BTEC BUSINESS UNIT 1 – THE BUSINESS ENVIRONMENT SANJANA SUNDEEP – YEAR 12
Task P6 - Describe how political, legal
and social factors are impacting upon
the business activities of the selected
organizations and their stakeholders.
Task M3 - Analyze how political, legal
and social factors have impacted on the
two contrasting organizations.
1
, BTEC BUSINESS UNIT 1 – THE BUSINESS ENVIRONMENT SANJANA SUNDEEP – YEAR 12
The Impact of Political, Legal and Social
Factors on a Business and their Stakeholders
Introduction:
In this task I will be talking the impact of political, legal and social factors on a business and
their stakeholders. The companies I have taken for this assignment are ENOC and Siphen. An oil
and gas company and an IT Software. People need to know the changes that take place in a
business as an effect of:
Political decisions taken by the government.
Changes in the law.
Changes in the society that take place over a period of time.
Political Factors:
A Political Factor is a government action which affects the procedures of a corporation or
business. These actions may be of a local, regional, national or international level. Business
proprietors and directors pay attention to the political atmosphere of the government to see
how their activities will disturb their business. For example, the decisions taken by politicians in
making new laws, will be biased to some groups more than the others.
For ENOC, the main political factor that affects them is regulatory restrictions, that restrict
where, when and how oil is extracted. And this law/regulation changes from state to state, so
the political risk is higher when they work in countries abroad.
For Siphen, the main political factor that affects them is also regulatory restrictions and laws.
For example, in the USA, the companies that make computers are required to follow certain
laws like the GAAP law. IT companies are subject to certain laws concerning ethical business
practices.
Political Stability:
Times of political stability favors businesses. For five years, a political party is designated to
office at a national level. Once the party is elected, they will then put their strategy into action.
Businesses then use these strategies to find out how it affects their company and what the
changes will be. It will give them a certainty for a few years. ENOC follows the same strategy of
looking at manifestos and then finding out how it will affect them and their company. This way
2
Task P6 - Describe how political, legal
and social factors are impacting upon
the business activities of the selected
organizations and their stakeholders.
Task M3 - Analyze how political, legal
and social factors have impacted on the
two contrasting organizations.
1
, BTEC BUSINESS UNIT 1 – THE BUSINESS ENVIRONMENT SANJANA SUNDEEP – YEAR 12
The Impact of Political, Legal and Social
Factors on a Business and their Stakeholders
Introduction:
In this task I will be talking the impact of political, legal and social factors on a business and
their stakeholders. The companies I have taken for this assignment are ENOC and Siphen. An oil
and gas company and an IT Software. People need to know the changes that take place in a
business as an effect of:
Political decisions taken by the government.
Changes in the law.
Changes in the society that take place over a period of time.
Political Factors:
A Political Factor is a government action which affects the procedures of a corporation or
business. These actions may be of a local, regional, national or international level. Business
proprietors and directors pay attention to the political atmosphere of the government to see
how their activities will disturb their business. For example, the decisions taken by politicians in
making new laws, will be biased to some groups more than the others.
For ENOC, the main political factor that affects them is regulatory restrictions, that restrict
where, when and how oil is extracted. And this law/regulation changes from state to state, so
the political risk is higher when they work in countries abroad.
For Siphen, the main political factor that affects them is also regulatory restrictions and laws.
For example, in the USA, the companies that make computers are required to follow certain
laws like the GAAP law. IT companies are subject to certain laws concerning ethical business
practices.
Political Stability:
Times of political stability favors businesses. For five years, a political party is designated to
office at a national level. Once the party is elected, they will then put their strategy into action.
Businesses then use these strategies to find out how it affects their company and what the
changes will be. It will give them a certainty for a few years. ENOC follows the same strategy of
looking at manifestos and then finding out how it will affect them and their company. This way
2
