The business activities of Wal-Mart and Tfl Essay Example for Free

The condescension dressivities of Wal-Mart and Tfl EssayFor this assignment, I go away be describing how semipolitical, legal and hearty f deed of conveyanceors be imp movementing upon the traffic activities of Wal-Mart and Tfl. For subscriber linees, this is weighty because they need to know how these transmit such as political finiss made by the establishment or changes to the rectitude or changes that express place in ordination over time is personnel casualty to alter their business.Political FactorsPolitical operators is an outside environment in which a business functions. This is a type of external constraint for a business and are related to actions of organizations. This factors privy affect how the business operates. Political factors include politicians, who make classical decisions. These trick be d unity at national level at the UK parliament. This is because the UK is a representative democracy, who has a process of parliament that are elect ed. There are political parties who with the most Members of Parliament run the country. This party is conduct by the Prime Minister who appoints the Cabinet of Ministers in charge of call areas of the government. Political stability is the military posture and integrity of a current government regime. This is de nameined based on the amount of violence and terrorism expressed in the nation and by citizens associated with the state. A stable ships company is one that is satisfied with the feeling party and system of operations and is not interested in revolutionary or despotic ideas.For businesses, they abominate instability. Businesses operates according to forecasts and scenarios somewhat the future so instability is not what they insufficiency. Political stability is important for Wal-Mart because the society is satisfied so that this provides a platform for Wal-Mart to sell their costlys. moreover if the is political instability in the UK, it affects the decision makin g process and their gelt. This is because the confidence in the economy exit go down and customers allow be less(prenominal) likely to sp depot. For Tfl, political stability is important because as the organisation budget is paid by the government, if on that point is instability the specie flow will get disrupted. in any case when political instability happens on that point is usually conflict and as Tfl provides a transport service, there could be damage. thus far in the UK there is a stable political system, so this is the environment for the business to growand distend. An another(prenominal) political factors which affect a business is the fiscal insurance of the business. Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nations economy.It is the sister strategy to monetary policy through which a central bank influences a nations money hang on. These two policies are used in various combinations to d irect a countrys economic goals. Fiscal policy seduces by increasing or decreasing tax levels and public spending to maintain the health of the economy. Fiscal policy affects Wal-Mart because by changing the amount of disposable income people incur to spend. This poop affect the consumer demand. This happens by luxuriously taxes. If taxes are higher than customers will have less money to spend and this will affect the profits of Wal-Mart as less people have money to spend. For Tfl, the fiscal policy will affect the business because as Tfl is a publicly funded, if there is a cut in taxes this will contract to less money for the government. To oddment the books, the government will have to cut spending. This directly affects Tfl because their budget will be cut. Another political factor which affects a business is the membership of international trading organisations. For the UK, they are part of the EU or European Union. The European Union, or EU, is known formally as the Eur opean Economic and Monetary Union.It establishes a common market among its 28 member countries. This means that all border controls between members have been eliminated, allowing the let loose flow of dear(p)s and people. The EU common market in addition means that any product legally fabricate in one member state can be sold in any other member, without tariffs or duties. Taxes have been standardized. Practitioners of most services can operate in all member countries. The price of airfares, the internet and phone calls have fallen dramatically. By cosmos the EU it affects Wal-Mart because as Wal-Mart is an international follow it is easier to operate in the EU because the regulations are same and taxes are similar. Also the EU sets regional policies, so if a country in the EU is struggling and need help the EU will help. This affects Wal-Mart because their investment funds will be safer because the EU will not let the country collapse. For Tfl, being in the EU helps because as Tfl provides a transport service it needs to import the goods to improve the infrastructure of the London and being in the EU it is easier and with less paperwork to get the goods.Another political factor whichaffects a business is the enhancing of the skills of the works universe. This means the knowledge of the youngster of the UK, the training of the working cosmos and research. The government can affect this by the spending it does on the education system and apprenticeships. This affects Wal-Mart because as the UK economy recovery there is an append in the demand of skilled doers. Wal-Mart needs skill workers for the finance, Management and etc. so with the skilled workers the business can expand. For Tfl, it needs skilled worker because as Tfl