard to loans, overdrafts and credit cards. Also, it includes laws on
borrowing/credit offered by businesses. The
Employment Law on the other hand, means that all employees are protected by
certain laws. Some of these laws include working time directive, minimum wage
limits, equal pay and laws against any discrimination. Ensuring fair and honest
trading is vital for a business too, since the business could be faced with
major consequences if it is not considered as equal.
Political
Factors
UK
Tesco
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Cancer Research
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Infrastructure
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17 billion has been spent on infrastructure over the next
parliament. This means that the global rate for infrastructure has to be
improved. This will happen over a long period of time to ensure that every
part is covered. Furthermore, 10 billion will be invested in transport, 20
billion in schools and an additional 10 billion into scientific research and
resources. Tesco needs to know this since they can have a clear
understanding of the economy and the impacts of the government investing
money into different sectors.
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Other businesses, such as Cancer Research need to ensure
that they are doing the same as Tesco, since Tesco have a firm plan of what
will happen. This can be achieved by being organised with products,
advertisement and enticing the audience on a whole.
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Taxation
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Tax in the UK is a lot more changeable than tax in
China. Minimum wage in 2000 was £3.10 for UK citizens; however this has
gone up dramatically over the course of 12 years, and was £6.10 in 2012. The
minimum wage in the UK currently for 21 and over is £6.70. The minimum wage
was raised again by 60p during the course of 3 years. Tesco needs to know
what the minimum wage is so that they can decide on the amount that they will
pay their employees.
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This means that other businesses have to pay each and
every one of their staff at least the minimum wage. Unless it is a charity,
which will mean there most likely will be cuts in tax.
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China
Tesco
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Other Businesses (Cancer Research)
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Infrastructure
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Infrastructure is one of the most prioritised topics
amongst the Chinese Government. If China made the roads and rail works
better, it would mean transporting goods would be easier and the economy
would boom. This would also happen to work for telecommunications and
electricity. Stakeholders who would be affected by this would be employees,
since they would have made the store even more appealing. Also, the local
community would be affected since if the roads and rail works are made
better, it means that they will be able to commute further.
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Other businesses would need to make sure that they would
be keeping up with the standards set by businesses such as Tesco. This is
because if they don’t, then they will go into a
recession. Stakeholders who would be affected by this would be
employees, because they would have to make sure that the standards of their
service are just as good as larger businesses, such as Tesco.
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Taxation
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From 2008 to 2012, tax did not change in China at all.
Minimum wage in China was only just set in 2012, meaning that businesses
could pay the employee what they thought was right. Local Governments amongst
China all set a minimum wage for that area, which can have is disadvantages
since not all areas are fair paying.
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Other businesses will have to ensure that they do not pay
as much for their employees/workers. This is because they are a non-profit
organisation.
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Legal
Factors
UK
Tesco
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Other Businesses
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Consumer Protection
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To protect current and future consumers, the product the
business Is selling must be of high standard. This means the product cannot
be damaged in any way. Suppliers would have to make sure that
their products they are supplying Tesco with are of a high standard and
quality, if not, they could face the consequence of Tesco finding another
supplier.
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Since this is a non-profit organisation (charity), it
should make sure the item is sellable and not broken, however since most of
the products a charity shop stocks are second hand, it would be hard to
ensure this.
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Competition Law
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This law protects Tesco and employees at Tesco from any
disruptive/incorporative behaviour amongst the customer’s buying/browsing
products. This also means that the competition law will benefit Tesco when
they sell products for cheaper than everyone else. Since this will mean that
the customers will be more interested in getting the best deal, and therefore
go to Tesco.
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This will benefit other businesses and charities since it
will protect them from any kind of upsetting behaviour taken place by a
customer. All businesses must comply with this law; otherwise they face
serious legal consequences.
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China
Tesco
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Other Businesses
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Consumer Protection
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This would benefit Tesco since if a dominant position were
to be abused in any way, they would receive full care and time off. However,
this does not cover the issue of minimum wages changing across all areas in
China.
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Other Businesses, like Cancer Research would have to do
the same as Tesco, and report reviews of employees and staff to ensure
nothing is going wrong.
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Competition Law
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There is no price fixing in China, therefore Tesco could
charge more/less for products and could benefit highly from this.
Furthermore, they would also be able to use local suppliers in the
area.
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No cartels are allowed within regulations from the
competition law, and there also includes laws on monopoly power. However,
suppliers do get treatment for their long and tedious hours.
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Social Factors
UK
Tesco
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Other Businesses
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Environment
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The government is working on protecting the environment we
live in today by reducing pollution. This will come about by finding a new
method of making energy and fuel, or more simple objectives like planting
more trees in the area. Helping out the environment will reduce landfill
sites though, and this means that Tesco can have more options when it comes
to packaging their products. The local community would be affected by
changes in the environment by Tesco, since it will most likely be changes in
the area they live in.
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Other businesses, such as charities tend to be very
mindful when it comes to the topic of the environment. They tend to use
biodegradable plastic bags so they don’t harm the environment and
wildlife.
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Population
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When the population booms, there are more people living in
that certain area. This means more customers spending money on products and
more people to employ. However this also does mean that there will be more
deaths, and as Tesco is a very large scaled company, it could set up funeral
services.
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Population increase can benefit other businesses since
there will be more people, and more children. This can escalate on to the
idea that there will be more of a need for children’s items, such as
clothing/uniform and toys.
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China
Tesco
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Other Businesses
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Environment
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China is one of the most populace nations on the whole
Earth. This can come with perks however many downfalls too. China has to
provide resources for each citizen who wants to buy from Tesco too, making
suppliers and producers highly in demand. China has a very high
pollution rate, and this means the local community will suffer unless
positive impacts are made.
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Environmental factors for other businesses and charities
may include air pollution, water pollution, and desertification and habitat
loss. All of this can massively affect the economy in China since it can move
citizens out and around areas.
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Population
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Chinas population rank rates first in the whole world. It
has roughly a 20% average of the world’s population. This means that Tesco
will have many opportunities to high new/more employees.
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Other businesses will have to follow the same plan as
Tesco, and try to employ as many people when the economy reaches its boom
stage. Otherwise, it may fall rapidly and leave these other businesses and
charities with nothing.
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