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Political, Legal and Social Factors Have an Impact on Business

In: Business and Management

Submitted By rachel1978
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Political, Legal and Social Factors Have an Impact on Business

Political Factors:

Political Stability: This is where a general election happens across the nation and one party is elected to run in government and last up to 5 years they are Liberal democrats, labour or conservatives. Each party produce a manifesto to say what they would like to change when they are in power if they get voted in.

This help organisation such as Merthyr Tydfil Borough Council and JLR plan for the future with the change that may be made for example if they plan to cut government spending, then JLR and Merthyr Tydfil Borough Council need to find alternative method to fund the expansion of JLR. Or for Merthyr Tydfil Borough Council if cuts are being made they may not be able to make certain changes may not be able to make them originally.

Taxation: These are taxes which are controlled by the national government Labour, Liberal Democrats or Conservatives a good example of this would be income taxes. Local government would be business rates. Taxes are useful for the government as it help them create revenue so they can spend it on the NHS and School for example.

If taxes were decrease it would have impact on all organisation, such as Merthyr Tydfil Borough Council would be that as people are putting less into them they are not going to be able to fund certain projected that they planned to do when taxes were high. The impact it would have on JLR would be that, as taxes are doing, the is less money that the government are going to give JLR compared to when taxes high when they had more disposal income to give JLR to help fund expansions and creation such as the C02 free engine.

Legal Factors: The impact on JLR in the future depends on whoever is in power as the government’s manifesto changes whether they are right or left wing. This will affect JLR, depending on what the…...

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