provides a transport service it needs engineers how there is a shortage as 88% of employers report not being able to find qualified engineers. Also as Tfl is a publicly funded organisation is has a set budget for employees so the business is at a disadvantage because it cannot pay the same as private businesses. So this is why the enhancing of skilled workers is important for businesses.Finally, another political factor which affects businesses is the government support for different types of organisations. For private businesses, the government gives tax course credit to businesses for employing more people or expanding their business. This affects Wal-Mart because this provides a goal because if the grow they will get awarded. Also if Wal-Mart expand they will get bigger profits and with the tax credit, it is easier to grow. For publicly owned companies, the government supports them by compensable for part of their budget and the public businesses dont pay taxes. This affects Tfl because the society doesnt have to rile about taxes cutting into their profits and as the government pay for their budget, there is less worry about paying for everything. So these are five political factors which affect Wal- Mart and Tfl.Legal FactorsLegal factors are things and rightfulnesss that the government or higher authorities pass that would have an effect on how business are run. Businesses must operate within the good example of the righteousness. However if the business fails to follow the law then it can lead to fines and change surface imprisonment of directors. Therefore, businesses give high priority to make sure they comply with the law. There are three main types of laws business follow Company law Tow businesses are set up and runContract law The contract that businesses make with employees, consumers,suppliers and so on Competition law How businesses go on with employees, consumers, suppliers, and so on, and how businesses are allowed to compete with severally other.Company lawCompany law is providing a framework for businesses. Company law is the field of law concerning companies and other business organizations. This includes corporations, partnerships and other associatio ns which usually carry on some form of economic or charitable activity. One example of a company law is the Companies Act 2006. This is an Act which was passed by the Parliament of the UK. The act provides a rule book for the companies in the UK. This act is an improvement on the Companies Act 1985 because it now it is To enhance shareholder engagement and a long term investment culture To ensure better regulation and a Think Small First burn up To make it easier to set up and run a company andTo provide flexibility for the futureThe key parts of the act isThe Act codifies certain existingcommon lawprinciples, such as those relating todirectors duties. It implements theEuropean UnionsTakeoverand Transparency ObligationsDirectives. It introduces various new provisions forprivateandpublic companies. It applies a single company law regime across the United Kingdom, replacing the two separate (if identical) systems for Great Britain and Northern Ireland. It differently amends or resta tes almost all of the Companies Act 1985 to varying degrees.2 This affects Wal-Mart because as Wal-Mart has a board of directors, this act states that there must be one person as a director and there cannot be one sole director and the borderline age of the director must be 16 days old.This affects Wal-Mart because it needs to employ more individuals to help run the business and this will affect the profits of the business. For Tfl, this act affects the business because as a part states that accounts must be submitted within 9 months of the year end and this is a change from within 10 months. This affects Tfl because now it needs to spend money reorganising the structure of the business so that it can submitthe account on time. Furthermore, a failure to do some will lead to a fine.Contract lawContract law is the protection of consumers and employees. This is a body of law that governs verbal or written agreements relating to exchanges of goods and services, money, and properties. Businesses form contract with many different individual, groups and bodies outside the business. This includeLendersEmployeesConsumersSuppliers of ripSuppliers of equipmentSellers of land and buildingFor contract law there is two main types. These are contracts with consumers, and contract with employees. However I will be doing contracts with employees. The legislation I will discuss is employment law. Employment law is the legal relationship between the worker and employer. A key component of employment law is the grounding of a contract. A contract of employment should include details such as names of employer and employee, think over title and job description, date employment starts, the place of work, the address of the employer, amount of pay and how it will be paid, hours of work, holiday pay entitlement and notice period requisite. The contract is legally binding and if the employer or employee breaks the law they can get sued.This affects Wal-Mart because a part of empl oyment law is the minimum wage, which is currently at 6.50 per hour for workers immemorial 21+. This is the lowest Wal-Mart can go in payment, this affect the choice of Wal-Mart because they cannot decide how much they privation to pay but it is forced upon them. For Tfl, the employment law affect them because of parts such as the EU directive call the Working Time Directive. This set out that there should be a minimum rest period of 11 consecutive hours in every 24-hours period. So Tfl