The Business Environment Essay
P6- describe how political, legal and interpersonal factors will be impacting upon the business actions of the selected organisation and their stakeholders PEST- Political elements include government policies relating to the sector, tax plans, laws and regulations, trade restrictions and tariffs etc . The financial factors relate to changes in the larger economy including economic growth, interest rates, exchange rates and inflation level, etc . Cultural factors typically look at the ethnical aspects including health awareness, population progress rate, age group distribution, within tastes and purchasing patterns, etc . The technological factors connect with the application of new inventions and ideas just like R&D activity, automation, technology incentives plus the rate of technological transform. PEST in the united kingdom As this kind of rate pertains to most goods and services.
This would influence Tesco as their suppliers must increase the prices for their merchandise. Which means Petrol station have to pay more income for items they buy from their suppliers. This would affect Tesco customers as they have to pay more money for the goods and services they get from Petrol station. Tesco include to pay all their VAT in time even if all their customer have not paid but as they include purchased goods from Tesco on their mastercard, this can cause Tesco to obtain cash-flow problems and having overdraft costs.
Growth in Obesity- while the number of persons becoming obese is increasing this would affect Tesco because of the readymade dishes. When Tesco’s customers acquire their readymade meals that did not demonstrate percentage of calories, sodium or body fat was in them this would impact Tesco his or her customers would complain or sue them this would as well make people more obese as Tesco’s clients did not recognize how much to consume in a day. However the government introduced the targeted traffic light and Tesco had to use the traffic light on their readymade meals, which revealed their customers if their readymade meal is actually a healthy decision as it confirmed the percentage of salt, at and calories from fat.
Online Shopping- another way technology has impact Tesco through online shopping. Which can be very hassle-free for Tesco’s customers who have are too active and hardly have any kind of free time. Even so online shopping can easily have adverse affect upon Tesco, because their customer may possibly believe it is therefore convenient and rely on this kind of.
Also Sainsbury have presented click and collect which means their customers can easily order their particular shopping online and collect their particular shopping via a store near by or get free delivery. This kind of also link too cultural as this could make Tesco’s customer even more lazy and possess health problems and lead to carrying excess fat.