Political Factors Essay

The government is also a stakeholder as it is interested in the success of Tesco Plc as all businesses have to pay taxes, so the more profit they business turns in the more taxes is has to pay, if the business fails then workers are make unemployed and as a result may go and ask for government unemployment benefits such as Jobseekers Allowance.

It is therefore becomes important for TESCO to indentify or so a business analysis whether there is any regulation and policy that may curtail the business activities. So, while doing the business TESCO has to consider the all policies imposed by EU,. If that is done TESCO could face under the common law of violating the agreement of EU member countries. Because TESCO PLC is currently operating in different EU countries the company has to abide by these regulations. But still UK being member of EU, TESCO is getting more business in its are than other organizations operating in the

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.

The scale of Business that Tesco would be is international as they are in a small amount of other countries other than Great Britain. On the other hand Dartford Borough Council is local because it only supply’s/helps one area in which it is found in.

Tesco is the Public Limited Company I will explore. To understand the size of Tesco, it has stores in 12 countries across Asia and Europe. There is a sum of 3739 Tesco stores within the UK (as of 2017). They also have 460,000 Colleagues at the end of 2016. This shows the size of Tesco and gets us to understand the effect that Tesco has on the UK’s economy and needs and goods of UK’s communities.

e.g.: If person A has political power over B, then A is able to motivate, inspire, incite,

Direct taxation includes income tax, national insurance and corporation tax. Income tax and National Insurance (NI) are similarly affecting the consumer and operate exactly the same giving the same economic effects. Income tax and NI are the two biggest source of tax revenue for the govt, changes to either of these directly relate to disposable income, which in effect changes consumer demand. Consumer demand is a major factor for Tesco as a business as and an increase would mean more sales and a higher income, a decrease would lead to lower sales and lower income for Tesco’s. A lesser income would mean smaller profits which in turn might mean lower investment and employment levels.

Tesco is the biggest private sector employers and market leader in the UK supermarket sector.

If there was an increase in income taxes on poorer people they will have a lower personal disposal income and will have changed their buying habits from brands to Tesco Value or go to cheaper competitors. If income tax would increase on the rich, it wouldn’t affect Tesco as much as they probably go to higher end supermarkets such as Waitrose and will have buying changing habits with high end products such as Supercars’ and Rolex’s. Tesco has recently decreased their prices on thousands of branded products to increase sales, profits and try to gain their market share back as quickly as possible. Also to avoid the incident that occurred in 2013.

Tesco is a PLC which means it’s a public limited company therefore has limited liability. Limited liability is when only the money you invest is at risk and not your personal possession. Tesco is a British and Irish multinational grocery and general merchandise retailer and owns 27.8% of the market share in the United Kingdom. It has 6809 stores over 12 countries across Asia and Europe and it is a large company as it currently employs over 476,000 people worldwide. Tesco was founded in 1919 by Jack Cohen as a group of market stalls and on his first day he made a profit of £1 on sales of £4. The name Tesco came from

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

     Upon entering my first semester at Southern Nazarene University I could not have told you my political ideology. I knew what my opinions, observations, expectations, and ideals were, but did not know the proper ideology that would define them. Through several courses that I have taken, I have become more informed as to the role that I would like to see the government take throughout society as a whole and in the economy. Upon reading the section of ideology in American Government and Politics Today: the Essentials I learned that the correct term for my ideology is right-wing Conservatism. I would like to see the government take action if necessary in the economy, yet let

As a business Tesco needs to be aware of the social markets around them as and when they arise. For instance in August leading up to the new school year in September they will have school uniforms, stationary and other school equipment in stock. If they didn’t then parents may choose to do other shopping such as groceries in competitors stores who do provide such merchandise or who are closer to specialist retailers to save on multiple trips. This could impact on the businesses profits, especially if the store was in an area which had a high, school age population.

Tesco also have social factors that affect them, as the business have charity centre in helping the less privilege people and the more these people gets poor, the more they will have to stretch to help out which also spending money.

Since acquiring number one ranking in 1996, Tesco has developed a successful multiformat strategy that has accelerated its advantage. Its UK sales are now 71% larger than Sainsbury’s. Also the Competition Commission’s report makes it very difficult for a competitor to challenge its scale and has effectively scuppered Wal-Mart’s chances of stealing UK leadership. Therefore, Tesco is in an enormously strong position in its domestic market.