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Assess The Impact Of Political And Legal Changes On The Business Environment

1157 Words5 Pages

There are many political and legal changes that could happen in the business and some of these could potentially mean the increase or decrease in the custom that the business receives. In the future there could be a political change which could be the change in the government who are running the country, for Coca-Cola it might not affect them at first however the changes in the government would later have an impact. It would have an impact on the business because it would mean the business would mean the business would have to look at the new government legislations and the company would make sure they apply to each one. If the company didn’t do this then they could get fined. Due to political change it would/could lead to legal changes as …show more content…

Population of the country will constantly be increasing. Therefore, there is an increase in demands for Coca-Cola. There is also an increase in the number of workers available to work. If people move to particular cities or areas such as Wimpole Street in London which is where Coca-Cola’s UK subsidiary is. They will have more people available to work for them. They will also be able to have a variety of skilled workers working for them. This is because the more popular the city is the more variation of people they will have applying to work for them and they can employ the most skilled workers. In the source: Office for National Statistics ( https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/articles/overviewoftheukpopulation/july2017 ). In 2026 there is an increase of people aged 65 and over of 20.5%. Which will be increasing due to the high standard of living. This will have a positive effect on Coca-Cola as there will be an increase in demand which will increase the sales. More sales means more profit which is good for Coca-Cola. Although increase in population is good there is also negatives of high population. There could be a shortage of Coca-Cola products if there is high demand for the goods. It can also boost up the inflation rates in the future. Immigration is increasing in the UK, this will have a fantastic effect on Coca-Cola’s sales, revenue, …show more content…

It explains the conservative manifesto summary and the key points.
One of the key policies is that they will be “Scrapping the triple-lock on the state pension after 2020, replacing it with a “double lock”, rising with earnings or inflation”. The rise of inflation can have an impact on Coca-Cola. This is because it has a regressive effect on lower-income families and older people in society. This means food and domestic utilities rise at a rapid rate and people can’t afford them. This will lower sales for Coca-Cola in the future which will have a negative impact. It could also lead to an increase in pay claims as people look to protect their real incomes. This will then lead to a rise in unit labour costs and lower profits for businesses such as Coca-Cola. Having high inflation rates can bring uncertainty for businesses partly because they can’t be sure of what their costs and prices are likely to be. This could lead to a lower level of capital investment

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