Unit 1 – D2
Mahbub Rahman
,Mahbub Rahman – Unit 1 – D2
Table of Contents
Introduction ............................................................................................................................... 2
Possible changes in the future ................................................................................................... 2
Possible political changes .......................................................................................................... 2
Possible social changes .............................................................................................................. 3
Possible economic changes ....................................................................................................... 4
Bibliography ............................................................................................................................... 6
1|Page
, Mahbub Rahman – Unit 1 – D2
Mahbub Rahman – Unit 1 – D2
Introduction
For this task, I am going to evaluate how future changes in political, social and economic
factors may affect Mercedes-Benz’s aims and objectives. This will mainly focus on the
United Kingdom.
Possible changes in the future
The main aims and objectives of Mercedes-Benz are to maximise profits, take the lead with
new ‘green’ technologies (environmentally-friendly technology) and to constantly grow in
new markets (grow globally). These could be affected by political, social and economic
factors. There are many possible changes that could occur due to these factors in the future,
so Mercedes-Benz must be able to predict and plan with accordance to these changes, in
order to achieve these aims.
Possible political changes
One possible political change would be an increase in taxes, specifically corporation tax (a
tax on company profits) which currently stands at a record low of 19% in the United
Kingdom. An increase would negatively affect the aim of maximising profits. Increasing taxes
would mean that Mercedes-Benz would have to pay more of their profits to the
government, so profits now reach a lower maximum level. This will affect budgeting, which
in turn will affect purchasing supplies and paying employees. These affects are mostly of
concern to the functional area of finance (due to them being in charge of budgeting and
payroll), and production (as they need supplies to carry out their job and produce). It affects
Mercedes-Benz’s budgeting because their finances will become more restricted without a
change in their cash inflows, which will then make it difficult to be able to afford purchasing
supplies and to pay employees. This demonstrates which stakeholders are affected: the
employees, the suppliers and the government. The employees are clearly affected by this as
an increase in corporation tax may force Mercedes-Benz to either reduce salaries or make
redundancies due to them not being able to afford to pay them. Suppliers are affected by
this as Mercedes-Benz cannot afford to purchase as many supplies, directly affecting how
much revenue/profit the supplier makes. The government are the only stakeholder who is
impacted positively by this political change. This is because they receive the money from the
increased taxes, allowing them to increase budgets which are used to benefit the rest of the
country (possibly for healthcare or education). The affect that this political change has on
employee’s shows the direct impact it has on organisational structure. This is because the
redundancies may have to be focused on particular departments/functional areas in order
to minimise the negative impact of increased taxes. For example, Mercedes-Benz may
decide that they do not need as much staff in the marketing department compared. This
2|Page
Mahbub Rahman
,Mahbub Rahman – Unit 1 – D2
Table of Contents
Introduction ............................................................................................................................... 2
Possible changes in the future ................................................................................................... 2
Possible political changes .......................................................................................................... 2
Possible social changes .............................................................................................................. 3
Possible economic changes ....................................................................................................... 4
Bibliography ............................................................................................................................... 6
1|Page
, Mahbub Rahman – Unit 1 – D2
Mahbub Rahman – Unit 1 – D2
Introduction
For this task, I am going to evaluate how future changes in political, social and economic
factors may affect Mercedes-Benz’s aims and objectives. This will mainly focus on the
United Kingdom.
Possible changes in the future
The main aims and objectives of Mercedes-Benz are to maximise profits, take the lead with
new ‘green’ technologies (environmentally-friendly technology) and to constantly grow in
new markets (grow globally). These could be affected by political, social and economic
factors. There are many possible changes that could occur due to these factors in the future,
so Mercedes-Benz must be able to predict and plan with accordance to these changes, in
order to achieve these aims.
Possible political changes
One possible political change would be an increase in taxes, specifically corporation tax (a
tax on company profits) which currently stands at a record low of 19% in the United
Kingdom. An increase would negatively affect the aim of maximising profits. Increasing taxes
would mean that Mercedes-Benz would have to pay more of their profits to the
government, so profits now reach a lower maximum level. This will affect budgeting, which
in turn will affect purchasing supplies and paying employees. These affects are mostly of
concern to the functional area of finance (due to them being in charge of budgeting and
payroll), and production (as they need supplies to carry out their job and produce). It affects
Mercedes-Benz’s budgeting because their finances will become more restricted without a
change in their cash inflows, which will then make it difficult to be able to afford purchasing
supplies and to pay employees. This demonstrates which stakeholders are affected: the
employees, the suppliers and the government. The employees are clearly affected by this as
an increase in corporation tax may force Mercedes-Benz to either reduce salaries or make
redundancies due to them not being able to afford to pay them. Suppliers are affected by
this as Mercedes-Benz cannot afford to purchase as many supplies, directly affecting how
much revenue/profit the supplier makes. The government are the only stakeholder who is
impacted positively by this political change. This is because they receive the money from the
increased taxes, allowing them to increase budgets which are used to benefit the rest of the
country (possibly for healthcare or education). The affect that this political change has on
employee’s shows the direct impact it has on organisational structure. This is because the
redundancies may have to be focused on particular departments/functional areas in order
to minimise the negative impact of increased taxes. For example, Mercedes-Benz may
decide that they do not need as much staff in the marketing department compared. This
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