Unit 1 M3 – Analyse how Political, Legal and Social factors are impacting upon the business activities
of selected organisations and their stakeholders.
The two organisations I will be looking at are Marriott Hotel and Watermans Theatre.
Business people need to know about changes that are taking place as a result of political
decisions made by the government, changes in the law and changes that take place in
society over time.
Political Factors:
Enhancing the skills of the working population
Education and training helps to increase the skills of the working population and people who
are preparing to work. The government provide a range of training courses that are
available through various industry training schemes, for example, the construction industry,
motor vehicle and so on. This is able to benefit Marriott because if the working population is
more skilled then this would make their employees more skilled. Although this can help
Marriott to improve their company and work efficiently, it also makes other companies
better as their employees would be more skilled. This means that Marriott will have more
competition and Marriott’s competition will be harder to beat. An example of this would be
comparing Marriott Hotel and Hilton Hotel. Marriott is a good hotel but if the Hilton Hotel’s
staff begin to increase their standards and have better quality and better staff, then this
would make them a more difficult opponent to beat within the market. This can change how
Marriott functions as their staff would be just as skilled as other staff members at other
hotels so Marriott would have to become better with their service to overcome
competition. Watermans are affected by this as it could potentially increase the skills that
their employees have within their work but it would not do them much benefit as much as it
is a performing arts. Companies such as Watermans are not entirely based on their staff
being skilled but it will be able to make their company run better if it is being run by people
who are more skilled.
Heathrow Expansion
Marriott will be affected in by the Heathrow expansion because they are a business that get
a lot of their money from Heathrow airport as many tourists or people leaving the country
need a hotel to stay in whilst they are waiting over night or even throughout the day. This
means that Marriott will be targeted by tourists and will have to increase their efficiency as
well as hire more staff to keep up with the increase in customers. Marriott’s main income is
from selling services to their customers. This means that as their customers increase, so will
their sales. This could be a good thing for Marriott as they are selling more services but it
can also have a negative impact on them. The increase in customers may be too large for
Marriott to handle all at once and this may cause Marriott to lose out on their standards and
quality as they would not be able to meet all of the needs of the customers all at once.
Although it could have a negative on Marriott, it would benefit the government as Marriott
would need to employ more people due to more customers. This would lower the
unemployment rate in that area as hotels will demand for more staff. Watermans will be
affected in a similar way. They will have an increase in customers from the Heathrow
expansion and this would allow them to make more sales. Even though they are making
of selected organisations and their stakeholders.
The two organisations I will be looking at are Marriott Hotel and Watermans Theatre.
Business people need to know about changes that are taking place as a result of political
decisions made by the government, changes in the law and changes that take place in
society over time.
Political Factors:
Enhancing the skills of the working population
Education and training helps to increase the skills of the working population and people who
are preparing to work. The government provide a range of training courses that are
available through various industry training schemes, for example, the construction industry,
motor vehicle and so on. This is able to benefit Marriott because if the working population is
more skilled then this would make their employees more skilled. Although this can help
Marriott to improve their company and work efficiently, it also makes other companies
better as their employees would be more skilled. This means that Marriott will have more
competition and Marriott’s competition will be harder to beat. An example of this would be
comparing Marriott Hotel and Hilton Hotel. Marriott is a good hotel but if the Hilton Hotel’s
staff begin to increase their standards and have better quality and better staff, then this
would make them a more difficult opponent to beat within the market. This can change how
Marriott functions as their staff would be just as skilled as other staff members at other
hotels so Marriott would have to become better with their service to overcome
competition. Watermans are affected by this as it could potentially increase the skills that
their employees have within their work but it would not do them much benefit as much as it
is a performing arts. Companies such as Watermans are not entirely based on their staff
being skilled but it will be able to make their company run better if it is being run by people
who are more skilled.
Heathrow Expansion
Marriott will be affected in by the Heathrow expansion because they are a business that get
a lot of their money from Heathrow airport as many tourists or people leaving the country
need a hotel to stay in whilst they are waiting over night or even throughout the day. This
means that Marriott will be targeted by tourists and will have to increase their efficiency as
well as hire more staff to keep up with the increase in customers. Marriott’s main income is
from selling services to their customers. This means that as their customers increase, so will
their sales. This could be a good thing for Marriott as they are selling more services but it
can also have a negative impact on them. The increase in customers may be too large for
Marriott to handle all at once and this may cause Marriott to lose out on their standards and
quality as they would not be able to meet all of the needs of the customers all at once.
Although it could have a negative on Marriott, it would benefit the government as Marriott
would need to employ more people due to more customers. This would lower the
unemployment rate in that area as hotels will demand for more staff. Watermans will be
affected in a similar way. They will have an increase in customers from the Heathrow
expansion and this would allow them to make more sales. Even though they are making
