Jordan Blacker
Learning Aim 4: Task 5
Radio programme research – Political, Legal and social factors
Tesco and Meopham School are both impacted differently by their political, legal and social
environment. They have each changed several things within their business in order to maintain a
popular and sustainable business. Government changes and expectations, new laws and changing
trends can easily affect a business and their sales. Businesses in the retail sector need to ensure that
they are keeping up to date with what the government want, alongside other stakeholders such as
their customers. They also need to make sure that the business can cope and uphold these changes.
Tesco are affected by political factors because the government is one of their key stakeholders and if
they begin seeing problems with Tesco then they may be discouraged as they won’t be making as
much profit from them if they begin to decline. The government are encouraging businesses to
provide a broader range of job opportunities whether they are flexible, low-paid and local, or higher
up, require specific skills and have better pay. Generally diversity is kept in place by laws but it is also
a political issue. By doing this they can adapt the business to cater for everyone’s skill sets. Political
factors also impact Tesco because they need to be able to stay current and meet demand from
different population categories whether it is students, parents, or elderly people. Tesco have
responded to these changes and demands successfully because they are aware that the retail sector
is amongst the most common to work in and has a large impact on the amount of people in
employment. Tesco employs a large number of students, disabled people and elderly people, but they
do get paid lower rates. As the retail industry is popular, Tesco have needed to stay up to date with
changes and remain following trends as well as employing people into jobs requiring different skill
sets and offering a wider range of opportunities due to government influence.
Tesco are also affected by several legal factors. There are several legislations and policies that have
impacted them as a business. The Food Retailing Commission (FRC) suggested an enforceable Code of
Practise should be set up in Tesco which banned many of their current practises such as demanding
payments from suppliers and changing agreed prices without notice. Tesco have a number of larger
and more powerful competitors and this may cause extreme price wars and stronger needs to differ
products. Tesco need to respond to government laws on competition within businesses and they need
to do so appropriately. These price wars often mean the businesses begin losing profits as they are
spending more time trying to have better prices than their competitors than they do focusing on their
profits and losses. Tesco offers consumers a price reduction on fuels based on the amount spent on
shopping at their stores. While prices are lowered on promoted products, prices elsewhere in the
store are raised to compensate. They do this so that they are still earning as much profit as they
should be, but they are also not belittling other stores by constantly changing their prices and
providing unfair opportunities to them.
Social factors can also affect businesses such as Tesco and they have to make several changes as a
response. Current trends show that UK customers have moved towards ‘one-stop’ shopping, meaning
they make one large trip rather than several smaller ones and this is due to changes in society. In
response to this, Tesco have increased the amount of non-food items that they have available for
sale. Demographic changes such as having an ageing population, an increase in female workers and
a decline in home-prepared meals mean that UK retailers are focusing on added-value products and
services. Goods and services demanded by customers changes due to their social situation, attitudes
and beliefs. Customers are becoming more aware of health issues, therefore their attitudes towards
foods are always changing. Tesco adapted their products in order to accommodate for the demand
for organic products.
Learning Aim 4: Task 5
Radio programme research – Political, Legal and social factors
Tesco and Meopham School are both impacted differently by their political, legal and social
environment. They have each changed several things within their business in order to maintain a
popular and sustainable business. Government changes and expectations, new laws and changing
trends can easily affect a business and their sales. Businesses in the retail sector need to ensure that
they are keeping up to date with what the government want, alongside other stakeholders such as
their customers. They also need to make sure that the business can cope and uphold these changes.
Tesco are affected by political factors because the government is one of their key stakeholders and if
they begin seeing problems with Tesco then they may be discouraged as they won’t be making as
much profit from them if they begin to decline. The government are encouraging businesses to
provide a broader range of job opportunities whether they are flexible, low-paid and local, or higher
up, require specific skills and have better pay. Generally diversity is kept in place by laws but it is also
a political issue. By doing this they can adapt the business to cater for everyone’s skill sets. Political
factors also impact Tesco because they need to be able to stay current and meet demand from
different population categories whether it is students, parents, or elderly people. Tesco have
responded to these changes and demands successfully because they are aware that the retail sector
is amongst the most common to work in and has a large impact on the amount of people in
employment. Tesco employs a large number of students, disabled people and elderly people, but they
do get paid lower rates. As the retail industry is popular, Tesco have needed to stay up to date with
changes and remain following trends as well as employing people into jobs requiring different skill
sets and offering a wider range of opportunities due to government influence.
Tesco are also affected by several legal factors. There are several legislations and policies that have
impacted them as a business. The Food Retailing Commission (FRC) suggested an enforceable Code of
Practise should be set up in Tesco which banned many of their current practises such as demanding
payments from suppliers and changing agreed prices without notice. Tesco have a number of larger
and more powerful competitors and this may cause extreme price wars and stronger needs to differ
products. Tesco need to respond to government laws on competition within businesses and they need
to do so appropriately. These price wars often mean the businesses begin losing profits as they are
spending more time trying to have better prices than their competitors than they do focusing on their
profits and losses. Tesco offers consumers a price reduction on fuels based on the amount spent on
shopping at their stores. While prices are lowered on promoted products, prices elsewhere in the
store are raised to compensate. They do this so that they are still earning as much profit as they
should be, but they are also not belittling other stores by constantly changing their prices and
providing unfair opportunities to them.
Social factors can also affect businesses such as Tesco and they have to make several changes as a
response. Current trends show that UK customers have moved towards ‘one-stop’ shopping, meaning
they make one large trip rather than several smaller ones and this is due to changes in society. In
response to this, Tesco have increased the amount of non-food items that they have available for
sale. Demographic changes such as having an ageing population, an increase in female workers and
a decline in home-prepared meals mean that UK retailers are focusing on added-value products and
services. Goods and services demanded by customers changes due to their social situation, attitudes
and beliefs. Customers are becoming more aware of health issues, therefore their attitudes towards
foods are always changing. Tesco adapted their products in order to accommodate for the demand
for organic products.
