This website uses cookies to ensure you have the best experience. Learn more

The Impact Of Political, Legal And Social Factors On Two Businesses

1841 words - 8 pages

The Impact of Political, Legal and Social Factors on Two Businesses
All businesses in the world have to obey to the political, social and legal factors that are within the world. These factors can have both a negative and positive effect on the business. The businesses I will be concentrating on is Toys ‘R’ Us and National Health Service.
Toys ‘R’ Us
Political Factors
Political factors that affect businesses include new legislation such as the national minimum wage and setting tax rates such as VAT or Corporation Tax. Most business operators will keep a watchful eye on any political factor, such as new laws or regulatory shifts, which could have a substantial impact on how their company ...view middle of the document...

For instance, if the government decide to raise the Value-Added Tax (VAT), large businesses like Toys ‘R’ Us would have to lose profit and pay for the loss of profit or increase the prices of products to cover the loss but this can lead to the loss of customers. Political stability can also have an effect on Toys ‘R’ Us’ stakeholder, like the suppliers and customers, with higher VAT prices, the customers would probably decide to shop at Toys ‘R’ Us competitors. Suppliers will also ask for more money from Toys ‘R’ Us. However, Toys ‘R’Us wouldn’t be able to pay their suppliers which means they won’t have certain profits and this can result to the loss of more customers.
Another important political factor affecting business is in creation international links, particularly in relation to trading. For instance, Toys ‘R’ Us will ship UK products that are their own to China which is another country which they operate. This can result to the UK having the most Toys ‘R’ Us stores which will benefit largely in goods and money. This can also affect the stakeholders, such as suppliers. Suppliers will need to send their goods/products across the country to other place where Toys ‘R’ Us operates. However, this can mean that Toys ‘R’ Us may have to pay them extra in order for them to ship the products. If suppliers don’t go ahead with this trade network, other countries where Toys ‘R’Us operates will not receive the products which result to loss of customers.

Legal Factors
Legal factors relate to changes in law and regulations. All businesses must operate within the frame of the law. Failure to do so can lead to fines and even imprisonment of directors. Therefore, businesses give high priority to making sure they comply with law. There are a number of laws that affect businesses but the main three are: Company, Contract & Competition.
The legal factors that affect Toys ‘R’ Us activities are Company and Contract Law.
Company Law covers who can set up the business, the steps and the paperwork that is included in order for the business to be set up, and the reports that the business makes which involves how they present their accounts. The most important piece of legislation is the Company Act, covering a range of important matters such limited liability, business name and etc.
Toys ‘R’ Us shareholders have legal protection that limits how much a shareholder in a company can lose if by any chance the company becomes bankrupt. This means, in other words, the money the shareholder has put into the company would be the same amount of money he/she would lose if Toys ‘R’ Us becomes bankrupt.
Contract Law are the contracts that businesses make with employees, consumers, suppliers and so on. Within the contract law, there are two main types of contracts affecting the business – contracts with consumers and contracts with employees also known as Employment Law and Consumer Protection. Employment Law, which comprises a many of government laws, including...

Other Essays Like The Impact of Political, Legal and Social Factors on Two Businesses

The Impact Of Some Selected Factors In Cooperative Learning On The Improvement Of Academic Performance And Social Behavior Among Grade Five Students At A Primary School – THE THEORY

981 words - 4 pages development of more advanced ways of understanding and dealing with the world.In addition to achievement outcomes, researchers, as indicated in the review of literature, have also assessed the impact of cooperative learning on problem-solving. Given the complex nature of problem-solving and the multiple resources that a cooperative learning group has at its disposal, one would logically expect cooperative learning to have a positive effect on

The Social, Economic, Legal And Moral Effects Of ICT On Society

684 words - 3 pages The Social, Economic, Legal and Moral Effects of ICT on Society I will be looking in detail at all aspects and results of ICT on society on a whole. By doing this I hope to grasp and look in detail at the benefits and misgivings on what seems to have been a global change which has an impact as large as that since the birth of the telephone by Alexander Graham bell. Undoubtedly communications technology has

The Impact of Fraud on the Nonprofit and Social Services Sector

4356 words - 18 pages The Impact of Fraud on the Nonprofit and Social Services Sector Authored by Ron Matan, CPA And Darryl Neier, CFE, MS 2009 ABSTRACT This white paper sets forth a discussion on the breadth of fraud occurring in the nonprofit community and its over-all impact on the nonprofit sector and the community at large. The paper begins with a brief overview of the size and scope of the nonprofit sector. It then delves into the types of

An Analysis Of Impact Of External Environment Factors On Hainan International Ltd And Its Strategy Of Dealing With These Factors

2931 words - 12 pages BUSINESS FUNCTIONS CORP1904COURSEWORK ASSIGNMENTAn Analysis of Impact of External Environment Factors on Hainan International Ltd And Its Strategy Of Dealing With These FactorsCONFIDENTIALSummaryHainan International Ltd, as a class one contractor based in Tanzania and working in East Africa market actively, has been successfully since incorporated in 1998. Hainan is developing from a relatively small capital to a reputable contractor in Tanzania

