Unit 1 – Business Environment
Task 4 – Impact of Political, Legal and Social Factors on Business
Pass 6 – Merit 3
Introduction:
In this assignment I will be looking at how; political; legal and social factors can impact a business
and its stakeholders in two different countries.
Political
This factor looks at how the government regulations and legal issues affect a company’s ability to be
profitable and successful. Issues that must be considered include things like; Tax Guidelines;
Copyright and Property Law Enforcement; Political Stability; Trade Regulations; Social and
Environmental Policy; Employment Laws and Safety Regulations.
Social
The Social factor analyses the demographic and cultural aspects of a business’s market. These
factors are important as they help the businesses examine consumer needs and determine what
entices them to make purchases.
Legal
Legal factors include things like – health and safety, equal opportunities, advertising standards,
consumer rights laws, product labelling and product safety. Companies need to know what is and
what is not legal in order to successfully trade. If a business trades globally this becomes a very tricky
area to get right as each country has its own set rules and regulations.
POLITICAL UK CHINA
Corporation Tax The company McDonald’s will have to For the McDonald’s branches within
pay corporation tax at a rate of 18% of the China economy the corporation tax
their profits for establishments within that has to be paid is 25% of their
the UK. This money would be spent on profits. This money is then used to help
a wide variety of things within the increase the infrastructure of the
government, things like; benefits, country.
Education, Security, infrastructure etc.
Trade When trading within the UK there are When trading for businesses within
Regulations many rules that have to be followed; China and its government different
this includes things like the tax on rules and regulations apply. This means
profits made through exporting for that the McDonald’s organisation will
businesses within the UK. This means be affected differently when operating
that if the McDonald’s company was in China. The tax percentage that is
to make any deals on an international taken off the top when trading
level, whatever money they make will internationally for China is set at 9.4%.
have a percentage taken off the top This money has meant that the
and given to the UK government to infrastructure of china has been
pay for things like; Benefits; Schooling; developed and improved constantly
Hospitals etc. making the country take advantage of
The Export Tariff for the UK is set every and any profit that can be made.
currently at 4.77%.
Jordan Beadle
Task 4 – Impact of Political, Legal and Social Factors on Business
Pass 6 – Merit 3
Introduction:
In this assignment I will be looking at how; political; legal and social factors can impact a business
and its stakeholders in two different countries.
Political
This factor looks at how the government regulations and legal issues affect a company’s ability to be
profitable and successful. Issues that must be considered include things like; Tax Guidelines;
Copyright and Property Law Enforcement; Political Stability; Trade Regulations; Social and
Environmental Policy; Employment Laws and Safety Regulations.
Social
The Social factor analyses the demographic and cultural aspects of a business’s market. These
factors are important as they help the businesses examine consumer needs and determine what
entices them to make purchases.
Legal
Legal factors include things like – health and safety, equal opportunities, advertising standards,
consumer rights laws, product labelling and product safety. Companies need to know what is and
what is not legal in order to successfully trade. If a business trades globally this becomes a very tricky
area to get right as each country has its own set rules and regulations.
POLITICAL UK CHINA
Corporation Tax The company McDonald’s will have to For the McDonald’s branches within
pay corporation tax at a rate of 18% of the China economy the corporation tax
their profits for establishments within that has to be paid is 25% of their
the UK. This money would be spent on profits. This money is then used to help
a wide variety of things within the increase the infrastructure of the
government, things like; benefits, country.
Education, Security, infrastructure etc.
Trade When trading within the UK there are When trading for businesses within
Regulations many rules that have to be followed; China and its government different
this includes things like the tax on rules and regulations apply. This means
profits made through exporting for that the McDonald’s organisation will
businesses within the UK. This means be affected differently when operating
that if the McDonald’s company was in China. The tax percentage that is
to make any deals on an international taken off the top when trading
level, whatever money they make will internationally for China is set at 9.4%.
have a percentage taken off the top This money has meant that the
and given to the UK government to infrastructure of china has been
pay for things like; Benefits; Schooling; developed and improved constantly
Hospitals etc. making the country take advantage of
The Export Tariff for the UK is set every and any profit that can be made.
currently at 4.77%.
Jordan Beadle
