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