ï»¿Describe how the political, social and legal factors affect the business activities of the organisations.
There are many aspects of life that affect a businessâ€™s way of running, from looking at the political, social, and legal aspects we will be able to see just how each any every subject matter differently and how that affects the business.
The social side of life refers to the changes in lifestyle, behaviour, attitudes and different tastes, the decisions that are made suggest that we take into account everything from our own personal morals and ethics to the demographic needs for our particular product. Demographics can affect the business because of the changing size and age of ...view middle of the document...
This can also be seen within the business of Gilberts as it is positioned in a place to bring in customers from the local area and that would suggest that they choose to not discriminate against people from different ethnicities.
The fact that every single person is in a position to be able to know what Cadburyâ€™s is means that those that want the products will be in demand for it but because socially a structural formation can change, this can be changed within household changes and the growth of families meaning that as needs change within a household the essentials become a smaller amount and the need for products is much smaller. However when you look at Gilberts, the products that they source arenâ€™t products that every consumer would be prepared to pay for because they may not necessarily know of the shop and family history, this means that the business in general is going to be affected by word of mouth and opinions from consumers who can pass on thoughts, feelings and recommendations to make the business liven up.
The fact that businesses all have an impacted shareholder that is the Government means that all decisions can impact the government in a positive or negative way, the first being that within business the political side comes from consumers, through to business and then comes out within the economy. The political factors are how and to what degree a government intervenes in the economy; political factors include areas such as taxes, human rights law, environmental law, trade restrictions and political stability. Political factors can include goods and services which the government wants to be provided, this can be applied to Cadburys as there could be a demand for goods that coincide with special events, for example, when the Olympics was in London there was a special manufactured set of confectionery. Gilberts is a small business so this means that there arenâ€™t going to be that many things that affect the political side as they donâ€™t have the resources and productions to be at the scale that Cadburys is.
Government can also provide support for businesses in the form of Grants and loans, these mean there is a sum of money paid to help a start-up company of to help certain people get to where they want to be with the ideas that they have. The support can come in a money form or it can be in the form of a mentor or someone that can be there to guide you through the difficult times and help you with all your business needs. Within this they can find alternative ways to help enhance skills of the population by looking at educating and training them to be able to do jobs and not let their social circumstance affect the way they live.
The legal aspect within the PESTLE analysis refers to all the laws directly connected to a business or company and its area of activity, including consumer law, health and safety law and Employment law. The legal side comes from the contract being between the company and consumers as well...