Unit 1 – P6 M3
Mahbub Rahman
,Mahbub Rahman – Unit 1 – P6 & M3
Table of Contents
Introduction .............................................................................................................................................2
Political factors ........................................................................................................................................2
Legal factors .........................................................................................................................................4
Social factors ........................................................................................................................................7
Bibliography ...........................................................................................................................................10
1|Page
, Mahbub Rahman – Unit 1 – P6 & M3
Mahbub Rahman – Unit 1 – P6 and M3
Introduction
For this task, I will talk about the political factors and how these affect or are affected by
legal factors, and how these have an impact on Mercedes-Benz and Oxfam. I will also talk
about the social factors and the influence they have on Mercedes-Benz and Oxfam.
Political factors
Firstly, I will discuss how government support impacts Mercedes-Benz. In 2013, the United
Kingdom unemployment rate reached a profound level in the first quarter, 7.9%. The
government had to take action to decrease this. It had done so by creating government
support for businesses in the private sector. The government set aside £3.2billion to spend
on large businesses to support them, handed out in the form of a grant. A grant is a sum of
money that the government gives out and does not have to be paid back. Mercedes-Benz
could receive grants from the government to create jobs, affecting the business activity of
recruiting and expanding the business. This is because the grant would have to be spent on
expanding the business by building factories, which is an advantage to the business as
factories are needed for business expansion. These newly built factories would need trained
staff, so employees would have to be hired to work for the company and then they would
be trained to be able to work with specific equipment. This would help lower the
unemployment rate and also improve Mercedes-Benz’s rate of production, helping them to
meet demand which maximises profits (proving to be beneficial for both the government
and the organisation). This shows us the influence government support has on the
organisation, as it strongly influences the business activity of recruiting and training
employees. Government support also affects the business activity of researching and
developing. This is because the government may want Mercedes-Benz to find ways to
increase fuel-efficiency of vehicles, which they would do to help the environment. They may
also provide funds for Mercedes-Benz to increase the rate of production of fuel-efficient
cars, which would be an advantage if they had a high demand for such products. However,
they may face a difficulty with this as it strongly depends on the demand of fuel-efficient
cars. If Mercedes-Benz are producing too much and the supply is greater than the demand,
then it will prove to be expensive for Mercedes-Benz to store the products.
Government support affects the business activities of Oxfam, such as budgeting,
marketing/advertising and purchasing supplies. Budgeting is affected by government
support because of the increased funds. This means that Oxfam are able to increase the size
of their budgets. This then leads to the affects it as on marketing/advertising and purchasing
supplies. Government support would allow Oxfam to spend more money on advertising
which would lead to the organisation receiving more donations, clearly showing this political
factor to be an advantage for Oxfam. This money would then have to be spent on
2|Page
Mahbub Rahman
,Mahbub Rahman – Unit 1 – P6 & M3
Table of Contents
Introduction .............................................................................................................................................2
Political factors ........................................................................................................................................2
Legal factors .........................................................................................................................................4
Social factors ........................................................................................................................................7
Bibliography ...........................................................................................................................................10
1|Page
, Mahbub Rahman – Unit 1 – P6 & M3
Mahbub Rahman – Unit 1 – P6 and M3
Introduction
For this task, I will talk about the political factors and how these affect or are affected by
legal factors, and how these have an impact on Mercedes-Benz and Oxfam. I will also talk
about the social factors and the influence they have on Mercedes-Benz and Oxfam.
Political factors
Firstly, I will discuss how government support impacts Mercedes-Benz. In 2013, the United
Kingdom unemployment rate reached a profound level in the first quarter, 7.9%. The
government had to take action to decrease this. It had done so by creating government
support for businesses in the private sector. The government set aside £3.2billion to spend
on large businesses to support them, handed out in the form of a grant. A grant is a sum of
money that the government gives out and does not have to be paid back. Mercedes-Benz
could receive grants from the government to create jobs, affecting the business activity of
recruiting and expanding the business. This is because the grant would have to be spent on
expanding the business by building factories, which is an advantage to the business as
factories are needed for business expansion. These newly built factories would need trained
staff, so employees would have to be hired to work for the company and then they would
be trained to be able to work with specific equipment. This would help lower the
unemployment rate and also improve Mercedes-Benz’s rate of production, helping them to
meet demand which maximises profits (proving to be beneficial for both the government
and the organisation). This shows us the influence government support has on the
organisation, as it strongly influences the business activity of recruiting and training
employees. Government support also affects the business activity of researching and
developing. This is because the government may want Mercedes-Benz to find ways to
increase fuel-efficiency of vehicles, which they would do to help the environment. They may
also provide funds for Mercedes-Benz to increase the rate of production of fuel-efficient
cars, which would be an advantage if they had a high demand for such products. However,
they may face a difficulty with this as it strongly depends on the demand of fuel-efficient
cars. If Mercedes-Benz are producing too much and the supply is greater than the demand,
then it will prove to be expensive for Mercedes-Benz to store the products.
Government support affects the business activities of Oxfam, such as budgeting,
marketing/advertising and purchasing supplies. Budgeting is affected by government
support because of the increased funds. This means that Oxfam are able to increase the size
of their budgets. This then leads to the affects it as on marketing/advertising and purchasing
supplies. Government support would allow Oxfam to spend more money on advertising
which would lead to the organisation receiving more donations, clearly showing this political
factor to be an advantage for Oxfam. This money would then have to be spent on
2|Page
