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Unit 1 Business environment m3

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Analyse how Political, Legal and Social factors have impacted on the two contrasting organisations

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Damini Dhiman 259477


M3: unit 1
Explain how your selected organisations have adapted
their activities to suit different environments.

Political:
The stability of the government is a huge factor as if they are not
stable this means it will be changing quite frequently an the massive
effect will affect Tesco and NHS. For example, if the VAT has been
raised by the government then they would have to make a new law as
well as Tesco having to increase their prices, which means more
profit for the employees, suppliers, producers and government.
However, it is a loss for the customers as they are paying more. With
the NHS, having a VAT increase means more facilities and wages for
the employees. Moreover, having more facilities helps the NHS to
help patients much quicker and efficiently. So, to continue making
profit Tesco could cut staff meaning less workers will need to be paid.
Many people will start producing the products in different countries
and bring them here then sell them for a cheaper price so it is a win-
win. This means more people will be looking for jobs. By doing this, it
means they can make more profit and if the profit continues to
increase some businesses will decide to sell their shares.

Legal:
It is ideal that their health and safety is taken first before all aspects.
If Tesco does not provide their staff with health and safety
procedures and support they could afford a loss and if something
happens they would have to pay compensation. This is also applied to
the NHS and its staff. All the legal factors will affect the way the
business operates and how it runs. Moreover, the laws will vary if the
business is located in different countries. An example of a legal factor
is the consumer protection law, which is an act that ensures
businesses follow legislations to follow the rights of consumers. The
act consists of organic, fair trade and less food miles etc. this is an act
both the NHS and Tesco will have to take in order as the NHS also
need to beware of the food they provide the patients with.

Social:
The social elements are also important as they can be
affected by education. Having more people in education
grows the amount of people looking for jobs and going to

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