P6- Describe how political, legal and social factors are impacting upon the business
activities of 2 of the selected organisation you looked at previously and their stakeholders.
(2 organisation)
In this assignment, I will be talking about PESTLE and what impact it has on businesses.
PESTLE stands for, Political, Environmental, Social, Technological, Legal and Environment.
Pestle analysis help business to review their economic environment, and its used by
marketers to analyse and monitor the macro environment factors that impact an
organisation. The 2 business’s I will be talking about and how they do Pestle analysis is, Tesco
and Macmillan.
Tesco and Macmillan
Political
Political Factors may determine the extent to which the Government may influence the
economy. There are many ways that governments already have influences to the economy
as well as many business’s. Some of these political factors are:
Changes in government – Government have impact on many businesses as, their procedure
is to play fairly to the organisation, and this is as they pass down different policies and
regulations Which Tesco and Macmillan need to abide by. For example of a policy they
invented is that, big supermarkets/stores such as Tesco now charge for their bags. 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. Government policy also
affects Macmillan as, Macmillan as a charity has to be a registered organisation as they are
one of the biggest charities in the UK. Therefore, if they weren’t registered they would be
fined by the government for not abiding by their registration policy.
Taxes- Tax will hugely affect Tesco as a business, as they must pay tax on any money they
receive through profit. Politicians may agree to increase the tax rate, meaning that Tesco
must pay more tax monthly. For example, the tax rate in the UK used to be 17.5% up until
January 2011 when it was raised to 20%. An as a stakeholder it will affect all Tesco
customers. This is as; they must pay 20% VAT for all the goods and services they buy. The
added vat (20%) goes towards the government and to the EU. As Macmillan is a charity
(non-profitable organisation) they do not need to pay taxes. Charities such as Macmillan
don’t pay tax on most types of income if they use the money for charitable purposes. You
can claim back tax that’s been deducted, e.g. on bank interest and donations (this is known
as Gift Aid). However, if they spend their income on non-charitable purposes, then they are
obliged to pay tax.
https://www.gov.uk/vat-rates
https://www.gov.uk/charities-and-tax/overview
activities of 2 of the selected organisation you looked at previously and their stakeholders.
(2 organisation)
In this assignment, I will be talking about PESTLE and what impact it has on businesses.
PESTLE stands for, Political, Environmental, Social, Technological, Legal and Environment.
Pestle analysis help business to review their economic environment, and its used by
marketers to analyse and monitor the macro environment factors that impact an
organisation. The 2 business’s I will be talking about and how they do Pestle analysis is, Tesco
and Macmillan.
Tesco and Macmillan
Political
Political Factors may determine the extent to which the Government may influence the
economy. There are many ways that governments already have influences to the economy
as well as many business’s. Some of these political factors are:
Changes in government – Government have impact on many businesses as, their procedure
is to play fairly to the organisation, and this is as they pass down different policies and
regulations Which Tesco and Macmillan need to abide by. For example of a policy they
invented is that, big supermarkets/stores such as Tesco now charge for their bags. 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. Government policy also
affects Macmillan as, Macmillan as a charity has to be a registered organisation as they are
one of the biggest charities in the UK. Therefore, if they weren’t registered they would be
fined by the government for not abiding by their registration policy.
Taxes- Tax will hugely affect Tesco as a business, as they must pay tax on any money they
receive through profit. Politicians may agree to increase the tax rate, meaning that Tesco
must pay more tax monthly. For example, the tax rate in the UK used to be 17.5% up until
January 2011 when it was raised to 20%. An as a stakeholder it will affect all Tesco
customers. This is as; they must pay 20% VAT for all the goods and services they buy. The
added vat (20%) goes towards the government and to the EU. As Macmillan is a charity
(non-profitable organisation) they do not need to pay taxes. Charities such as Macmillan
don’t pay tax on most types of income if they use the money for charitable purposes. You
can claim back tax that’s been deducted, e.g. on bank interest and donations (this is known
as Gift Aid). However, if they spend their income on non-charitable purposes, then they are
obliged to pay tax.
https://www.gov.uk/vat-rates
https://www.gov.uk/charities-and-tax/overview
