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Unit 1 - The Business Environment Task 4 P6, M3, D2

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This is the full Unit 1 Task 4 which includes P6, M3, D2. I received all distinctions for my work. Do not copy word for word as this is a copyrighted piece of work and copying will be an act of Plagiarism. Describe how political, legal and social factors are impacting on the business activities of the 2 selected contrasting organisations and their stakeholders. Analyse how these external factors have impacted on these 2 contrasting organisations. For 1 BUSINESS ONLY evaluate how future changes in these factors may impact on the business strategy.

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PEST analysis for Cineworld & NSPCC:
Political factors:

Cineworld - There are certain policies set by the government in which Cineworld must abide
by. For instance, the government can create a policy that would alter the social behaviour in
the business environment such as imposing more taxes on a specific sector rendering
investors to lose interest in that sector. The government could also set regulations that would
affect Cineworld such as those of which regard food standards. Food standards the
government requires businesses to follow would mean that Cineworld would have to ensure
that their popcorn, sweets and other goods they sell met the government’s regulations.

NSPCC – The political factors that come to affect the business of NSPCC are centred on the
economic difficulties that have brought reductions in government spending in
community/voluntary areas which in turn has made an impact on the amount of work done in
the charity. The Government has a big responsibility to provide for causes such as the
NSPCC simply because childhood murders and child abuse are so often being reported within
the media. The charity itself urges the Government to protect children and improve upon
child safety.

Economic factors:

Cineworld - The economic factors are economic growth, interest rates, exchange rates and
inflation rates. Cineworld has proven to be successful under the economic factors that could
have caused issues for the business. This is because Cineworld offer jobs and employ people
in the local area into their business. Not only does Cineworld employ these people but they
also offer training to them. By doing this Cineworld has helped lower the unemployment rate.

NSPCC – During economic downfalls, NSPCC suffered as many people who would normally
donate money to the business are instead being very careful of where their money is going
and would rather save money than give it away. However, as the economy has been healing
over the recent years, more people are starting to again provide NSPCC with donations as
whenever the economy is getting better, people start to release (spend) their money more.

Social factors:

Cineworld - The social factor allows businesses to analyse the socio-economic environment
of its market through things such as how the society and culture is developing. If individual’s
attitudes change to watching movies in a cinema, Cineworld need to alter their strategies in
order to change the individual’s attitudes so that they may come to the business repeatedly to
watch more and more movies.

Their strategies towards social factors are them showing mostly children’s movies during the
weekends. This chosen strategy by Cineworld means that they are unique from their local and
national competitors. Also, more and more families are starting to visit the business together
rather than separately.


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Catherine Richards, Rob Dransfield BTEC Level 3 National Business Student Book 2
Publisher: mei 2010 ISBN: 9781846906343 Edition: 3

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