D2: Introduction
In the last section of Unit 1: Business Environment, it will be focused on how
future changes in the three factors being Political, Legal and Social will impact
the chosen business strategy being River Island’s Strategy.
Political Factors
These different factors affect the businesses differently as mentioned previously
in P6/M3 being; 1. Change in the Government, 2. The Stability of the
Government and 3. Government Spending and Taxation Policies. In the long
run, these factors will further impact the business in a variety of ways. Firstly, if
the government continues to change, the businesses will also have to adapt to
the change. With Brexit in place, new laws with also begin to take place, which
will cause change in the businesses and might prevent the business from
making profit. Constant changes affect the stability of the government which
affects the stability of the business who will not be able to accomplish any set
goals in the near future because they are unsure if they are able to do so
because:
1. It is uncertain if the government will cause the business to be placed in a
boom or bust period.
2. It is unsure if the business will have high supply or demand.
3. The business might not have the profit to cover any additional costs when
necessary, such as lighting and electricity, advertising, repairs where
needed, etc.
Other things such as the government spending and taxation policies will affect
them. The government might have to overspend money to cover costs for any
change they make to the legislation or constitution by the executive or
legislative branches of government considering that they have the right to do
what seems fit for their country even though it may leave them or the
businesses or the people in expense or at risk. If the government is in expense
or in need of money, they may raise the taxes in the business to do so. This may
cut the profit that the business is making if the business is already not making
enough money with the other changes and factors that may affect them.
Legal Factors
These factors, being; 1. Employment Laws, 2. Health and Safety Laws, 3.
Consumer Laws and 4. Environmental Laws, affect the business. These laws are
put in place to protect the employees, consumers and the environment and to
ensure that they are provided with healthy working conditions for employees,
correct products and services that satisfy the needs of the consumers/customers
and to prevent the environment from being polluted and eventually being
endangered by the mankind. These laws can be upgraded, changed or even
removed from the law completely. In the near future, such changes in these
laws and cease and prevent a lot of acts of the business. The business might
have to constantly dismiss and recruit new employees, because they are unable
to follow the law or because the organization in which they are working for is
not abiding by said law causing employees to leave. It will be time consuming
13
In the last section of Unit 1: Business Environment, it will be focused on how
future changes in the three factors being Political, Legal and Social will impact
the chosen business strategy being River Island’s Strategy.
Political Factors
These different factors affect the businesses differently as mentioned previously
in P6/M3 being; 1. Change in the Government, 2. The Stability of the
Government and 3. Government Spending and Taxation Policies. In the long
run, these factors will further impact the business in a variety of ways. Firstly, if
the government continues to change, the businesses will also have to adapt to
the change. With Brexit in place, new laws with also begin to take place, which
will cause change in the businesses and might prevent the business from
making profit. Constant changes affect the stability of the government which
affects the stability of the business who will not be able to accomplish any set
goals in the near future because they are unsure if they are able to do so
because:
1. It is uncertain if the government will cause the business to be placed in a
boom or bust period.
2. It is unsure if the business will have high supply or demand.
3. The business might not have the profit to cover any additional costs when
necessary, such as lighting and electricity, advertising, repairs where
needed, etc.
Other things such as the government spending and taxation policies will affect
them. The government might have to overspend money to cover costs for any
change they make to the legislation or constitution by the executive or
legislative branches of government considering that they have the right to do
what seems fit for their country even though it may leave them or the
businesses or the people in expense or at risk. If the government is in expense
or in need of money, they may raise the taxes in the business to do so. This may
cut the profit that the business is making if the business is already not making
enough money with the other changes and factors that may affect them.
Legal Factors
These factors, being; 1. Employment Laws, 2. Health and Safety Laws, 3.
Consumer Laws and 4. Environmental Laws, affect the business. These laws are
put in place to protect the employees, consumers and the environment and to
ensure that they are provided with healthy working conditions for employees,
correct products and services that satisfy the needs of the consumers/customers
and to prevent the environment from being polluted and eventually being
endangered by the mankind. These laws can be upgraded, changed or even
removed from the law completely. In the near future, such changes in these
laws and cease and prevent a lot of acts of the business. The business might
have to constantly dismiss and recruit new employees, because they are unable
to follow the law or because the organization in which they are working for is
not abiding by said law causing employees to leave. It will be time consuming
13
