Task 1
P6
As part of this report I have exploring the political, social, and legal factors and how they affect
and impact business activities of Tesco and Oxfam and how they affect their stakeholders.
Oxfam is an international confederation of charitable organisations, it has been working on the
global poverty since 1942 which is the year that was founded in Oxford due to the Second
World War consequences to fight hunger. It is formed by 18 non-governmental organisations
which means, no profit organisation that doesn’t depends on government.
Tesco is a British multinational grocery and general merchandise retailer, it is the third largest
retailer in the world measured by profits and the fifth largest retailer in the world measured by
revenues, and it has around 7,200 stores in 14 countries around the world and 450,000
employees.
In a business there are different factors that affect companies positively as well negatively
these factors are political, social and legal.
Political factors is an activity related with the government policy and its administration
practises, it is an external constrain on a company, meaning that the impact comes from
outside the organisation it also has the potential to influence a business.
Social factors are the things that affect and influences people lifestyle and personality for
example family, wealth, religion. It is fundamental for an organisation to be aware of these
factors that influences people and their preferences, so companies can make their products for
the customer needs.
Legal factors are things and laws that the government or higher authorities that have an effect
in how a business should run and work, it is also related with political factors.
political factors
Taxation, taxes are charged by national and local government, taxes are financial charges
imposed upon a taxpayer, there are different purposes of taxation, fiscal purposes, which is
the tax collected to satisfy public needs for example fiscal purposes are used to improve the
public transport or education and so on, Extra-fiscal purposes, which is the tax collected to
satisfy a public interest or need for example cigarettes and alcoholic drinks, and joint purposes
which is the tax collected to carry out fiscal and extra-fiscal purposes.
Tesco and Oxfam are affected by taxation because if there’s an increase on tax companies
would have serious consequences on their activities and production, because they would have
to pay more to government and it will affect their after-tax income. Business structures, hiring
employees or voluntaries and profits (Tesco) will be also affected by taxation.
The next political factor is political stability, political stability is a government balance, it affects
Tesco and Oxfam because it will damage future plans and objectives, so if there is a lack of
political stability it will affect the operations of the organisation, and Tesco and Oxfam as
international organisations will get more affected than organisations that operates on a
national level. For example, the exit of the UK of the EU will cause economic and political
changes that will affect Tesco and Oxfam in many ways for example in Tesco it will affect the
P6
As part of this report I have exploring the political, social, and legal factors and how they affect
and impact business activities of Tesco and Oxfam and how they affect their stakeholders.
Oxfam is an international confederation of charitable organisations, it has been working on the
global poverty since 1942 which is the year that was founded in Oxford due to the Second
World War consequences to fight hunger. It is formed by 18 non-governmental organisations
which means, no profit organisation that doesn’t depends on government.
Tesco is a British multinational grocery and general merchandise retailer, it is the third largest
retailer in the world measured by profits and the fifth largest retailer in the world measured by
revenues, and it has around 7,200 stores in 14 countries around the world and 450,000
employees.
In a business there are different factors that affect companies positively as well negatively
these factors are political, social and legal.
Political factors is an activity related with the government policy and its administration
practises, it is an external constrain on a company, meaning that the impact comes from
outside the organisation it also has the potential to influence a business.
Social factors are the things that affect and influences people lifestyle and personality for
example family, wealth, religion. It is fundamental for an organisation to be aware of these
factors that influences people and their preferences, so companies can make their products for
the customer needs.
Legal factors are things and laws that the government or higher authorities that have an effect
in how a business should run and work, it is also related with political factors.
political factors
Taxation, taxes are charged by national and local government, taxes are financial charges
imposed upon a taxpayer, there are different purposes of taxation, fiscal purposes, which is
the tax collected to satisfy public needs for example fiscal purposes are used to improve the
public transport or education and so on, Extra-fiscal purposes, which is the tax collected to
satisfy a public interest or need for example cigarettes and alcoholic drinks, and joint purposes
which is the tax collected to carry out fiscal and extra-fiscal purposes.
Tesco and Oxfam are affected by taxation because if there’s an increase on tax companies
would have serious consequences on their activities and production, because they would have
to pay more to government and it will affect their after-tax income. Business structures, hiring
employees or voluntaries and profits (Tesco) will be also affected by taxation.
The next political factor is political stability, political stability is a government balance, it affects
Tesco and Oxfam because it will damage future plans and objectives, so if there is a lack of
political stability it will affect the operations of the organisation, and Tesco and Oxfam as
international organisations will get more affected than organisations that operates on a
national level. For example, the exit of the UK of the EU will cause economic and political
changes that will affect Tesco and Oxfam in many ways for example in Tesco it will affect the