have to give their employees this, even if they are falling behind in work, they have to employ a new set of worker to catch up.Competition lawCompetition law is a set of rules that promotes or seeks to maintain marketcompetition by restricting anti-competitive practices by businesses. Also these are laws governing how businesses can compete with each other. For example law against restricting business practices to reduce competition such as two or one businesses agreeing to a set price. Also laws against monopolies and mergers to stop businesses from dominating a particular market. This affects Wal-Mart because this company is one of the largest in the world, so they can investigated by the UKs Competition Commission because they dont indispensability Wal-Mart to be dominate.This affects Wal-Mart because it restrict them to the amount they could grow. For Tfl, the competition law affects them because as Tfl is in the tertiary sector of the economy, it offers contracts to supply them. This law states that Tfl must review all the bids to make it fair. This adds to the time and costs because it will take a longer period of time to process the bids and accept one.Social factorsSocial factors relate to changes in the behaviour, penchant and lifestyle of communities on the local, national and international scale. Over time many changes take place in society which are relevant for business organisations, such as inDemographic issuesHouseholds and familiesEducationAttitudes to wor kChanges in structure of the societyOne social factor is the demographic issues. For the UK, they are experiencing population growth. Currently, the UK population is 64.1 million and it grow by 400,000 last year. This is 0.63% increase from the previous year. For businesses this can be a good thing because there will be an increase in demand. Also population growth also means economic growth. For Tfl, population grow has pros and cons. this is because with population grow will mean there is an increase on the amount of people who use the services. So Tfl will have to spend more money to reduce the strain on the service. This affects the profits of the business. However because of the increase in the population there is deviation to be an increase in revenue because it costs money to use the service. For Wal-Mart, population growthis a good thing because more individuals will use their products. This will increase their profits. Another social factor is the changes in structure in t he society. Social structure is the distinctive, stable arrangement of institutions whereby human beings in a society interact and live together.Social structure is often treated together with the concept of social change, which deals with the forces that change the social structure and the organization of society. For businesses, one way the social structure changes is the ageing of the society. Currently, the UK population is ageing. For Tfl, this affects them because as the population ages, there will be less engineers and such to run the services or build it. For Wal-Mart this affects them because there will be less workers to run the business so Wal-Mart will have to spend more on employees to get the best. Another social factor is education. The average level of education in a society affects the interests and sophistication of consumers. For example, in a community in which a high percentage of potential customers have some form of post-secondary education, small-business own ers might use more details and explanations opus advertising and promoting products. For Tfl, this affect them because most of Tfls jobs are high skilled, so an ameliorate society is important and required to expand. However they can get around it by getting employees around the world.For Wal-Mart it is not as important because they need less educated employees because most of their employees are cashiers and shop assistants. However they need mangers. The UK does have an educated society so the business need not worried. Another social factor for businesses is attitudes to work. This is the way society thinks, feels or behaves to work. For businesses, this is important because businesses need employees who are motivated so that they care about. For the UK, the attitude of work is good because this society is a individualistic. This means individuals care about themselves and how they are going to a success. For Tfl, this is important because they want employees to work hard but a lso care about the people who is going to use the service. This is going to improve the customer experience because if they dont care than the service will not be the best it could be. For Wal-Mart, the attitudes of work is important because the more they care the better the business is.This will affect the profits of the business because customers will like the business because employee will show passion. Another social factor of the business is the attitudes to male and female graphic symbols in business. Gender roles are societys concepts of how men and women are expected to act, and are influence by cultural norms. For the UK, male role and females are one of the most equal in the world. However in some jobs males get more money than females for doing the same job. This affects Tfl because if there is inequality than female will not become engineers and such, which leads to less engineers and Tfl will need to pay more for engineers. So this affects their profits. For Wal-Mart, the gender role affects them because there will be less workers because females will be discouraged to work. Also if females work this will boost the economy and more people will spend on their business.