P6 M2 Essay

3243 Words Dec 16th, 2013 13 Pages
P6: Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders
M3: Analyse how political, legal and social factors have impacted on the two contrasting organisations

Political Factors
Political Stability
Political stability is crucial for Waitrose for many reasons. One of the reasons for this is because if the Government is stable it means there is a greater certainty and assurance within the business therefore allowing the business to make decisions without worrying that the business could go terribly wrong because of the government. Another reason why Waitrose like political stability is because it gives Waitrose a stable platform at which they
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Waitrose will try and buy as many products fair-trade not just because it will be cheaper because of the reduced tax but because it also makes the company look better because they are helping the workers in places like Africa and the Caribbean.
The NHS is affected highly by taxation and levels of taxation because the main funding is from the ‘public purse’ so if the government put the tax levels down it means the government gains less money which they can use to fund the NHS. Also there are many medicines that are tax free so it is cheaper, if the government decided not to let the medicines be tax free then the NHS would have big problems because they would have to use a large part of their funding on the tax for the medicines they pay for. Also if the pharmaceutical companies put up their prices on the drugs they sell then they would be unable to afford as many high quality facilities because of the price they have to pay for the medicine.
To adapt to the types and levels of taxation they can create great relationships with pharmaceutical companies so they get better prices and make sure the government keep their no tax policy on certain parts of the NHS.
If Waitrose had to pay higher tax because the government increased the level of tax then profit margins reduce, then quality of products on offer may reduce as a result of this because the business may not be able to buy as good a product because they have less money to spend on the products due to the increase

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