Unit 1 P6 Describe How Political, Legal and Social Factors Are Impacting Upon the Business Activities of the Selected Organisations and Their Stakeholders

Topics: Law, Coca-Cola, Business Pages: 5 (1344 words) Published: December 16, 2012
P6: This report describes the influence of political, legal and social factors on the activities of Coca-Cola Enterprises Ltd and Croydon Health Services NHS. The report also identifies how the aforementioned factors may affect its stakeholders. All businesses will be affected by factors in its environment. The following are the 3 main factors affecting businesses; 1.Social Factors

Social factors refer to the changes in the lifestyle, behavior, attitudes and tastes of different societies. Social factors may affect the two businesses in the following ways: •Demographics - Coca- Cola Enterprises Ltd

Change in the size and age of the population will affect the plans of Coca-Cola Enterprises Ltd. The size of a population will be determined by the birth and immigration rates of the society. If the rates are high, Coca-Cola Enterprises Ltd will face an increased demand for the supply of products and services. This may be an opportunity for the business to expand into a wider market. The shareholders of the company would experience an increase in their dividends if Coca-Cola Enterprises Ltd matches up to the change. •Changing Trends and Tastes- Coca- Cola Enterprises Ltd

Over time customers’ preferences may change. This could be caused by new trends in the market. For example, if customers suddenly started to buy sugar- free beverages from competitors, Coca- Cola Enterprises Ltd may launch a sugar free product to suit the tastes of its customers. The shareholders of Coca- Cola Enterprises may be dissatisfied by this change as the project would require a lot of funding some of it from their dividends. But the company would still take on the project or develop their current products. •Demographics- Croydon Health Services NHS.

The health care sector depends hugely on the demography of its patients. The patients are treated according to their age and sex. The 2000 Health Survey for England found that by 2050 elderly people will outnumber the number of children. An ageing populationwould implicate an increased demand for healthcare as the elderly make up the largest number of patients.An increased demand would lead to increased demand for funding. Therefore, the organisation may be forced to close a few of its branches which could lead to shortage of jobs in the health sector and poor quality of services. In addition if a retired population grows, the demand for nursing homesis expected to rise. This would be very costly for the health organisation to sustain. •Ethical Issues - Croydon Health Services NHS

It is vital for the health organisation to base their decisions on morality as they will have an effect on the society. The organisation should also carry out community work to build relationships with society. For example, the organisation’s wheelchair scheme sponsors disabled members of the community to acquire wheelchairs. The scheme reaches out to the community and meets the moral needs they want. The organisation’s patients would in turn support Croydon Health Services NHS as it would have met its responsibility on the community. 2.Legal factors

These refer to the legislations businesses must follow. The business must work within the law. The following are 2 legislations that may affect Coca- Cola Enterprises Ltd: •Consumer Protection Laws

Consumer protection laws ensure that businesses act fairly and lawfully to its customers.They are divided into different acts for example; Sales of Goods Act, Consumer Credit Act and so forth. The Sales of Goods Act would oblige Coca- Cola Enterprises Ltd to selling products as described and of good quality. For example, if the company is to supply 20 crates of beverages to a retailer, and supplies 19 ½ the business has broken the act and will be charged. Another example could be, if the company sold a drink to a customer that was insufficiently carbonated, the business would have also broken the Act as the drink was of poor quality. The Act will lead to high...

Bibliography: Books
1. Bevan et al ( 2010) BTEC National Business Level 3 Book 1, Pearson Education, UK
2. Wilmshurst , J and Mackay , A (2002)The Fundamentals and Practice of Marketing 4th Edition, Heinemann, UK
3. Hill ,N ( 1994) Marketing 2nd Edition ,Gower Publishing, Hampshire
4. Bryman, A. and Bell, E., Business Research Methods revised edition (Oxford University Press, (2007)
 http://www.commondreams.org/headlines05/1215-01.htm[viewed on 5-12-12]
 http://www.dineshbakshi.com/igcse-business-studies/external-environment/revision-notes/65-legal-environment-factors[viewed on 5-12-12]
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