Impact of Technology on Social Interaction

637 words - 3 pages The Impact of Technology Have you ever looked around and noticed that most people are not paying attention to what they are doing or whom they are talking too? With technology constantly changing it is becoming a major part of our lives and is having both a positive and negative impact on social interaction amongst people of all ages. Technology has changed dramatically and more and more people are relying on it to on a day to day basis

A Study Of The Political, Social And Cultural Influences On The Work Of Three Photographers, Lee Friedlander, Gary Winogrand And Nicholas Nixon

3937 words - 16 pages Paper Describing the social influences on modern photography Good ContentMarking the Times:A study of the political, social and cultural influences on the work of three photographers.Of all the influences on an artist, the effect of the period in which work isproduced is often the hardest to discern. The era in which an artist lives and worksbrings all of the social, political and cultural influences to bear and, while theeffects may be profound

Social Impact of Tourism on Dubai

1128 words - 5 pages Dubai enjoys an arid subtropical climate, with blue skies and sunshine all year round. The hottest months are between June and September whereas the coolest time is between December and March. There is very little rainfall in Dubai, but when showers do fall it is mainly in the cooler months.   Dubai, with an area of 3,885 square kilometers, is the second largest emirate in the United Arab Emirates (UAE). Situated on the banks of the Dubai

The Social, Environmental and Economic Impact of Tourism

2452 words - 10 pages in the long run. The Travel and Tourism industry is a highly sensitive industry. So, if the economy of that area is totally depends on tourism it will be very harmful not only for that area but country also. The Economic impact of Tourism Some positive impacts are: • Tourists contribute to sales, profits, tax revenues, and income in an area. • Creates more jobs • More locals will be employed = more money • Contributes to income and

Economic and Social Challenges in the United Kingdom and Their Impact on Business

3729 words - 15 pages threshold, being severely materially deprived, or living in a household with low work intensity are considered at risk of poverty or social exclusion. The rises of poverty among families in the United Kingdom have the ability to cause a negative impact on businesses in the future. In the United Kingdom, there is a trend that affects most families living in poverty. School life and education play an important role in determining a child’s future

Compare and Contrast Two Social Science Views About the Ordering of Social Life

1595 words - 7 pages Compare and contrast two social science views about the ordering of social life. The way in which individuals form and maintain social lives with others and with the things around them is founded by social ordering; a concept defined as a set of linked social structures, social institutions and social practices which conserve, maintain and enforce ways of relating and behaving (Wikipedia, accessed on 25th June 2014). This essay will compare

Social-Cultural And Economic Factors Affecting The Vulnerability Of Women To Hiv/Aids

1777 words - 8 pages KENYA METHODIST UNIVERSITY DEPARTMENT OF HEALTH SYSTEMS MANAGEMENT AND MEDICAL EDUCATION COURSE: BSC. HEALTH SYSTEMS MANAGEMENT UNIT: HCSI 225-HIV/AIDS * Cultural, social and economic factors that increase women’s vulnerability to HIV/AIDS. Introduction Women, especially in sub-Saharan Africa not only have the highest HIV-prevalence rates, compared to men, but also are greatly affected by the social and economic constraints that

Related Papers

Political, Legal And Social Factors Have An Impact On Business

2914 words - 12 pages . D2 - Evaluates How Future Changes In Economic, Political, Legal And Social Factors May Impact On The Strategy Of One Of The Businesses: Now I have mentioned the different types of Political, Legal and Social factors and how they would have an impact on Merthyr Tydfil Borough Council and JLR. I will now be explaining how future changes in the factors will have an impact on the business plans of JLR. Economic Factors: I feel that the economic

Describe How Political, Legal And Social Factors Impact On 2 Organisations And Their Stakeholders P6 Including M3

1038 words - 5 pages P6M3 How does political, legal and social factors impact business activities of selected organisations and their stakeholders Nike Political factors: Politics can both negatively and positively through changes made to tax, labor and national security laws. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing the company in the long run as people spend less money on goods and services

Focusing On Just Two External Environmental Areas From The Economic, Social, Political And Legal Environments, Analyse The Key Forces And Trends That Have Taken Place Within These Two Environmental...

781 words - 4 pages , distribution, communication as well as continuous attention to the changing needs of the customers, and the development of new products to meet these needs. The implication of this change is that an organization is inevitably influenced by, and has to react to what happens outside the business. There are several external environments that may impact an organization, including economic, social, political and legal factors. Organizations utilize

The Evolution And Impact Of Information Technology In Businesses

1273 words - 6 pages transport a piece of mail through the U.S. Postal Service and now you can email data or documents across the world instantaneously. Electronic mail also can also be passed through multiple receivers if there is more than two parties are involved. In addition the internet has eliminated space and time. Video or teleconferencing technology lets businesses on any part of the globe network with one another. Information technology also has reduced