D2-EVALUATE HOW FUTURE CHANGES IN ECONOMIC, POLITICAL, LEGAL AND SOCAL FACTORS MAY IMPACT ON THE STRATEGY OF A SPECIFIED ORGANISATION
It is vital to investigate the economic, political, legal and social factors of an organisation before making any future plans on it. The business that I have chosen is Asda. It provides goods and services that people require in their everyday life for an affordable price.
The economy of the UK has barely grown due to the recession which impacted on the demand for goods and services in UK. Inflation rate means increasing level of prices of goods and services. When the inflation rate rises, the government will raise interest rates to ...view middle of the document...
The government is planning to increase the tax on oil as it is a natural resource that is running out. Which means that Asda’s oil prices will increase resulting in less customers and less profit. Asda should stop buying and selling oil as it would ruin their reputation. Customers shop from Asda due to the cheap prices and if tax is increased, the reputation will be destroyed as well.
It is important for managers to consider factors such as tax changes, new laws, trade barriers and government policies as this is form where their perceived weaknesses and their competition which can impact the operations of Asda
The laws and constantly being changed and it is vital for Asda to be aware of it and be ready for these changes. Customers Law states that they are not meant to sell alcohol and cigarettes to under 18. If Asda wasn’t aware of this law, they would be fined £2500. Being unaware of the laws may cause more fines which will result in less profit for the company. They should train the employees about these laws and the consequences of it if it was not followed.
Asda makes sure that the employees’ security and personal details are secure and this is called employment protection. There is also a section where all of the access security questions must be answered with identical insurance. Only the employee can have access to their account and it is deleted once the use is finished.
To make things better, Asda must continue to invest in the renovation...