Factors Affecting Businesses: Identify the legal, political, and social factors that can impact businesses.

Lesson 7/33 | Study Time: Min

Course: Level 3 Diploma in Business and Management

Factors Affecting Businesses: Identify the legal, political, and social factors that can impact businesses.

Did you know that businesses don't operate in a vacuum? 🌐

They are part of a larger system known as the business environment, which includes a variety of external factors that can significantly impact their operations. Let's delve into these factors.

Political Factors 🏛️

Political factors are all about how and to what degree a government intervenes in the economy or a certain industry. This can include government policy, political stability or instability, corruption, foreign trade policy, tax policy, labor law, environmental law, and trade restrictions.

A change in government often brings changes in policy. If a new government is elected and they decide to increase taxes for businesses, this would be a political factor that could significantly impact a business's bottom line.

Legal Factors ⚖️

Legal factors are related to the laws and regulations with which businesses must comply. These can include employment laws, health and safety regulations, consumer protection laws, and competition laws.

If a business fails to comply with health and safety regulations, it could face hefty fines or even be forced to cease operations. Therefore, it's crucial for businesses to understand and adhere to all relevant laws and regulations.

Social Factors 🌍

Social factors refer to the attitudes, beliefs, opinions, and behaviors of people in the society where the business operates. These can include consumer attitudes towards a product or service, changing lifestyle trends, population growth rate, age distribution, career attitudes, and health consciousness.

A business selling meat products would need to be aware of increasing vegetarianism and veganism in society. They might need to adapt their product range to cater to changing consumer preferences.

In conclusion, understanding these factors is crucial for businesses to thrive and succeed. It allows them to anticipate potential challenges and seize opportunities, ultimately giving them a competitive edge.

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Class Sessions

1- Introduction 2- Types of Businesses and Ownership: Understand the different types of businesses and their ownership structures. 3- Stakeholders: Identify the various stakeholders that influence the purpose of organizations. 4- Organizational Structure: Understand how businesses are organized. 5- Business Targets: Describe the different types of targets that businesses aim to achieve. 6- Achieving Business Targets: Identify the strategies and methods businesses can use to achieve their targets. 7- Factors Affecting Businesses: Identify the legal, political, and social factors that can impact businesses. 8- Impact of Political, Legal, and Social Factors: Describe how political, legal, and social factors can affect businesses. 9- Introduction 10- Human resource management: Understanding the process of selecting employees and the importance of employability and personal and communication skills. 11- Managing physical and technological resources: Recognizing the importance of physical and technological resources in employee selection. 12- Accessing different sources of finance: Identifying various sources of finance available for organizations. 13- Understanding financial statements:Understanding the importance of financial statements in evaluating the financial health of an organization. 14- Introduction 15- Importance of marketing in an organisation: Understand the significance of marketing in a business and how it contributes to its success. 16- Marketing research and planning: Learn about the process of conducting marketing research and using it to develop an effective marketing plan. 17- Targeting customer groups: Understand the concept of targeting specific customer groups and the reasons behind it. 18- Developing a coherent marketing mix: Learn how to create a well-rounded marketing mix for a new product or service. 19- Introduction 20- Human resources planning in organisations: Understanding the factors involved in planning for human resources in an organisation. 21- Employee motivation in organisations: Understanding how organisations motivate their employees. 22- Employee performance management: Understanding how organisations manage and measure employee performance. 23- Employee cooperation in organisations: Understanding how organisations gain cooperation from their employees. 24- Introduction 25- Types of Business Information: Understanding how organizations use different types of business information to fulfill their purpose. 26- Effective Presentation of Business Information: Knowing how to present business information effectively. 27- Limitations of Business Information: Understanding the limitations in relation to the use of business information in an organization. 28- Communication Methods for Business Information: Knowing how to communicate business information using appropriate methods. 29- Introduction 30- Health and safety legislation and regulations: Understand how health and safety legislation and regulations affect a business working environment. 31- Requirements for a healthy and safe workplace: Know the requirements for healthy, safe productive working conditions. 32- Role and responsibilities of key personnel: Understand the role and responsibilities of key personnel in ensuring health and safety in the workplace. 33- Risk assessment: Be able to assess and manage risk.

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