Unit 1 P6
There are 3 different factory who have impact on the businesses. Business people need to know
about the changes and decisions made by the government, changes in the law and changes that take
place in society over time.
Political factors
A political factor is an activity related to the government policy and its administrative practices that
can have an effect on something the persons who make that decisions are politicians. Their decisions
involve many people or businesses in the county or all over the world. Also IKEA is an business that is
involved with this factor. For example the International and European trade regulation or the level of
corporate and consumer taxation.
Social factors
Social factors are the experiences that influence individuals, personality, attitudes and lifestyle.
The marketing department of a business needs to take into account the various social factors
characteristic of the consumer groups it is targeting to help increase a product's appeal to those
potential buyers. For example IKEA is busy with the lifestyle of people and to make money they have
to follow the latest trends so the people will buy their products.
Legal factors
Legal factors are related to the law or directives governing how businesses behave. This can be in a
relation with other businesses, customers or the environment. IKEA is also involved with legal
factors. For example: IKEA isn’t allowed to let young children make the products and the employees
must get enough paid to live and to pay the taxes of the house.
IKEA
Before a store of IKEA can be opened, many political and legal factors will be faced. They need to
have licenses to get permission to build the large store. They also face other political factors such as
taxes. Ikea have to pay taxes to the government. And just like I said under the legal factors, IKEA isn’t
allowed to led young children make their products, because that is child labor.
Also social factors play a big role at IKEA. When people have less to spend, they will not buy new
furniture so fast because that isn’t necessary. But when they have to spend a little more, they may
will buy new kind of furniture more often because they like another style.
There are 3 different factory who have impact on the businesses. Business people need to know
about the changes and decisions made by the government, changes in the law and changes that take
place in society over time.
Political factors
A political factor is an activity related to the government policy and its administrative practices that
can have an effect on something the persons who make that decisions are politicians. Their decisions
involve many people or businesses in the county or all over the world. Also IKEA is an business that is
involved with this factor. For example the International and European trade regulation or the level of
corporate and consumer taxation.
Social factors
Social factors are the experiences that influence individuals, personality, attitudes and lifestyle.
The marketing department of a business needs to take into account the various social factors
characteristic of the consumer groups it is targeting to help increase a product's appeal to those
potential buyers. For example IKEA is busy with the lifestyle of people and to make money they have
to follow the latest trends so the people will buy their products.
Legal factors
Legal factors are related to the law or directives governing how businesses behave. This can be in a
relation with other businesses, customers or the environment. IKEA is also involved with legal
factors. For example: IKEA isn’t allowed to let young children make the products and the employees
must get enough paid to live and to pay the taxes of the house.
IKEA
Before a store of IKEA can be opened, many political and legal factors will be faced. They need to
have licenses to get permission to build the large store. They also face other political factors such as
taxes. Ikea have to pay taxes to the government. And just like I said under the legal factors, IKEA isn’t
allowed to led young children make their products, because that is child labor.
Also social factors play a big role at IKEA. When people have less to spend, they will not buy new
furniture so fast because that isn’t necessary. But when they have to spend a little more, they may
will buy new kind of furniture more often because they like another style.
