M3 Analyse how political, legal, and social factors have impacted on the 2
contrasting organisation.
Businesses can be affected for many different reasons and by many different things, such as
political, Economic and social. These factors have an effect on the economy which then leads
to large businesses having an impact. The 2 business I will be talking about in my assignment
is Tesco (which is a grocery/retail store) and McDonalds (which is a fast food restaurant).
Political Factor
National wage-There is different political factors which will affect the businesses I have
chosen. One main political factor that will affect both organisations is National minimum
wage. National Minimum wage for 25 years and older is £7.20 per hour however as a wider
range of staff working there might be students aged 16 plus the National Minimum wage for
16-17 years old is £4 per hour. As by 2017 April the National Minimum wage for 25 years and
older wage will be £7.50 and for 16-17 years old it will be £4.05. The government introduced
the national wage law, Wage to ensure that employers were paying their employees enough
to live on, and that they are getting paid for the correct amount of time. This Law has helped
to abolish cheap manual labour. This has an impact on stores like Tesco and McDonalds as;
both of the businesses are global businesses and have thousands of employees. Therefore,
due to wage increase the businesses will lose out more of their income/profits. This could
lead to the organisations boosting up the prices of their products.
Changing in government policy-Another, political factor that affects Tesco but not
McDonalds is one of the changes of government policy, which is the 5p bag. This policy was
made so people, reduce the use of single-use plastic carrier bags, and the litter they can
because, by encouraging people to reuse bags. Government did this so it improves the
economy as money spent on the bags will go back to the community such as on, parks,
outdoor facilities, community gardens and school playgrounds etc. Another policy Tesco
need to follow is health and safety training/test just like McDonalds. This government policy
does not affect McDonalds as they do give out plastic bags. However, they do have different
government policies which affect those (McDonalds) such as, hygiene test as they are a food
business. The impact that it has on both organisation is, policy such as health and safety
training, this will cost both businesses money which means it will affect their overall income.
This is because; their money is going to training the employee which has to be a must, as it’s
a government policy (health and safety training).
Recruitment-In addition, another difference between both organisations is the way both
businesses recruit employees/staff for their businesses. For example, the process of getting
recruited for Tesco is, that you must have a CV. And this CV must be handed In to the
contrasting organisation.
Businesses can be affected for many different reasons and by many different things, such as
political, Economic and social. These factors have an effect on the economy which then leads
to large businesses having an impact. The 2 business I will be talking about in my assignment
is Tesco (which is a grocery/retail store) and McDonalds (which is a fast food restaurant).
Political Factor
National wage-There is different political factors which will affect the businesses I have
chosen. One main political factor that will affect both organisations is National minimum
wage. National Minimum wage for 25 years and older is £7.20 per hour however as a wider
range of staff working there might be students aged 16 plus the National Minimum wage for
16-17 years old is £4 per hour. As by 2017 April the National Minimum wage for 25 years and
older wage will be £7.50 and for 16-17 years old it will be £4.05. The government introduced
the national wage law, Wage to ensure that employers were paying their employees enough
to live on, and that they are getting paid for the correct amount of time. This Law has helped
to abolish cheap manual labour. This has an impact on stores like Tesco and McDonalds as;
both of the businesses are global businesses and have thousands of employees. Therefore,
due to wage increase the businesses will lose out more of their income/profits. This could
lead to the organisations boosting up the prices of their products.
Changing in government policy-Another, political factor that affects Tesco but not
McDonalds is one of the changes of government policy, which is the 5p bag. This policy was
made so people, reduce the use of single-use plastic carrier bags, and the litter they can
because, by encouraging people to reuse bags. Government did this so it improves the
economy as money spent on the bags will go back to the community such as on, parks,
outdoor facilities, community gardens and school playgrounds etc. Another policy Tesco
need to follow is health and safety training/test just like McDonalds. This government policy
does not affect McDonalds as they do give out plastic bags. However, they do have different
government policies which affect those (McDonalds) such as, hygiene test as they are a food
business. The impact that it has on both organisation is, policy such as health and safety
training, this will cost both businesses money which means it will affect their overall income.
This is because; their money is going to training the employee which has to be a must, as it’s
a government policy (health and safety training).
Recruitment-In addition, another difference between both organisations is the way both
businesses recruit employees/staff for their businesses. For example, the process of getting
recruited for Tesco is, that you must have a CV. And this CV must be handed In to the
