Discuss the impact macro factors may place upon your chosen Essay

Discuss the impact macro factors may place upon your chosen organisation in the future (1-5 years) and how the organisation may - Essay Example In business there are different categories of laws, e.g. consumer laws etc. These are new laws set to protect consumers from illegal practices, such as misleading description of the goods offered. TESCO can cope with this rule by ensuring that it offers product of high quality to the customers as this will increase their trust to the company’s products. It should also distribute products which meet the required health standards to the consumers (Cole, 2012). This will ensure they meet customers’ expectations of getting safe and secure product, a factor that plays part in customer satisfaction. Employment laws are set to safeguard employees from getting mistreated by the seniors. The law addresses issues such as the length an employee is supposed to be working and the minimum salaries an employee need to get (Cripps, 2012). As much as Tesco aim to operate at a minimum cost, they have to ensure they give proper remuneration to their employees to enable them operate per th e law. By doing this, they will motivate employees thus increasing the rate of return to the business. Health and safety legislation is also part of the legal laws set to be observed by every company. It states the need of the organization to offer training to it employees (â€Å"Buxton Advertiser†, 2011). ... A competition law encourages government to subsidize the cost of production incurred by these small firms. This will enable them participate in external trade and compete with other established companies. To cope with this TESCO has to come up with effective ways to ensure that they reduce their cost of production. They can invest in other countries and also adopting the most advanced form of technology in writing to reduce their production cost (â€Å"Buxton Advertiser†, 2011). This will enable them compete with the firms getting subsidies from the government. With the expanding markets in the United Kingdom which is the first Tesco base, many new firms are entering the market to take advantage of the high demand thus increasing pressure on TESCO’s management to make necessary changes. Tesco organization can handle this by adopting a high level differentiation of the product in order to continue increasing brand loyalty by customers thus counter checking the thrill of the new entrant in the market (Cole, 2012). This will help Tesco to continue dominating the market. Another factor that may affect the Tesco’s ability to grow is the emerging power of suppliers. With the continued economic growth in the world, many suppliers of both goods and services have seriously been affected by upcoming supermarket chains (Cripps, 2012). This has put Tesco under a constant threat of losing its position in the market to these leading supermarket chains who are offering better prices of products to their suppliers. To avoid losing suppliers, TESCO has to provide better prices to suppliers. This will ensure they contain a significant part of the market. This will make the company the leading