Know how political, legal and social factors impact a business

Political:

Political factors can have huge implications on a business. This can depend on how stable or instable the degree of policy and government is within the country. For example, a change in government can lead to instability as this would cause uncertainties within the government. The current coalition government would be considered stable in its current position. However some of the policies that the current government are trying to push through, e.g. leaving the EU, would cause big instabilities and could have negative effects on businesses including cross street news and glow warm. This is because if we left the EU it would become more difficult for us to trade as many countries wouldn’t want to do business with us. If this was the case both glow warm and cross street news may find it difficult to find a low costing supplier outside the UK. This would cause both businesses to raise prices in order to cover the new costs. An advantage of having a stable government is the support that they can give to a business. This support can come in the form of many different grants and initiatives to suit any stage of business development. One example of a grant that is back by the government would be green grant.

http://www.smallbusiness.co.uk/financing-a-business/government-grants/1654608/the-green-grant.thtml

With a green grant, the government gives a business a sum of money if they are considered to be environmentally friendly and are deemed by the government to be making a positive environmental change. This type of government grant would apply to glow warm as part of their business involves the insulation and maintained of solar panels and other forms of renewable energies. A further type of government grant that is availab...

... middle of paper ...

...a high quality one. An example of this is if you go into a shop and look at a watch and decide you want to order one. If the product then came and it was a fake and very poor quality, the business who sold it to you would be guilty of breaching this law. A further example would be if a store has a product out on display that you can use and try, but when you buy one and take it out of the box it is a much poorer quality. This is again a breach of the sales of goods act. This law would affect cross street and glow warm in a similar way to the trades descriptions act in that the customer has to be told exactly what it is they are getting and the capabilities of it. Cross street news could break this law if they use poor quality products when they are carrying out a job for a customer. An additional law that is in place to protect customers is the competition act.