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The Impact of Political, Legal and Social Factors on Two Businesses

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The Impact of Political, Legal and Social Factors on Two Businesses
All businesses in the world have to obey to the political, social and legal factors that are within the world. These factors can have both a negative and positive effect on the business. The businesses I will be concentrating on is Toys ‘R’ Us and National Health Service.
Toys ‘R’ Us
Political Factors
Political factors that affect businesses include new legislation such as the national minimum wage and setting tax rates such as VAT or Corporation Tax. Most business operators will keep a watchful eye on any political factor, such as new laws or regulatory shifts, which could have a substantial impact on how their company operates. Politics can affect a business in many different ways. For example grants, taxation and support. All these can change the outcomes of the business. They can affect profit, customers and revenues.
Taxation can affect every business in the world including Toys ‘R’ Us. Taxes are collected by national government and local government. Taxation helps the government ti raise revenue and also enables it to discourage various activities and to encourage others. This can include many things such as: cigarettes to discourage smoking or high fuel composition cars to discourage pollution. In March of every year, the government release information about the changes of taxation. Toys ‘R’ Us have to discuss if they are going to make their products more expensive in order to cover lost profit. If not, this can result to them losing their customers and if this continues, the consumers may decide to shop with Tesco’s competitors.
Political stability is when a political party is elected to be the next prime minister. One elected, they would start to put their plans in action. These plans are made public so businesses such as Toys ‘R’ Us can use this information provided to prepare for

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