Political, Social & Legal FactorsTask 1 (P6) China and the UK have different economic systems but the business activities in both countries are influenced by political, legal and social factors. Tesco must be aware of these factors in both countries and have plans to ensure they do not negatively impact the business. The external factors that affect Tesco’s business activities in the UK and China include political, legal, and social factors. Political factors refer to government policies and decisions.
These decisions will have an impact on the activities of Tesco in the UK. The government of the UK undergoes changes every 5 years, which can affect business activities due to distinct views and priorities among political parties. Currently, the UK government is a coalition between the Conservatives and the Liberal Democrats, leading to difficulties in reaching policy agreements at times due to differing opinions.
Political stability is vital for establishing trust in businesses and stakeholders, irrespective of their scale. Tesco, as a member of the European Union (EU), is not only influenced by any modifications to EU legislation in the United Kingdom but also in other European nations. Though changes in EU governmental policies may not directly affect China, there might be indirect repercussions like decreased grants for EU firms that could have been utilized for expansion into markets such as China. Furthermore, Tesco must comply with the Environmental Regulations mandated by the UK government.
These regulations establish criteria for companies to decrease pollution of the air, water, and land, as well as carbon emissions…
