Mr Bux - P6 Describe how political, legal, and social factors are impacting upon the
. Business activities of the selected organisations and their stakeholder
Heathrow Expansion (3rd Runway & Terminal 6)
Political effect Number 1 (Marriott &Watermans)
The Heathrow expansion will cause Marriott to have more customers due to the increase in
population and people demanding somewhere to stay whilst they are in the area. This means that,
there will be more customers and the income that Marriott are getting from them will be higher.
Therefore Marriott will be able to grow and become a more profitable business. This benefits the
government as they get tax from Marriott’s income, so if Marriott’s income is higher, then the
government gets more money. This factor is beneficial to Marriott as well as the Government
because if Marriott grows, then the government’s income rises. Marriott will be able to sell more
rooms and sell more services at their restaurant and bar which are both business activities for
Marriott.
Watermans will also be affected in a similar way. The people who are coming from Heathrow are
looking for tourist attractions and entertainment and this is what Watermans supplies. This means
that Watermans will have an increase of customers as there will be a higher population from the
third runway. Therefore Watermans will be getting more income from their customers and would
have less support from the government. The result of this would be that Watermans would be able
to become a more independent business and eventually be able to run efficiently without the
government funding them. The outcome of Watermans becoming an independent company would
mean that they would get taxed from their income if they became their own theatre rather than
being owned and funded by the government. The Heathrow expansion would benefit both
Watermans by allowing them to become their own business and would also benefit the government
as they would not need to fund the theatre and would then be getting tax from them instead.
Political Effect Number 2 (Marriott &Watermans)
As Marriott are in the private sector, they get their income from customers and shareholders. The
Heathrow expansion has a positive effect on Marriott because they will be getting more customers
coming from Heathrow which will cause Marriott to make a greater profit. This means that as a
private sector company, they will be able to grow but at the same time they will have to be paying
more tax due to their income being higher. As Marriott are getting more customers, they may need
to provide a source of transport to them. For example, they may need to make buses for people
staying at Marriott to get to Heathrow or even to get to places around the area, Such as a tour guide
to show people around Hounslow or even London. One more factor that would affect Marriott
would be that more people in the hotel would be demanding internet, which means that Marriott
would need to get more internet connections in each of the rooms or they would need to get better
internet so that the customers can use it without any issues.
Watermans are in the private sector as they do make their money from their customers but they are
also highly funded by the government. If the government are in a recession and are unable to spend
money on things such as theatres and entertainment then Watermans would have a lower income
and therefore would have to rely mostly on the customers to support their company. The Heathrow
expansion can help to solve this problem because it is causing the population to grow and the
demand for entertainment would rise. This means that, Watermans would have more customers so
. Business activities of the selected organisations and their stakeholder
Heathrow Expansion (3rd Runway & Terminal 6)
Political effect Number 1 (Marriott &Watermans)
The Heathrow expansion will cause Marriott to have more customers due to the increase in
population and people demanding somewhere to stay whilst they are in the area. This means that,
there will be more customers and the income that Marriott are getting from them will be higher.
Therefore Marriott will be able to grow and become a more profitable business. This benefits the
government as they get tax from Marriott’s income, so if Marriott’s income is higher, then the
government gets more money. This factor is beneficial to Marriott as well as the Government
because if Marriott grows, then the government’s income rises. Marriott will be able to sell more
rooms and sell more services at their restaurant and bar which are both business activities for
Marriott.
Watermans will also be affected in a similar way. The people who are coming from Heathrow are
looking for tourist attractions and entertainment and this is what Watermans supplies. This means
that Watermans will have an increase of customers as there will be a higher population from the
third runway. Therefore Watermans will be getting more income from their customers and would
have less support from the government. The result of this would be that Watermans would be able
to become a more independent business and eventually be able to run efficiently without the
government funding them. The outcome of Watermans becoming an independent company would
mean that they would get taxed from their income if they became their own theatre rather than
being owned and funded by the government. The Heathrow expansion would benefit both
Watermans by allowing them to become their own business and would also benefit the government
as they would not need to fund the theatre and would then be getting tax from them instead.
Political Effect Number 2 (Marriott &Watermans)
As Marriott are in the private sector, they get their income from customers and shareholders. The
Heathrow expansion has a positive effect on Marriott because they will be getting more customers
coming from Heathrow which will cause Marriott to make a greater profit. This means that as a
private sector company, they will be able to grow but at the same time they will have to be paying
more tax due to their income being higher. As Marriott are getting more customers, they may need
to provide a source of transport to them. For example, they may need to make buses for people
staying at Marriott to get to Heathrow or even to get to places around the area, Such as a tour guide
to show people around Hounslow or even London. One more factor that would affect Marriott
would be that more people in the hotel would be demanding internet, which means that Marriott
would need to get more internet connections in each of the rooms or they would need to get better
internet so that the customers can use it without any issues.
Watermans are in the private sector as they do make their money from their customers but they are
also highly funded by the government. If the government are in a recession and are unable to spend
money on things such as theatres and entertainment then Watermans would have a lower income
and therefore would have to rely mostly on the customers to support their company. The Heathrow
expansion can help to solve this problem because it is causing the population to grow and the
demand for entertainment would rise. This means that, Watermans would have more customers so
