Unit 1 – The business environment
Pass criteria 6 Merit criteria 3 Distinction criteria 2
P6 – describe how describe how political, legal and social factors are impacting upon the
business activities of the selected organisations and their stakeholders.
M3 – analyse how political, legal and social factors have impacted on the two contrasting
organisations.
D2 – evaluate how future changes in economic political, legal and social factors, may
impact on the strategy of a specified organisation.
Political factors impact business activities. These political factors are – political stability,
government support, taxation, direct support, infrastructure provisions, enhancing the skills
of the working population, organisations that support businesses, and membership of
international trading communities.
Political stability – is good for businesses because it means that they can forecast what
agendas are going to be put into place if they know what political party is going to be in
power
Government support for different types of organisations – the government will support
organisations differently depending on whether they are part of the private, voluntary or
public sector. For businesses that are part of the private sector the government will try to
ensure that bigger businesses aren’t abusing their position of power, they will also offer
grants to smaller businesses. If a business is part of the voluntary sector they will be eligible
for tax relief as a way of the government saying that they support what they do. The
government are responsible for businesses that are part of the public sector and the
government will be paying for the losses.
Taxation – Organisations are taxed by the government for different things. There are five
different main taxes; corporation tax, income tax, national insurance tax, value-added tax,
and customs duty. Some organisations may be exempt from paying certain taxes. Taxes can
help the government to discourage certain activities such as smoking and drinking.
Direct support – The government may want to encourage certain activities such as a new
business or for a current business to start a local project that would help surrounding
communities so they would grant them some money, the grant does not have to be paid
back. The government may also give out loans which do have to be paid back but the
interest is a lot smaller than from a bank or private loan company.
Providing infrastructure – The government is responsible for ensuring that transport links
are maintained and fully functional. The infrastructure of the UK supports the economy and
is responsible for the functioning of it. The infrastructure includes communications links,
transport networks and internet and telephone systems, the government isn’t responsible
for telephone systems anymore because it has been privatised.
Enhancing skills of the working population – The government has certain schemes to try to
ensure that work is accessible to as many people as possible. The government runs an
organisation called the job centre plus, this is an organisation that tries to get people back
Pass criteria 6 Merit criteria 3 Distinction criteria 2
P6 – describe how describe how political, legal and social factors are impacting upon the
business activities of the selected organisations and their stakeholders.
M3 – analyse how political, legal and social factors have impacted on the two contrasting
organisations.
D2 – evaluate how future changes in economic political, legal and social factors, may
impact on the strategy of a specified organisation.
Political factors impact business activities. These political factors are – political stability,
government support, taxation, direct support, infrastructure provisions, enhancing the skills
of the working population, organisations that support businesses, and membership of
international trading communities.
Political stability – is good for businesses because it means that they can forecast what
agendas are going to be put into place if they know what political party is going to be in
power
Government support for different types of organisations – the government will support
organisations differently depending on whether they are part of the private, voluntary or
public sector. For businesses that are part of the private sector the government will try to
ensure that bigger businesses aren’t abusing their position of power, they will also offer
grants to smaller businesses. If a business is part of the voluntary sector they will be eligible
for tax relief as a way of the government saying that they support what they do. The
government are responsible for businesses that are part of the public sector and the
government will be paying for the losses.
Taxation – Organisations are taxed by the government for different things. There are five
different main taxes; corporation tax, income tax, national insurance tax, value-added tax,
and customs duty. Some organisations may be exempt from paying certain taxes. Taxes can
help the government to discourage certain activities such as smoking and drinking.
Direct support – The government may want to encourage certain activities such as a new
business or for a current business to start a local project that would help surrounding
communities so they would grant them some money, the grant does not have to be paid
back. The government may also give out loans which do have to be paid back but the
interest is a lot smaller than from a bank or private loan company.
Providing infrastructure – The government is responsible for ensuring that transport links
are maintained and fully functional. The infrastructure of the UK supports the economy and
is responsible for the functioning of it. The infrastructure includes communications links,
transport networks and internet and telephone systems, the government isn’t responsible
for telephone systems anymore because it has been privatised.
Enhancing skills of the working population – The government has certain schemes to try to
ensure that work is accessible to as many people as possible. The government runs an
organisation called the job centre plus, this is an organisation that tries to get people back
