Download Evaluate How Future Changes in Economic, Political

Evaluate How Future Changes in Economic, Political, Legal and Social
Factors May Impact on the Strategy of a Chosen Organization
Evaluate how future changes in economic, political, legal and social factors may impact on the
strategy of a chosen organisation Changes in a number of different factors can affect the way in
which the business is run in the future and this could mean that the business has to look into
different ways of tackling problems, which would mean they have to forecast what they believe
the future is going to be like. Tesco as an organisation is constantly expanding because of the
amount of people who need to use the supermarket and need to have easy access, in order to
keep this going the business has to forecast changes that will happen in the future so this way
they can look at what sort of implication the future could have on the business and they will be
prepared for the implications of the future and whether it will need to be changed or not.
Economic
changes
There are a number of economic changes that could occur in the economy which would mean
that the business has to look at the implications that they would have in the future. The
business would have to consider looking into what could happen, for example there could be
another economic crisis which would mean the economy would go into recession, if the
economy goes into recession then inflation would increase and for the business it would mean
that they would have to put their prices up and by increasing prices it would mean they would
lose custom because the customers won’t be able to afford the prices of the products because
of the increased prices due to the higher inflation rate. A recession could also mean the
business won’t be making as much profit and if the business isn’t making as much profit then
the business needs to look into possible strategies where they could increase the amount of
money they are making, but also if they are losing money that means the business isn’t able to
grow and will start to saturate and decline because more and more stores will close down, if
this happens then the business will slowly lose custom and won’t be able to keep up the
reputation of the business, as the business slowly falls it could eventually fall into liquidation
which will mean that the business has to sell off all their assets until their debts have been paid.
Political
&
Legal
Changes
There are a number of political & legal changes that could occur in the business and some of
these could potentially mean the increase or decrease in the custom that the business receives,
and it also shows that the business that the two changes are linked and how to tackle the
potential changes that are made. A political change would be the change in the government
who are running the country, for Tesco this doesn’t have a big impact however the changes in
the government could later have an impact because it would mean the business would have to
look at the new government legislations and make sure the company applies to each one. Due
to political change it would/could lead to legal changes as well, for example a recent change is
the ‘challenge25’ law that has been put in place by the current government and this would
relate to tesco as they have to look at the current ‘Under 21?’ law and then look into how they
could implicate the changes in the business as they might not have anticipated this change
which would mean they have to think of how to implicate and change it in all of their stores and
this would then mean the business having to look at the potential for the business to think of a
strategy which would communicate this to all of the employees and all of the stores. A future
change legal change that could be made is a change in the Health and safety legislations, they
could make a significant change which would mean the business needs to look into what they
would need to do to comply with the health and safety changes with the changes in health and
safety they would then have to make the changes in each of the stores if the changes in each
store are made appropriately then the business won’t have to be scrutinised for not making the
necessary
changes.
Technological
changes
The technological changes in the business will depend up on the development of the strategy in
the business and the way technology develops in the coming years. One technological
development that could e made is that all shopping could be turned into online shopping even
grocery shopping, even though online shopping has already come apparent in this economy it
could spread wider meaning more shops close down because of the replacement of online
shopping and the stock will only be kept in the correct conditions in the warehouse this will
change the way that people shops and the initiative will become shopping in ‘one click’ even
though this will increase the amount of sales for Tesco and the stakeholders would take more
of an interest as the number of shares in the business would increase. However the downside
of this is more people who work in the stores would lose their jobs as a result of online
shopping and this implication can have an effect on economy because rates of unemployment
would increase due to the number of people who have lost their jobs. Conclusion
To conclude tesco would have to look at all of these factors in order to anticipate the future of
their business the main reason the business has to forecast the future is so they are prepared
for anything that could happen and this could mean that the business is more prepared than
their competitors and could give them a healthier lead on there competitors.