Evaluate how future economic, political, legal and social...

D2 Evaluate how future economic, political, legal and social factors impact the strategy of an organisation Economic Factors Economic factors have always been a concern for businesses like Tesco’s this is because the economy is continuously changing. In 2008 we experienced a worldwide recession which affected every business after the stock market collapsed. Tesco’s were also affected by the recession which resulted in their profits decreasing however they did find a way to benefit from the lack of flow of cash in the economy they did this by changes the prices of their products to match the state of the economy to continue to generate sales. Tesco’s is a high risk company to the recession and credit crunch, we can see this because†¦show more content†¦Tax increase is also a problem for business such as Tesco’s and Spar because they would have to pay more tax which means they will lose money therefore lowering their profits. Another concern for these business is the Vat rise which has risen from 15% to 20% which has made prices higher which means that Tesco’s will have to pay more to their suppliers which results in Tesco’s selling their products for a higher price in order to stop their profit from falling. Fuel price rises are also another concern because Tesco’s use fuel for things such as home deliveries and suppliers with fuel prices rising it is going to make these deliveries more costly which will either result in stopping certain services or rising prices which will have a negative effect on Tesco’s customers because they will either have to pay more for the service or not receive it at all. Legal Factors Legal factors are also important with the running of a business like Tesco’s or Spar, these business need to ensure that they working within the laws enforced by the government and are up to date on any changes in the regulations, for example is the European Union became more strict on importing goods this could mean that certain products that Tesco import could be declined because they don’t fit the regulations anymore and if Tesco’s were found importing these goods after thisShow MoreRelatedEvaluate How Future Changes in Economic, Political, Legal and Social Factors May Impact on the Strategy of a Chosen Organisation997 Words   |  4 PagesEvaluate how future changes in economic, political, legal and social factors may impact on the strategy of a chosen organisation Changes in a number of different factors can affect the way in which the business is run in the future and this could mean that the business has to look into different ways of tackling problems, which would mean they have to forecast what they believe the future is going to be like. Tesco as an organisation is constantly expanding because of the amount of people who needRead MoreDescribe the Influence of Two Contrasting Economic Environments on Business Activities Within a Selected Organisation1721 Words   |  7 PagesP5-Describe the influence of two contrasting economic environments on business activities within a selected organisation Within my selected organisation, Tesco, there are 2 important economic environments that have an influence on business activities. Both economic environments will have a different way on affecting Tesco. The economic environments are growth and recession. Economic growth occurs when more goods are being produced and consumed, and incomes are rising. 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After which, the importance of stakeholder analysis will be clarified and an analysis of different strategies involving substantive growth, limited growth or retrenchment will be completed. A future strategy for Merlin Entertainments PLC will be carefully chosen and the roles and responsibilities for applying the strategy will be carried, together with an evaluationRead MorePolitical And Legal Environment Overview Essay1413 Words   |  6 PagesPolitical/Legal Factors 5.1 Political Legal Environment Overview Holburne and Zelna (2010) describe the legal political environment as an arena where organisations interact with a body of laws and regulations, guiding interactions between nations, firms and various local government agencies. The political and legal environment in the home country, the environment in the host country, and the laws of agreements governing relationships among nations are all important to the international marketer