How Does The Government Affect Tesco

Ownership and liability - Tesco is a multinational grocery and general merchandise. Founded in the east end of London by Jack Cohen in 1919. Registered in the UK, operates in 14 countries across Asia, Europe, and North America. Also, a public limited company (plc). A plc is when shares are sold and traded on the stock exchange. Likewise, with it being a plc meaning they have limited liability meaning it protects the business against the risk of being sued so they are not held responsible. There are features that include that they buy and sell shares on the stock market meaning they have an increased capita since they issue shares and debentures.

Tesco are Britain’s biggest supermarket and due to this they employ thousands. The government can give Tesco grants and money to invest back into Tesco. The government will benefit because if Tesco invest the money wisely they will have a successful year therefore the government will receive more tax. An example of Tesco receiving a government grant was in 2009 when they received £5 million to open a new store in Glasgow.

There are two types of social factors that can affect a business; there is external affects and internal affects. Internal affects are about demographics and lifestyle whereas external is about social costs and benefits

go through cycles of expansion, recession and recovery. Monetary and fiscal policies can affect the timing and length of these cycles. In the expansion phase, the economy grows, businesses add jobs and consumer spending increases. At some point, known as

The fiscal policy affects Tesco due to an increase in income tax which will cause the all customers to do less spending and have their spending habits change. This will affects Tesco’s profits, stock and cause them to lose stores and job losses which will create bad morale. Tesco’s market share might decrease depending on the effects on the competitors. Also Tesco will do less investment due to less profit to be able to spend. An increase in VAT will affect Tesco they will gain less profits for the same amount of sales. Tesco will either have to increase their

A government policy that has effect the marks and spencer is the government policies to reduce the deficit and balancing the economy. This policy is seen to have effect marks and spencer’s in a good way because the government have lowered the tax rate for top earners allowing these top earners to have extra money to spend at marks and spencer because it is persevered to be that a high percentage of these employees are the top earners. This Policy has also had an effected marks and spencer because the government have launched the National Infrastructure plan which has impacted marks and spencer because it has meant that the government would now be spending a lot money on Infrastructure for stuff like transport which makes it much easier for potential customers to buy product from marks and spencer because it is easier to get to a marks and spencer and shop there

Political factors is an external environment in which a business functions. This is a type of external constraint for a business and are related to actions of governments. This factors can affect how the business operates. Political factors include politicians, who make important decisions. These can be done at national level at the UK

In times of fast progress, in terms of economic development and globalisation, many multinational companies are extending their business overseas. One of those many firms is Tesco. This report will elaborate more about how Tesco failed in America when it encountered cultural and economic differences.

Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are

Tesco is the largest retail business in the UK so they have many external and internal stakeholders; one external stakeholder of Tesco is the government. Its written law that everyone has to pay their taxes this law also includes organisations such Tesco, which is a law, passed down by the government. The tax in the UK is 20% that is used to enforce and improve aspects of society. The influence that the Government has on a business is that the government can bring in new laws that can affect the business such as raising the minimum wage or tax, and this would take a lot of money from the business profit, so business wouldn’t be able to maximize

The purpose of Tesco is to sell every day necessities to the whole population such as food, clothes, electric goods such as well as

An economic factor that might affect Tesco is the demand of the consumer and customer which will decrease with the different problems; people are having in the world. As the demand decrease so the economy of the business will decrease and the profit of the business will decrease too. This refers in the fiscal and monetary, for example since when the government decided to raise the VAT from 17.5% to 20%, the business increase their goods price and due to that reason the customers do not purchase enough goods like they used.

TESCO is top leading retailer in UK. It manages over a thousand supermarkets, hypermarkets, and convenience store in the United Kingdom, Ireland, central Europe, and Asia. TESCO started life in 1919 when Jack Cohen started surplus groceries from a stall in the East end of London. MR Cohen made profit of 1 from sales of 4 on his first day. TESCO brand first appear five years after in 1942 when he bought shipment of tea from a MR T. E Stockwell. From that time TESCO slowly improve in retail business and now they are take top position in UK retail business. Tesco aim is provide best products for their customer and make sure about customer requirements.

tesco can take advantage of its successful international expansion. tesco is in a position to share their know-how and also is able to apply technologies and know-how which will create a competitive edge over its rivals and also step its learning curve.

Tesco had achieved measurable success in the UK market which was highly regulated and competitive. Due to regulatory pressures, Tesco focused on its operations and capital investment within UK, which also led to opportunities in the international markets as they were a profitable business.